Beers Kight Financial Advisors LLC

Fees and Compensation

Compensation for Portfolio Management Services

        BKFA’s fees for portfolio management services are based on a fixed fee or a percentage
of assets under management. BKFA and each client will agree to the method used, which will be
stated in the investment advisory agreement.
        When BKFA’s fee is based on a percentage of assets under management (including
held-away assets) the following maximum fee schedule applies:

               Assets Under Management               Annual Fee
               First $250,000                        1.50%
               $250,001 - $500,000                   1.25%
               $500,001 - $750,000                   1.00%
               $750,001 - $1,000,000                 0.75%
               Over $1,000,000                       0.55%

         BKFA’s fees for portfolio management services are negotiable. BKFA considers client
facts, circumstances, and needs in determining the fees to be charged. Some of the considered
circumstances include the complexity of the client, the amount of assets to currently be placed
under management with BKFA, the amount of assets that may in the future be placed under
management with BKFA, related accounts, portfolio style, account composition, and reports.
The actual annual fee schedule will be identified on the investment advisory agreement between
BKFA and each client.
         BKFA generally manages securities portfolios with a minimum value of $300,000 and
generally charges a minimum annual fee of $3,000; however, these minimums are negotiable.
Some pre-existing clients may be subject to other minimum account requirements and advisory
fees that were in effect at the time the client entered into the advisory relationship.

Compensation for Pension Consulting Services

        BKFA’s maximum fees for pension consulting services are based on a percentage of
assets under management according to the following general schedule:

              Assets Under Management              Annual Fee
              First $250,000                       1.50%
              $250,001 - $500,000                  1.25%
              $500,001 - $750,000                  1.00%
              $750,001 - $1,000,000                0.75%
              $1,000,001 - $2,000,000              0.55%
              Over $2,000,001                      0.50%

The fees charged by BKFA for pension consulting services are negotiable. BKFA may charge
some client additional fees based on complexity. A total minimum fee of $5,000 is normally
required, but it can be negotiated.

Compensation for Financial Planning Services

         BKFA’s fees for financial planning services are determined based on the nature of the
services to be provided and the complexity of each client’s circumstances. All fees are agreed
upon and identified in a written investment advisory agreement with each client. Some financial
planning services are charged on an hourly-rate basis and others on a fixed-fee basis.
         Fees on an hourly-rate basis are calculated and charged based on the actual number of
hours worked at an hourly rate ranging from $100 to $150 per hour. Although the length of time
it will take BKFA to provide a financial plan will depend on each client’s personal situation,
BKFA will provide to the client an estimate of the total hours at the start of the advisory
relationship.
         Fixed fees generally range from $600 to $1,400; however, fixed fees may exceed these
amounts depending on the specific arrangement reached with the client and the complexity of the
plan.

How Clients Pay Investment Advisory Fees

         BKFA directly deducts its advisory fees for portfolio management services and pension
consulting services from each client’s account. BKFA prorates the annual fee and deducts it
quarterly from client accounts. Some clients pay this fee in arrears, while others pay it in
advance. The manner and time when the fee is paid is stated in the written investment advisory
agreement.
         For one-time financial planning services, BKFA may request a retainer upon completion
of its fact-finding session with the client; however, BKFA will not accept an advance payment
over $1,200 for work that will not be completed within six months. The balance is due

upon completion of the plan. For ongoing financial planning services, BKFA bills quarterly in
advance based on its total estimated financial planning fees.

Other Types of Fees and Expenses Clients May Pay

        Other than the advisory fees paid to BKFA, clients pay other fees and expenses, such as
brokerage and other transaction costs, custodial fees, and mutual fund expenses. Expenses
charged by mutual funds are described in the applicable fund prospectus and may include
payment to the manager of the mutual fund or other fund expenses. See the section titled
“Brokerage Practices” for additional information.
        Additionally, clients may incur costs to implement financial planning recommendations,
including, but not limited to, legal fees and insurance premiums. These costs are not paid to
BKFA, and clients incur these costs only if the client chooses to implement the recommended
financial plan and implementation of that financial plan requires the use of outside professionals
like an attorney or an insurance agent.

Payment of Investment Advisory Fees In Advance

        Some clients pay their fee for portfolio management services and pension consulting
services quarterly in advance. If the advisory agreement is terminated during a quarter, the client
will be entitled to a refund of prepaid advisory fees in proportion to the number of days
remaining in the quarter after termination to the total number of days in the quarter. Fees for
financial planning are determined on a project by project basis depending on the nature of the
services to be provided. If a client pays a financial planning fee based on the number of hours to
...

Types of Clients

        BKFA provides investment advisory services to individuals, pension and profit sharing
plans, trusts, estates, charitable organizations, corporations, and other business entities.
        As disclosed above, BKFA has a $300,000 minimum account value and a $3,000
minimum annual fee for portfolio management services; however, these minimums are
negotiable. BKFA also charges a minimum annual fee of $5,000 for pension consulting services,
but this minimum is also negotiable.

                Methods of Analysis, Investment Strategies, and Risk of Loss

        Investing in securities involves risk of loss that clients should be prepared to bear.
Although BKFA uses certain methods of analysis and investment strategies intended to reduce
that risk, these methods of analysis and investment strategies cannot eliminate the risk of loss.