Vega Capital Group LLC

Item 5. FEES AND COMPENSATION

A.   For our investment management services, the Firm charges a quarterly fee ranging between
     0.25% and 0.5% of the value of the portfolio assets under management (asset-based fee).
     The exact rate of the asset-based fee is based on the investment strategy selected by the
     client (see Item 4.B.). The asset-based fees are negotiable and billed quarterly in advance
     based on the account balance on the last trading day of the previous quarter.

     The performance fee (if applicable) is charged annually at the rate of 10% of the net
     investment gain defined as the sum of all realized and unrealized gains and losses for the
     year.

     Vega Capital Group also offers a fixed quarterly fee for certain client accounts. The
     minimum fixed fee is $500 per quarter. The amount of fixed fee is negotiable and billed
     quarterly in advance.

B.   Clients can choose whether the Firm’s fee is deducted directly from their accounts or
     whether they are billed. Some clients may choose to write a check for the advisory fee;
     others may wish to sign a form instructing the custodian firm to have a check made payable
     to Vega Capital Group from their account. Clients, not the custodian, are responsible for
     verifying the management fees and the manner in which that fee was calculated. Asset-based
     fees are charged quarterly in advance, performance fees (if applicable) are charged annually
     in arrears.

C.   In addition to the Vega Capital Group’s fees, the clients may have to pay brokerage trading
     commissions and various account maintenance fees charged by a custodian for an account.
     We direct clients to this Brochure’s Item 12 for further discussion of brokerage costs.

D.   All clients must pay asset-based fees quarterly in advance. For the initial quarter of
     investment management services, the first quarter’s fees will be calculated on a pro-rata
     basis. The agreement between us and a client will continue in effect until terminated by
     either party for any cause or reason effective upon thirty (30) days written notice. Upon the
     effective date of termination, the fees paid for that quarter shall be pro-rated through the
     termination date and any remaining balance shall be refunded to the client, as appropriate, in
     a timely manner. The performance fee (if applicable) shall be computed as though the
     termination date was the last day of the calendar year.

E.   No one in the Firm receives compensation for selling securities or other investment
     products.

Item 7. TYPES OF CLIENTS

Typically, our clients include high net worth individuals and other individuals (other than high net
worth individuals). We are also prepared to provide services to corporations and other businesses, to
charitable organizations, estates and trusts.

As a condition for starting and maintaining a relationship, Vega Capital Group shall generally
impose a minimum portfolio size of $500,000. This amount may be negotiable, at the Firm's
discretion, depending upon such factors as prior relationship or future expectations. Vega Capital
Group, in its sole discretion, may accept clients with smaller portfolios based upon certain criteria
including anticipated future earning capacity, anticipated future additional assets, account
composition, related accounts, and pre-existing clients. Vega Capital Group shall only accept clients
with less than the minimum portfolio size if, in the sole opinion of Vega Capital Group, the smaller
portfolio size will not cause a substantial increase in investment risk. Vega Capital Group may
aggregate the portfolios of family members to meet the minimum portfolio size.