The Portfolio Strategy Group LLC

Item 5: Fees and Compensation

Separately Managed Accounts

Compensation Fees

For its discretionary investment management services to clients, clients will pay PSG fees as specified in
its client agreement. Clients with separately managed accounts advised by PSG will pay management fees
to both PSG and to any Manager that provides investment advisory services to those Clients. PSG's
management fees are due quarterly and are paid in advance. They are calculated based on the account
balance at the end of the previous quarter. Clients pay PSG fees for services as follows:

      •   Upon request, PSG will perform a detailed analysis of a current portfolio and its historical results,
          including formulating an investment strategy, for which PSG charges a negotiated fee based on the
          amount of work involved in reviewing current investments, historical results and other relevant
          information. PSG does not charge a fee for formulating an investment strategy to those who become
          an investment advisory client of PSG.
      •   For selecting Managers, placing Client assets with Managers, monitoring and reviewing their
          performance, PSG charges a flat annual fee of 0.75% (0.1875% quarterly) of the first
          $10,000,000 of Client assets. Amounts in excess of $10,000,000 of Client assets are subject to a
          negotiable fee. Some legacy Clients pay lower fees based on the fee schedule existing at the time
          they became Clients.

      •   For Clients placed in an Equity Income portfolio, PSG charges a flat annual fee of 0.75%
          (0.1875% quarterly) of the first $10,000,000 of Client assets. Amounts in excess of
          $10,000,000 of Client assets are subject to a negotiable fee. Some legacy Clients pay lower fees
          based on the fee schedule existing at the time they became Clients.

      •   In addition to PSG’s management fees, Clients are also responsible for the management fees
          owed to any Managers selected to provide investment advisory services to said Clients. PSG’s
          selected Managers generally charge annual management fees from 0.08% to 1.0% of Client
          assets. Most Managers charge a flat fee while a few Managers have asset-based fee schedules. All
          fee arrangements are disclosed in each Managers’ respective agreement, and many of these fees
          are discounted from the Managers' standard management fee rate as negotiated by PSG. The
          Manager's management fees may be due quarterly, either in advance or in arrears.
      •   For PSG's management of Clients' fixed income portfolios, an annual fee equal to 0.5% (0.125%
          quarterly) of the assets under management is charged. For specialized short duration portfolios or
          “holding accounts” the fee may be reduced or waived as determined and negotiated between the
          Client and PSG. PSG assesses fees on accrued but unpaid interest.

  •       In certain cases, new Clients referred by Third party sources may be charged up to a 1% annual
          (0.25% quarterly) management fee. PSG may also negotiate fees other than those set forth above
          as PSG may determine in its sole discretion. PSG waives its fees for its family members and
          friends.

  •       Client assets (typically cash balances) may be invested temporarily in money market funds. These
          money market funds automatically assess a management fee which is in addition to the fees
          charged by PSG as set forth above.

Our fees are based on the market value of your assets under our management, including cash, accrued

interest, accrued dividends, and securities purchased on margin.

Fees Deducted from Client Accounts

Clients are billed by invoice sent to the custodian each calendar quarter for the management fee and
performance allocation or fee (where applicable) as discussed in Item 5, above. The fees are paid from the
relevant Client's account. A limited number of historical Clients are billed directly by invoice.

Other Fees or Expenses

For smaller accounts or accounts invested in specialized areas, Client assets are invested in Mutual Funds
or Exchange Traded Funds. For cash balances, Client assets are invested in money market accounts, and / or
where appropriate, in short- term US Treasuries. Client invested in mutual funds and money market funds
pay all management, trading, custodian and other related fees and expenses, where applicable, in addition
to PSG’s fees. Client assets that are invested in mutual funds are either placed in no-load mutual funds or
PSG negotiates a reduction or waiver of mutual fund sales fees. In some limited instances, filing fees for
SEC Fair Fund Claims may be debited from client accounts.

Please refer to Item 12 for more information on brokerage practices.

Prepayment of Fees

The management fee paid to PSG and some of the Managers are prepaid quarterly in advance. If the
investment management agreement is terminated, the management fee paid to PSG will be pro-rated and
charged for that quarter only up to the date of termination. Any unearned fees will be credited back to the
Client's account.

Held-Away Accounts

For certain clients, we charge an advisory fee for services provided to the held-away accounts mentioned
above in Item 4, just as we do with client accounts held at our primary custodian. The specific fee
schedule charged by us is provided in the client’s investment advisory agreement with us.

Financial Planning Services

Financial Planning services are typically provided at no additional costs to clients with an investment
management agreement. Otherwise, Clients are charged an hourly fee of $500 per hour, but this fee is
negotiable. Clients receive a monthly invoice with the fees charged. Clients generally pay by check paid
and sent directly to PSG.

Hedge Funds and Other Pooled Investment Vehicles
...

Item 7: Types of Clients

Types of Clients and Minimum Account Size

PSG provides investment advisory services to the following types of persons:

    •     Individuals; including High Net Worth Individuals,
    •     Pension and profit-sharing plans (including ERISA plans),
    •     Trusts, estates, or charitable organizations,
    •     Corporations or business entities other than those listed above, and
    •     A private university's endowment fund and plant and equipment fund.

For Separately Managed Account clients, PSG desires a minimum account size of $2 million in assets under
management, although PSG does negotiate and agree to a lower minimum under certain circumstances.

For Client Funds, PSG’s minimum investment is $500,000. PSG may waive or reduce the minimum
investment amount in its sole discretion.