Sterling Capital Management Inc

Item 5: Fees & Compensation

For separately managed accounts the adviser’s fee is based on the clients as it’s under management typically
2% per year. These are negotiable. The clients should refer to their investment advisory agreement for the
fee schedule applicable to them.

The firm charges a fixed fee for financial planning services typically $350 an hour. The adviser may modify,
leave, or otherwise charge a flat fee for service.

Subject to the written approval from the client, fees are deducted it from client accounts quarterly.

Fees paid to the adviser for an exclusive of all custodial fees, brokerage commissions and transaction costs
paid to the client’s custodian, brokers or other third-party as well as any fees and taxes on brokerage accounts
and securities transactions. Addition to the fees described our clients may incur other fees, charges and
expenses as outlined below.

Clients and also pay brokerage charges that include commissions charged by a broker to make a stock or
country. In connection with the purchase or sale of income securities, the broker may charge a markup or a
mark down. In some instances, there may be a transactional commission charge by a broker to purchase or
sell load or no-load mutual Funds. Broker is often reduced, discount, or may waive commission fees
completely. Clients we have option to purchase investment products that the firm recommends through other
brokers for agents that are not affiliated with the firm.

Mutual Funds in the client portfolio might also charge advisory fee expenses. Clients may also incur fees on
individual retirement accounts, service fees such as wiring fees, and in some instances these to open or closed
accounts. Brokerage firms and the custodians holding the securities account usually charge a flat service fee
for each transaction.

The firm typically charges fees three months in advance. As mentioned in this section, the adviser me at its
discretion delete billing fees. The adviser will cease the accrual of advisory fees upon receipt of late notice
by a client terminating investment advisory service. Are Fund will be paid for any fractional. For which the
client has already paid for, alternately, charges will be assessed for any fees that have not been billed for a
fractional period.

These are subject to change. Such changes must be approved by the client in writing. Any approve change in
fees shall apply for the entire quarter in which the fee change was approved by the client.

As mentioned elsewhere in this for sure, the adviser directs trades for most of the clients’ accounts through
Berthel Fisher Companies securities. Certain personnel of the adviser also registered representatives of
Berthel Fisher. Acting in their capacity as a registered representative of the broker dealer or personnel of the
adviser, investment adviser representatives may receive commissions on stock trades, bond trades, and
related brokerage services.

They may at their discretion choose to reduce commissions for complete trades at a loss. They may receive
trailing commissions (12b-1 fees) on selected mutual Funds, and commissions or trailing commissions on
annuities and insurance products. They may receive commissions on initial public offerings and mark ups or
mark downs on selected income securities. They should be considered additional compensation to the
adviser.

Additional compensation realized by personnel associated with the adviser may give rise to a conflict of
interest as it represents an incentive to recommend investment products based on compensation received,

rather than on the client’s needs. To address this concern, the adviser considers the investment products
offered in the marketplace, the characteristics of the products, and there fit in the then current economic
condition. The firm also considers the accessibility and service offered on the products and the support
offered by the respective firm assisting and product placement. The firm is satisfied that the historic and
perspective choice of investments has and may maintain a reasonable balance, addressing overall fit and
reasonable overall cost. The adviser does not represent that any aspect of their fees or that the investment
selection is driven solely by the lowest priced product. The firm may include mutual Funds in a client’s
overall investment portfolio. The firm consider us friends that have no load and fines that have front end or
rear end load.

As also noted, most no load funds and some load funds may have a transaction charge upon purchase or sale.
The amount of charge is a factor, but not the primary consideration in choosing a fund.

Tom Portz, President of the adviser, also maintains a related business, Sterling Financial, Inc. That firm
receives commissions and compensation for personnel of the adviser acting in their capacity as registered
representatives. And the total compensation earned by both firms, more than 50% is from the sale of
commissionable investment products and trailing commission compensation. Advisory fees are charged in
addition to any commissions or other sales compensation. Advisory fees are not reduced to offset
Commissions, or the other compensation received by personnel acting in their capacity as registered
representative. The adviser me, as stated previously and, at its sole discretion, reduce or forgo the overall
annual fee charged at the time the account established.

                           Item 6: Performance-Based & Side-By-Side Management

The firm does not collect performance allocation fees on any accounts.

Item 7: Types of Clients

The firm has a broad mix of clients including individuals, high net worth individuals, pension and profit-
sharing plans, trust accounts, corporations, charities and nonprofit organizations.

The Firm generally requires a minimum account size of $1,000,000. The minimum account requirement
may be waived at the Firm’s sole discretion.