Advanced Advisor Group LLC

Item 5 – Fees and Compensation

AAG generally collects a calendar quarterly fee, in advance, for its advisory services based
upon the gross value of your managed assets at the beginning of the relevant quarter, in
accordance with AAG’s Fee Schedule. To minimize the administrative burden associated
with managing many accounts, your first quarterly fee is not charged until the beginning of
the first full calendar quarter after you retain AAG (in other words there is no fee charged
for any stub quarter period when you first retain AAG), but in return you agree and
acknowledge that if you terminate this Agreement as of any date other than the end of a
calendar quarter you will not receive a refund of any pre-paid fees for the remainder of
such quarter unless you provide written notice to AAG claiming such refund within thirty
(30) calendar days of the effective date of such termination, however, AAG reserves the
right to retain refund amounts of less than $25. In addition, the Company does not adjust
advisory fees to reflect deposits or withdrawals as of any date other than the beginning of a
quarter. AAG will automatically withdraw from managed accounts the appropriate fee
unless both parties agree upon other arrangements. If AAG receives notice that an account
is “blocked” and investment recommendations cannot be implemented, AAG will
discontinue charging fees against that account until the block is removed. Notice of
blocked accounts occurs on a quarterly basis during the fee billing process. If an account is
blocked at the time of billing and no advisory fee is deducted, no refund will be applicable.
In certain circumstances, custodial restrictions associated with a blocked account may limit
the AAG’s ability to process a refund directly from the account while the restriction
remains in place. In such cases, the matter will be escalated and reviewed by the
Compliance Department to determine an appropriate resolution.

Asset-based fees are generally not negotiable and are assessed based on a percentage of the
dollar amount of assets under management. The Company does not adjust advisory fees to
reflect mid-quarter deposits or withdrawals. The Company does not deduct the balance of
outstanding loans taken against client accounts when calculating advisory fees. Deviation
from the fee schedule will be subject to prior approval by the Compliance Department.
Deviations from the fee schedule may also be available pursuant to the terms of an
approved fee waiver request, Request for Proposal (RFP), or plan-level agreement with
your employer, if applicable.

                                Advanced Advisor Group, LLC

                                    www.efsadvisors.com

                                      Standard Fee Schedule

                                                           Quarterly Fee      Annual Fee
                                  $0.00 -     $210,000         0.26%            1.04%
                              $210,001 -      $500,000         0.24%            0.96%
                              $500,001 - $1,000,000            0.22%            0.88%
                            $1,000,001    - $3,000,000         0.20%            0.80%
                            $3,000,001 - $5,000,000            0.18%            0.72%
                           $5,000,001 - $10,000,000            0.17%            0.68%
                               $10,000,001 and higher          0.15%            0.60%

           Non-asset management consulting services        up to $350/hour (negotiable)

                                 *Fixed Only Fee Schedule

                                                             Quarterly Fee       Annual Fee

                                       $0.00 - $99,999           0.15%             0.60%

                                      $100,000 and higher        0.09%             0.36%

*Fixed Income and Cash Management Accounts include a limited selection of investments,
such as CDs, money market accounts, and certain preapproved, limited funds. If the
account contains investments outside of these options, the standard fee schedule applies.

Under limited circumstances when a fee is due, the client’s account holdings, balance, and
fee size make it in the client’s best interest to carryover the fee to a later period or waive
the fee entirely. These circumstances are limited and may be subject to approval by
compliance and/or the individual advisor representative. For example, a client may hold a
small stock position and no cash in an account and liquidating the stock to pay the fee may
incur transaction fees in excess of the advisory fee due.

                                Advanced Advisor Group, LLC

                                    www.efsadvisors.com

AAG fees generally cover AAG’s advisory services. Certain non-advisory clients could pay
administrative fees of 0.09% quarterly, totaling 0.36% annually, to AAG for non-advisory
services such as record keeping. Clients should also expect to pay additional charges
imposed by custodians, brokers, third party portfolio managers, third party administrators,
and other third parties including management fees charged by fund and Exchange Traded
Fund managers, fees charged by custodians to hold securities for safekeeping, deferred
sales charges (charges incurred by some mutual funds at the time the client sells the
shares), odd-lot differentials (charges incurred on securities orders in quantities other than
some multiple of 100 shares), transfer taxes, wire transfer and electronic fund fees, and
other fees and taxes on brokerage accounts and securities transactions. Mutual funds and
exchange traded fund internal management fees are disclosed in each fund’s prospectus.

AAG’s president and investment adviser representatives also sell securities products for
sales commissions through AAG’s Broker/Dealer platform (hereafter referred to as
...

Item 7 – Types of Clients

AAG provides investment advice to individuals, business entities, charitable organizations,
estate, and trust programs.