Advisory Investor Services LLC

Item 5 – Fees and Compensation

Adviser typically receives an annual management fee (from 0.75% to 2.00%) of the Net Asset Value
of the Account. All fees are negotiable.

The specific manner in which fees are charged by Adviser is established in each client’s written
agreement with Adviser. Generally, and pursuant to contract, fees for the management of Accounts
will be based upon a percentage of the total assets in the account (including margined assets).

Please be advised that Clients will pay higher fees for securities purchased on margin. This practice
creates an incentive for the adviser to engage in margin trading in order to increase its fee.

                             Basic Management Fee Schedule
                     Account Value                         Fee Percentage
                    Over $10,000,000                            0.75%
                $5,000,000 to $9,999,999                        1.00%
                $1,000,000 to $4,999,999                        1.50%
                 $250,000 to $999,999                           2.00%

Calculation and Deduction of Advisory Fees

With respect to accounts that Adviser manages on a discretionary basis, including the specialized
discretionary programs, clients are generally required to authorize Adviser to directly debit
management fees from client accounts quarterly. Fees for investment advisory services and other
non-discretionary programs are billed to clients, although frequently clients pre-authorize their
custodians to automatically deduct the fees from the client’s account and to make payment to
Adviser. Generally, advisory fees are deducted or billed, as applicable, quarterly in advance. In
certain cases, and based on restrictions imposed by some custodians, as Morgan Stanley, the firm
may deduct or bill, as applicable, advisory fees monthly or quarterly in arrears. As a result, clients
with multiple accounts under management may have different fee schedules deduction/invoicing
periods.

A client may pay more or less fees than similar clients depending on the particular circumstances of
the client, size, additional or differing levels of servicing or as otherwise agreed with specific clients.
Clients that negotiate fees, including a flat fee, may end up paying a higher fee than that set forth
above as a result of fluctuations in the client’s assets under management and account performance.

In the event the Adviser bills fees in advance, refunds are given on a prorated basis, based on the
number of days remaining in a quarter at the point of termination. The fee refunded will be the
balance of the fees collected in advance minus the daily rate* times the number of days in the
quarter up to and including the day of termination. (*The daily rate is calculated by dividing the
quarterly AUM fee by the number of days in the termination quarter). Clients may terminate their
contracts without penalty within 5 business days of signing the advisory contract. Advisory fees are

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withdrawn directly from the client’s accounts with client written authorization.

Additional Fee Information

Clients may authorize the Adviser to directly debit management fees from client accounts on a
quarterly basis. In such instances, management fees are prorated for each contribution and
withdrawal made during the applicable calendar quarter. Accounts initiated or terminated during a
calendar quarter will be charged a prorated fee. No prepaid fees are charged six months or more in
advance.

The firm will also provide the service of consulting for a fee based on assets under consulting, for
those families that want to be engaged on a quarterly analysis of their portfolios, cash flow, overall
economic strategy situation, access to custodial platform and/or consolidated reporting.

Alternatively, in some instances, clients may receive an invoice for fees, in which it may choose to
pay AIS directly for its billed fees for the relevant period.

Some of Adviser’s supervised persons accept compensation for the sale of securities or other
investment products, including asset-based sales charges or service fees from the sale of mutual
funds, in their individual capacities as registered representatives of non-affiliated broker dealer
Miura Capital LLC, (Miura). Supervised persons of Adviser do not receive such compensation with
respect to accounts managed or advised by Adviser.

Adviser’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which shall be incurred directly by the client. Clients may incur certain charges imposed
by custodians, brokers, and other third parties such as fees charged by fund managers, custodial
fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic funds
fees, and other fees and taxes on brokerage account and securities transactions. Mutual funds and
exchange traded funds also charge internal management fees, which are disclosed in a fund’s
prospectus. It is the Adviser’s policy not to accept “kick-backs” or retrocession fees from any third
non-affiliated party providing services to the Adviser’s clients; however, Adviser’s related persons,
including dually registered employees, may receive a portion of these commissions, fees and costs.
Advisor may receive trailers and new issue inception fees from mutual funds and issuers as a dually
(Advisor and Broker on record) registered person. Please refer to Items 10 and 12 for further
information on related parties and dually registered employees.

Please note that (1) AIS or our supervised persons may have an incentive to recommend
investment products based on the compensation received rather than on a client’s needs; and (2)
clients have the option to purchase investment products that we recommend through other
brokers or agents that are not affiliated with AIS.
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Item 7 - Types of Clients

AIS provides asset and/or portfolio management services to individual & high net worth
individuals, in some cases through their own Personal Investment Vehicles. The minimum dollar
value for establishing an Account is generally $1,000,000. Initial investments of a lesser amount
may be accepted at Adviser’s discretion.