103 Advisory Group LLC

Item 5 – Fees and Compensation

In addition to the information provided in Item 4 – Advisory Business, this section provides additional
details regarding our firm’s services along with descriptions of each service’s fees and compensation
arrangements. It should be noted that lower fees for comparable service may be available from
other sources. The exact fees and other terms will be outlined in the agreement between you and
103 Advisory Group.

Asset Management Services

Fees charged for our asset management services are charged based on a percentage of assets
under management, billed in arrears (at the end of the billing period) on a monthly calendar basis
and calculated based on the fair market value of your account as of the last business day of the
current billing period. Fees are prorated (based on the number of days service is provided during
the initial billing period) for your account opened at any time other than the beginning of the billing
period. If asset management services are commenced in the middle of the billing period, then the
prorated fee for that billing period will be billed in arrears at the end of that billing period.

The asset management services continue in effect until terminated by either party (i.e., 103 Advisory
Group or you) by providing written notice of termination to the other party. When fees are billed in
arrears, 103 Advisory Group will prorate the final fee payment based on the number of days services
are provided during the final period. The amount of client assets on the termination date will be
used to determine the final fee payment.

Fees charged for our asset management services are negotiable based on the type of client, the
complexity of the client's situation, the composition of the client's account (i.e., equities, mutual
funds, fixed income), the potential for additional account deposits, the relationship of the client with
the investment adviser representative, and the total amount of assets under management for the
client.

For our asset management services, clients will be charged an annual fee based upon the amount of
assets under management. Each asset tier shall be assessed a fee percentage in accordance with
the schedule shown below. The cumulative fee percentage for the account shall be a blended rate
based on the fee percentages applied to each asset tier:

          Assets Under Management                                          Annual Fees

          First $2,500,000                                                    1.000%
          Next $7,500,000                                                     0.500%
          Next $15,000,000                                                    0.400%
          Thereafter                                                          Negotiable

103 Advisory Group LLC                            Page 11                        Form ADV Part 2A Firm Brochure

         (This is a blended fee schedule. This means that the assets in a client’s account will be billed
         at different levels according to the fee schedule above. For example, if a client had an
         account value of $25,000,000 then the following equation would be used to calculate their
         monthly fee: ($2,500,000 x 1%) + ($7,500,000 x .5%) + (15,000,000 x.4%) = $122,500 /12 =
         $10,208.33)

There is a minimum account size of $1,000,000. The minimum account size is negotiable at the
discretion of 103 Advisory Group. There is a minimum annual fee of $2,500.00.

103 Advisory Group believes that its annual fee is reasonable in relation to: (1) services provided and
(2) the fees charged by other investment advisers offering similar services/programs. However, our
annual investment advisory fee may be higher than that charged by other investment advisers
offering similar services/programs. In addition to our compensation, you may also incur charges
imposed at the mutual fund level (e.g., advisory fees and other fund expenses).

The investment advisory fees will be deducted from your account and paid directly to our firm by
the qualified custodian(s) of your account. You will authorize the qualified custodian(s) of your
account to deduct fees from your account and pay such fees directly to our firm.

You should review your account statements received from the qualified custodian(s) and verify that
appropriate investment advisory fees are being deducted. The qualified custodian(s) will not verify
the accuracy of the investment advisory fees deducted.

Brokerage expenses and/or transaction fees charged by the qualified custodian are billed directly to
you by the qualified custodian. 103 Advisory Group does not receive any portion of such
commissions or fees from you or the qualified custodian. In addition, you will incur certain charges
imposed by third parties other than 103 Advisory Group in connection with investments made
through your account including, but not limited to, mutual fund internal expenses, variable annuity
expenses and fees, IRA and qualified retirement plan fees, and charges imposed by the qualified
custodian(s) of your account. Management fees charged by 103 Advisory Group are separate and
distinct from the fees and expenses charged by investment company securities that may be
recommended to you. A description of these fees and expenses are available in each investment
company security’s prospectus.

Fees For Sub-Advisory Relationships

As discussed in Item 4 above, there are occasions where an unaffiliated investment advisory firm
(Manager) acts in a sub-adviser capacity to us. Under this arrangement, the Manager invests the
assets based upon the parameters provided by 103 Advisory Group. Depending on the agreement
with the Manager, each firm will charge a separate management fee that will be collected and
distributed by the custodian. This total fee includes our portion of the investment advisory fee as
...

Item 7 – Types of Clients

103 Advisory Group generally provides investment advice to the following types of clients:

    •    Individuals
    •    High net worth individuals

You are required to execute a written agreement with 103 Advisory Group specifying the particular
advisory services in order to establish a client arrangement with 103 Advisory Group.

Minimum Investment Amounts Required

103 Advisory Group requires a minimum of $1,000,000 in order to open an account. To reach this
account minimum, clients can aggregate all household accounts. Exceptions may be granted to this
minimum at the discretion of Advisor.

The minimum fixed fee generally charged for financial planning and consulting services on a fixed
fee basis is $7,500.