34 Financial LLC

Item 5 – Fees and Compensation
Investment Advisory Services
The specific manner in which fees are charged by the Firm is established in a client’s written
agreement. Fees are based on a percentage of assets under management and calculated at an annual
rate and billed in arrears on a monthly basis. Fees are calculated based upon the assets in the
account on the last day of the prior month per the schedule below and in some instances, may be
negotiated.

STANDARD FEE SCHEDULE
Market Value of Account                        Annual Advisory Fee

   •   First $5,0000,000                        1.00%
   •   Next $5,000,000                          0.75%
   •   Over $10,000,000                          0.50%

The initial fee is due on the first of the month following the day the account is funded. The initial
fee will be prorated and based on the number of days starting with the opening date through the
last day of the month. Thereafter, the monthly fee is based on the account asset value on the last
day of the respective month. Termination of the contract will not affect any liabilities or obligations
of the parties from transactions initiated before termination of this Agreement or a client’s
obligation to pay advisory fees in arrears (pro-rated through the date in which termination is
effective).

The minimum annual fee is $12,000, prorated and paid monthly in arrears. Accordingly, a client
may pay an effective rate greater than the rate specified in the fee schedule of their advisory
agreement. The Firm, in its sole discretion, may waive its minimum fee and/or charge a lesser
investment advisory fee based upon certain criteria (e.g., historical relationship, type of assets,
anticipated future earning capacity, anticipated future additional assets, dollar amounts of assets
to be managed, related accounts, account composition, negotiations with clients, etc.).
Fees will be debited from the account specified in the advisory agreement. The amount of the fee
will be shown on the statement received by the custodian. 34 Financial, LLC urges clients to
carefully review such statements. Upon request, 34 Financial, LLC will bill a client directly for
advisory services. If requested, billing information must be in writing in the advisory agreement.
Advisory fees are due upon receipt.

Margin
Investment adviser representatives trade on margin for client‘s accounts, when consistent with the
client’s suitability profile and risk tolerance or at the client’s directive. This could result in a high
portfolio turnover ratio and higher transaction charges in accounts with such charges. Additionally,
the use of margin results in interest charges as well as all other fees and expenses associated with
the security or account involved.

Fees are debited directly from client accounts and are calculated using the total assets in the
account as shown on the client custodial statement, including any assets purchased on margin. If
there is a net debit cash balance in the account as a result of using margin, the cash balance will be
excluded from the fee calculation. Net positive cash balances in type 1 (cash account) and type 2
(margin account) are included in the fee calculation.

Other Charges
There are instances in which the 34 Financial, LLC would recommend a mutual fund that carries
a 12(b)-1 fee, even when a lower-cost share class is available for the same fund. For example, a
lower-cost class share may not be available to 34 Financial, LLC due to investment minimums. In
other cases, mutual funds charging 12(b)-1 fees are transferred into 34 Financial, LLC. In which
case the Firm may recommend the client holds the existing share class, instead of selling the fund
and buying a lower-cost share, which could result in a tax liability. In addition, some mutual funds
charge 12(b)-1 fees, but no transaction fees, while other share classes is in the same fund family
do not charge 12(b)-1 fees, but do charge transaction fees. Mutual funds charging 12(b)-1 fees will
be recommended when the overall cost is seen as a benefit to the client if the anticipated transaction
fees exceed the anticipated 12(b)-1 fees. When recommending a particular mutual fund share
classes, the different available share classes are compared and reviewed along with the anticipated
investment timeframe, potential tax consequences, future anticipated transactions and other costs
to determine the best selection for the client at that time. 34 Financial, LLC does not receive any
part of the fees charged by Mutual Funds.

The advisory fees and transaction charges do not cover charges imposed by third-parties for
investments held in the account, such as commissions or similar transaction-based fees, contingent
deferred sales charges or 12(b)-1 trails on mutual funds. In addition, each mutual fund or third
party investment manager charges asset management fees, which are in addition to the advisory
fees charged by the Firm. The fees charged by such funds or managers are disclosed in each fund’s
prospectus or Manager’s ADV Part 2A. The Management Fee also does not cover fees and charges
in connection with: debit balances; margin interest; odd-lot differentials; IRA fees; transfer taxes;
exchange fees; wire transfers; extensions; non-sufficient funds; mailgrams; legal transfers; bank
wires; postage; costs associated with exchanging foreign currencies; and SEC fees or other fees or
taxes required by law.

Although 34 Financial, LLC believes its fees are reasonable in light of the services provided,
clients should be aware that transaction fees may be higher than those otherwise available if
advisory services and brokerage services were provided separately for a discrete fee or if an
investment advisor were to select brokerage and negotiate commissions in the absence of the extra
consulting service provided. The comparison is dependent upon a number of factors, including the
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Item 7 – Types of Clients
34 Financial, LLC provides portfolio management services to individuals, corporations and
business entities, pension and profit-sharing plans, charitable institutions, foundations,
endowments, estates, trusts, and other U.S. and international institutions. There is no minimum
account size.