South Cove Financial LLC

Item 5 – Fees and Compensation

A.     Fee Schedule

The fees and compensation payable to South Cove Financial, LLC are negotiable and vary
among its Clients. South Cove Financial, LLC generally structures our fees as a percentage
of assets under management, and document fees in the advisory agreement.
AUM-based fees typically start at 1.55% per year of managed assets.

Fees for these services will be based on a percentage of Assets Under Management as follows:
       Assets Under Management                    Annual Fee   Quarterly Fee
             Up to $2,000,000                      1.55%       00.3875%
               $2,000,001 - $5,000,000             1.40%          .35%
               Over $5,000,001                     1.30%          .325%

Accounts within the same household may be combined for a reduced fee. Fees are billed
quarterly in arrears based on the amount of assets managed as of the close of business on the
last business day of each quarter. Quarterly advisory fees deducted from the client’s account
by the custodian will be reflected in a provided fee invoice as fees are withdrawn. The invoice
shall include the account values so that Client can verify the computation of the advisory fee.

Clients may terminate their account within five business days of signing the Investment
Advisory Agreement for a full refund and without penalty. Thereafter, clients may terminate
advisory services with 30 days written notice. The Adviser will be entitled to a pro rata fee for
the days service was provided in the final quarter. The Investment Advisory Agreement shall
be amended if there is any increase in fees.

B.     Fee Calculation

For fees based upon portfolio, account or asset valuations, South Cove Financial, LLC value
liquid securities in the accounts South Cove Financial, LLC manage at the closing price, on
the valuation date, as reported by your custodian at the end of each calendar quarter.

South Cove Financial, LLC values illiquid securities using one of the following
methodologies:

       At the current market value (if valuation is provided by the manager);

       At the “invested amount” (if not regularly traded; as a result, a liquid market price
       from an independent third party is not available);

       At a mutually agreed value (for client balance sheet purposes or reporting only
       assets).

Valuations of illiquid securities may be materially different than the values you would

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realize upon liquidation.

C.      Asset Based Management Fee
South Cove Financial, LLC typically receives a quarterly or monthly asset-based
management fee calculated as a percentage of each Client’s account, payable quarterly
or monthly in arrears. The management fee varies according to the scope of work involved
and complexity in managing the assets.

D.      Payment of Fees
Subject to the clients’ written authorization in the advisory agreement, South Cove
Financial, LLC will request fee payment directly from the clients’ broker / custodian.
South Cove Financial, LLC will also provide clients with a detailed billing statement which
shows actual fees charged and the asset value upon which the fee is based, if applicable.
The invoice will also include the formula used to calculate the fee, the fee calculation
itself, the time period covered by the fee, and the name of the custodian(s).

Clients’ billing statement may include illiquid assets not held at their broker / custodian
(such as private hedge funds, private equity or real estate partnerships for which periodic
valuations are delayed or not regularly provided. Adviser does not charge a management
fee on illiquid or static assets. As a result, there may be a difference in the value South Cove
Financial, LLC uses for billing purposes and the statements that
Clients’ receive directly from their broker / custodian.

E.      Third-Party Fees
The Clients shall pay such costs and expenses as South Cove Financial LLC shall reasonably
determine to be necessary, appropriate, advisable or convenient to carry on their businesses
and realize their objectives, including but not limited to: (i fund management
and realize their objectives, including but not limited to: (i) fund management fees; (ii) all
general investment expenses (i.e., expenses which South Cove Financial, LLC reasonably
determines to be directly related to the investment of the Client’s assets); (iii) all
administrative, legal, accounting, auditing, record-keeping, tax form preparation, compliance
and consulting costs and expenses; (iv) fees, costs and expenses of third-party service
providers , brokerage commissions, transaction fees; and (v) any extraordinary expenses,
among other expenses. These fees are separate from, and in addition to South Cove Financial,
LLC’s fees.

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F.      General Information on Advisory Services and Fees
Official record of client account(s): Clients’ third party, qualified custodian (e.g. bank,
broker, trust company, insurance company, mutual fund complex) is the “official” record
keeper of your account data and information, including market value, cost basis, and capital
gains and losses. As a result, although South Cove Financial, LLC try to manage tax lots in
taxable portfolios for long-term gains or losses, the official record keeper is your custodian.

South Cove Financial, LLC will pro rate the management fee for periods of less than a full
...

Item 7 – Types of Clients

South Cove Financial, LLC provide our services to the following types of clients:

       Individuals and families

       Retirement and education accounts (IRA, 401k, NQDC, 529 plans)

       Private entities owned by our individual clients (e.g. partnerships, LLCs)

       Trusts and private foundations

                                                                                Part 2A of ADV:
                                                                       South Cove Financial, LLC
                                                                                      Brochure