Arbor Financial Services LLC

Item 5 Fees and Compensation
Investment Advisory/Wrap Fee Program Fees
We use the pricing schedules below to determine the overall blended rate that is charged. Once the
blended rate is established it will not change later based on deposits and withdrawals or changes in
account value. Although the fee rate will not change, the account value will be adjusted based upon the
current value of assets under management. Our annual fee is based upon a percentage of assets
under management, and varies depending upon the type of model you are invested in (i.e. Equity and
Balanced, Fixed Income, Mutual Fund Allocation). In special circumstances, and in our sole discretion,
we may negotiate a lesser management fee based upon certain criteria (i.e., anticipated future earning
capacity, anticipated future additional assets, dollar amount of assets to be managed, related accounts,
account composition, pre- existing client relationship, account retention, pro bono activities, etc.).

Fees for our Wrap Fee Program are as follows:

Market Value of Portfolio               Equity & Balanced
First $500,000                          3.00%
Next $500,000                           2.50%
Next $1,000,000                         2.00%
Over $2,000,000                         1.60%

Market Value of Portfolio                Fixed Income
First $500,000                           1.50%
Next $500,000                            1.25%
Next $1,000,000                          1.00%
Over $2,000,000                          0.75%

Market Value of Portfolio               Mutual Fund Allocation
First $500,000                          1.50%
Next $500,000                           1.25%
Next $1,000,000                         1.00%
Over $2,000,000                         0.75%

Fees for our non-wrap fee management services are as follows:

Market Value of Portfolio                Equity & Balanced
First $500,000                           2.00%
Next $500,000                            1.50%

Next $1,000,000                          1.00%

Over $2,000,000                          0.75%

Market Value of Portfolio                 Fixed Income
First $500,000                            1.25%
Next $500,000                             1.00%
Next $1,000,000                           0.85%
Over $2,000,000                           0.75%

Market Value of Portfolio                  Mutual Fund Allocation
First $500,000                             1.25%
Next $500,000                              1.00 %
Next $1,000,000                            0.85%
Over $2,000,000                            0.75 %

You will be charged an overall blended fee that is based on your initial account opening balance. The
blended asset-based management fee is determined by looking at your total assets under
management, calculating the fee for each market value of portfolio range listed above, and ultimately
blending the fee. Once determined, the fee is prorated and paid quarterly, in advance, based upon the
market value of the assets under our management on the last business day of the previous calendar
quarter. If the management agreement is executed at any time other than the first day of a calendar
quarter, our fees will apply on a pro rata basis, which means that the advisory fee is payable in
proportion to the number of days in the quarter for which you are a client.

The separate agreement you sign with LPL for custodial and brokerage services may authorize our
firm through LPL to debit your account for the amount of our fee and to directly remit that management
fee to our firm in accordance with applicable custody rules. LPL must agree to send a statement to
you, at least quarterly, indicating all amounts disbursed from your account including the amount of fees
paid directly to our firm.

You may terminate the management agreement upon written notice to our firm. If you have pre-paid
advisory fees that we have not yet earned, you will receive a prorated refund of those fees.

Financial Planning/Consulting Services Fees
Prior to engaging our firm to provide separate financial planning and/or consulting services, you will
generally be required to enter into a separate written agreement that sets forth the terms and
conditions of the engagement and describes the scope of the services to be provided, and the fees to
be paid. Our fees for these services may consist of a fixed fee, an hourly fee, or a combination thereof.
Currently, fixed fees range from $500 to $5,000 and hourly fees range from $100 to $500. Our financial
planning fees are negotiable and payable on completion of the contracted services. An estimate of the
total cost will be determined at the start of the advisory relationship. In limited circumstances, the
cost/time could potentially exceed the initial estimate. In such cases, we will notify you and may
request that you pay an additional fee.

Either party may terminate the agreement by providing written notice to the other party. You will incur a
pro rata charge for services rendered prior to the termination of the agreement. If you have pre-paid
advisory fees that we have not yet earned, you will receive a prorated refund of those fees.

Additional Fees and Expenses
The custodian holding your funds and securities may, on occasion and solely at their discretion, charge
fees to you for other services you request in addition to the compensation they receive for custodial
services (such as wire transfers or bill pay fees) provided to you.

As part of our investment advisory services to you, we may invest, or recommend that you invest, in
mutual funds and exchange traded funds. The fees that you pay to our firm for investment advisory
services are separate and distinct from the fees and expenses charged by mutual funds or exchange
traded funds (described in each fund's prospectus) to their shareholders. These fees will generally
include a management fee and other fund expenses. You will also incur transaction charges and/or
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Item 7 Types of Clients
We currently offer investment advisory services to individuals, including high net worth individuals,
trusts, and estates. In general, we do not require a minimum dollar amount to open and maintain an
advisory account; however, we have the right to terminate your account if it falls below a minimum size
which, in our sole opinion, is too small to effectively manage.