Wassaw Sound Management LLC

Fees and Compensation

The following types of fees will be assessed:

Asset Management – Fees are charged in advance and are based primarily on asset size and the
level of complexity of the services provided. In individual cases, WSM has the sole discretion to
negotiate fees that are lower than the standard fee shown or to waive fees. Fees are not based on
the share of capital gains or capital appreciation of the funds or any portion of the funds.
Comparable services for lower fees may be available from other sources. Fees for the initial
quarter will be prorated based upon the number of calendar days in the calendar quarter that the
advisory agreement is in effect. Fees are based on the market value of the assets on the last
business day of the previous quarter. Annual fees range from .10% - 1.25% depending on the
amount of assets under management (“AUM”) – See chart below. Consulting services are included
in these fees for asset management services with the exception of unique circumstances that may

require a separate agreement for financial planning services (description and fees are discussed
below). If the situation warrants separate financial planning fees, it will be discussed upfront and
a separate agreement will be negotiated.

Fee Schedules for Asset Management:

   Total Account Value                                  Maximum Annual Advisory Fee
 First $5,000,000                                                1.00%
 Next $10,000,000                                                0.60%
 Next $10,000,000                                                0.50%
 Next $25,000,000                                                0.45%
 Next $25,000,000                                                0.35%
 Next $25,000,000                                                0.25%
 Next $150,000,000                                               0.15%
 Over $250,000,000+                                              0.10 %

In certain circumstances, WSM may consider clients below $5,000,000 with the following fee schedule:

 First $3,000,000                                                    1.25%
 Next $2,000,000                                                     0.85%

As authorized in the client agreement, the account custodian withdraws Wassaw Sound
Management, LLC’s advisory fees directly from the clients’ accounts according to the custodian’s
policies, practices, and procedures. The custodial statement includes the amount of any fees paid
to WSM for advisory services. You should carefully review the statement from your
custodian/broker-dealer’s statement and verify the calculation of fees. Your custodian/broker-
dealer does not verify the accuracy of fee calculations.

Fees are charged in advance on a quarterly basis, meaning that advisory fees for a quarter are
charged on the first day of the quarter. Clients may terminate investment advisory services
obtained from WSM, without penalty, upon written notice within five (5) business days after
entering into the advisory agreement with WSM. The client is responsible for any fees and charges
incurred by the client from third parties as a result of maintaining the account such as transaction
fees for any securities transactions executed and account maintenance or custodial fees.
Thereafter, the client may terminate advisory services upon written notice delivered to and
received by WSM. Clients who terminate investment advisory services during a quarter are
charged a prorated advisory fee based on the date of WSM’s receipt of client’s written notice to
terminate. Any earned but unpaid fees are immediately due and payable, and any paid but
unearned fees will be immediately refunded.

Financial Planning/Consulting – Financial planning/consulting services are charged in advance
through a fixed fee arrangement as agreed upon between the client and Wassaw Sound
Management, LLC. There will never be an instance where $500 or more in fees is charged six or
more months in advance. Fees are negotiable and vary depending upon the complexity of the
client situation and services to be provided. Similar financial planning/consulting services may be
available elsewhere for a lower cost to the client. Fixed fees for consulting projects range from

$20,000 to $50,000 per project. The total charge is determined at the start of the advisory
relationship.

Typically, clients will be invoiced monthly or quarterly for all time spent by WSM as agreed upon
by client, or upon completion of the services if less than a month. Clients who wish to terminate
the planning/consulting process prior to completion may do so with written notice. The client may
obtain a refund of a pre-paid fee if the advisory contract is terminated before the end of the billing
period by contacting Raymond Singletary at (404) 831-5109. Upon receipt of written notification,
any earned fee will immediately become due and payable. A client may terminate an advisory
agreement without being assessed any fees or expenses within five (5) days of its signing.

Additional Fees and Expenses

In addition to advisory fees paid to WSM as explained above, clients may pay custodial service,
account maintenance, transaction, and other fees associated with maintaining the account. These
fees vary by broker and/or custodian. Clients should ask WSM for details on transaction fees or
other custodial fees specific to their account, as these fees are not included in the annual advisory
fee. WSM does not share any portion of such fees. Additionally, for any mutual funds purchased,
the client may pay their proportionate share of the funds’ distribution, internal management,
investment advisory and administrative fees. Such fees are not shared with WSM and are
compensation to the fund manager. Clients are urged to read the mutual fund prospectus prior to
investing.

Mutual fund companies impose internal fees and expenses on clients. These fees are in addition
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Types of Clients

WSM offers investment advisory services to high net worth individuals. There is generally a
minimum account size of $5,000,000 to open and maintain an advisory account, however WSM
has the discretion to waive the minimum, and a separate fee schedule is provided under Item 5 –
Fees and Compensation for clients that are accepted below $5,000,000.

Form ADV, Part 2A, Item 8

       Methods of Analysis, Investment Strategies, and Risk of Loss

WSM’s methods of analysis and investment strategies incorporate the client’s needs and
investment objectives, time horizon, and risk tolerance. WSM is not bound to a specific investment
strategy for the management of investment portfolios, but rather consider the risk tolerance levels
pre-determined gathered at the account opening, as well as on an on-going basis. Examples of
methodologies that our investment strategies may incorporate include:

Asset Allocation – Asset Allocation is a broad term used to define the process of selecting a mix
of asset classes and the efficient allocation of capital to those assets by matching rates of return to
a specified and quantifiable tolerance for risk.

Dollar-Cost Averaging – Dollar-cost averaging is the technique of buying a fixed dollar amount
of securities at regularly scheduled intervals, regardless of the price per share. This will gradually,
over time, decrease the average share price of the security. Dollar-cost averaging lessens the risk
of investing a large amount in a single investment at the wrong time.

Technical Analysis – involves studying past price patterns and trends in the financial markets to
predict the direction of both the overall market and specific stocks.

Long-Term Purchases – securities purchased with the expectation that the value of those securities
will grow over a relatively long period of time, generally greater than one year.

Short-Term Purchases – securities purchased with the expectation that they will be sold within a
relatively short period of time, generally less than one year, to take advantage of the securities’
short-term price fluctuations.

Our strategies and investments may have unique and significant tax implications. Regardless of
your account size or other factors, we strongly recommend that you continuously consult with a
tax professional prior to and throughout the investing of your assets.

Investing in securities involves risk of loss that clients should be prepared to bear. Although we
manage your portfolio with strategies and in a manner consistent with your risk tolerances, there
can be no guarantee that our efforts will be successful. You should be prepared to bear the risk of
loss.

All investments involve the risk of loss, including (among other things) loss of principal, a
reduction in earnings (including interest, dividends, and other distributions), and the loss of future
earnings. These risks include market risk, interest rate risk, issuer risk, and general economic risk.
Regardless of the methods of analysis or strategies suggested for your particular investment goals,
you should carefully consider these risks, as they all bear risks.

Below are some more specific risks of investing:

Market Risk. The prices of securities in which clients invest may decline in response to certain
events taking place around the world, including those directly involving the companies whose
securities are owned by the client or an underlying fund; conditions affecting the general economy;
overall market changes; local, regional or global political, social or economic instability; and
currency, interest rate and commodity price fluctuations. Investors should have a long-term
perspective and be able to tolerate potentially sharp declines in market value.

Management Risk. WSM’s investment approach may fail to produce the intended results. If our
perception of the performance of a specific asset class or underlying fund is not realized in the
expected time frame, the overall performance of client’s portfolio may suffer.

Equity Risk. Equity securities tend to be more volatile than other investment choices. The value
of an individual mutual fund or ETF can be more volatile than the market as a whole. This volatility
affects the value of the client’s overall portfolio. Small- and mid-cap companies are subject to
additional risks. Smaller companies may experience greater volatility, higher failure rates, more
limited markets, product lines, financial resources, and less management experience than larger
companies. Smaller companies may also have a lower trading volume, which may
disproportionately affect their market price, tending to make them fall more in response to selling
pressure than is the case with larger companies.

Fixed Income Risk. The issuer of a fixed income security may not be able to make interest and
principal payments when due. Generally, the lower the credit rating of a security, the greater the
risk that the issuer will default on its obligation. If a rating agency gives a debt security a lower
rating, the value of the debt security will decline because investors will demand a higher rate of
return. As nominal interest rates rise, the value of fixed income securities is likely to decrease. A
nominal interest rate is the sum of a real interest rate and an expected inflation rate.

Municipal Securities Risk. The value of municipal obligations can fluctuate over time, and may
be affected by adverse political, legislative and tax changes, as well as by financial developments
that affect the municipal issuers. Because many municipal obligations are issued to finance similar
projects by municipalities (e.g., housing, healthcare, water and sewer projects, etc.), conditions in
the sector related to the project can affect the overall municipal market. Payment of municipal
obligations may depend on an issuer’s general unrestricted revenues, revenue generated by a
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