Backbone Planning Partners LLC

ITEM 5: FEES AND COMPENSATION

Financial Planning

Because financial planning engagements are an ongoing process, each fee is determined at the outset and is
intended to be an annual fee. The financial planning fee can range from $500 to $15,000 depending upon
various factors including, but not limited to, the complexity of the planning involved. The annual fee may be
paid in monthly or quarterly installments and may be debited from the client’s asset management account(s)
or separately invoiced and payable by check. In the asset management fees paid to BPP may mitigate or
eliminate the renewal fee. BPP may choose to charge clients on an hourly basis with a fee range of $250-500
per hour, depending upon the professional performing the services.

Asset Management

BPP’s standard advisory fee is based on a percentage of the assets under management and ranges from 0-
1.5%. Advisory fees are directly debited from client accounts. Fees are billed quarterly, in advance, based
on the gross value of the assets as of the last business day of the previous quarter.

The value used for calculating BPP’s asset management fees will include the value of any cash or cash-like
instruments unless the Client has specifically directed in writing that the cash is not to be invested. Any pre-
paid advisory fees that are not earned (if any) shall be refunded to the Client if our advisory contract is
terminated before the end of the billing period.

Lower fees for comparable services may be available from other sources.

Business Strategic Planning

Business strategic planning fees are charged on an annual basis and paid in either monthly or quarterly
installments, depending upon the specific engagement. Annual fees range from $5,000 to $50,000 a year but
may be higher than this range if the case is sufficiently complex or the client wishes to have more contact with

their BPP professional. Strategic planning fees may be debited from the client’s asset management account(s)
or separately invoiced and payable by check.

Business Succession Planning

Typically bundled with financial planning services, the cost for business succession planning ranges from
$5,000 to $50,000 per year. This fee is based on an annual rate which is payable in either monthly or quarterly
installments, depending upon the specific engagement. Succession planning fees may be debited from the
client’s asset management account(s) or separately invoiced and payable by check.

Compensation for the Sale of Securities

Certain professionals of BPP are separately licensed as independent insurance agents. As such, these
professionals may conduct insurance product transactions for BPP clients, in their capacity as licensed
insurance agents, and will receive customary commissions for these transactions in addition to any
compensation received in his capacity as employees of BPP. Commissions from the sale of insurance
products will not be used to offset or as a credit against advisory fees. These professionals therefore have
incentive to recommend insurance products based on the compensation to be received, rather than on a
client’s needs. The receipt of additional fees for insurance commissions is therefore a conflict of interest, and
clients should be aware of this conflict when considering whether to engage BPP or utilize these professionals
to implement any insurance recommendations. BPP attempts to mitigate this conflict of interest by disclosing
the conflict to clients and informing the clients that they are always free to purchase insurance products
through other agents that are not affiliated with BPP, or to determine not to purchase the insurance product at
all. BPP also attempts to mitigate the conflict of interest by requiring employees to acknowledge in the firm’s
Code of Ethics, their individual fiduciary duty to the clients of BPP, which requires that employees put the
interests of clients ahead of their own.

ITEM 7: TYPES OF CLIENTS

We provide services to businesses, business owners, individuals, pension and profit-sharing plans, and high-
net-worth individuals. There is no minimum to become a client of BPP.