BKM Wealth Management LLC

Item 5 – Fees and Compensation

How We Are Compensated for Advisory Services

Fees vary among the different types of advisory services we offer and may be negotiated at BKM’s sole
discretion. The specific fees and manner in which fees are charged and calculated are described in your
investment advisory agreement. You should carefully review the investment advisory agreement prior to
signing it.

Fees for advisory services may be higher than fees charged by other advisors who offer similar services.
You may be charged different fees than similarly situated clients for the same services. You should
carefully review this, and any other brochure to understand the fees and other sources of compensation
that exist among BKM’s services prior to entering into an investment advisory contract with BKM. In
certain circumstances, all fees are negotiable.

Wealth Management

Fees for Wealth Management services include investment and portfolio management with financial
planning and consulting, assets held away and sub-advisory services to insurance products. Wealth
Management services are generally billed in advance each calendar quarter based on the market value
of the assets under management/advisement on the last day of the previous calendar quarter. The
graduated fee schedule is as follows:

                   Assets Under Management             Maximum Annual Advisory Fee

                   $0 - $1,000,000                     1.50%

                   $1,000,000 - $3,000,000             1.25%

                   Above $3,000,000                    Negotiable

Fees may be based on cumulative household assets under management. However, certain ERISA rules
prevent householding corporate plans with personal assets for fee reductions. Existing clients will be
grandfathered and charged according to their existing fee rate. You should refer to your advisory
agreement for your specific fee rate(s).

Fees for stand-alone Investment and Portfolio Management are not to exceed 1.50%. For investment
and portfolio management services BKM provides to certain clients or for specific client holdings (e.g.,
held-away assets, 529 plans, etc.), we may negotiate a fee rate that differs from the standard fee.

For client accounts held at a custodian that is not directly accessible by BKM, such as held-away assets,
BKM can manage those assets via a third-party platform which allows BKM to view and manage these
assets in a discretionary manner. Held-away assets will be included in the client’s total assets subject to
the fee in their agreement with BKM. However, as it might not be possible to directly debit the fees
from held-away accounts, those fees will be deducted from the client’s non-qualified accounts, pursuant
to the client’s authorization, or the client will be billed directly . The advisory fee calculation for held-
away assets, including insurance products, is assessed on the value of the account at the end of the
calendar quarter.

Insurance Consulting

BKM offers access to its Insurance Consulting services through DPL as part of the annual Wealth
Management fee. No additional fee is charged by BKM for access to these services. Annuity and
insurance products obtained through the insurance consulting service that have sub-accounts managed
by BKM will be included in the overall value of the relationship under your Wealth Management fee
structure.

Selection of Other Independent Managers

Fees for other Independent Managers used to manage all or a portion of a client’s account are set forth
by the Independent Manager and may be included or in addition to BKM’s fees. You should refer to the
Independent Manager’s Form ADV Part 2A Brochure for information on their fees and compensation.

Programs Offered Through Wells Fargo Advisors

Fees for advisory programs offered through Wells Fargo Advisors are inclusive of BKM’s and Wells Fargo
Advisors’ advisory fees and are as follows:

 Program                               Program Type                  Maximum Annual Advisory Fee
 Private Advisor Network               Separately Managed            $0 - $500,000: 1.75%
                                       Account                       Next $500,000: 1.50%
                                                                     Next $4,000,000: 1.25%
                                                                     Above $5,000,000: Negotiable

 Personalized Unified Managed          Unified Managed Account       1.75%
 Account

 FundSource®                           Mutual Fund Advisory          1.25%
                                       Program

You should refer to your advisory agreement for your specific fee rate(s).

Wells Fargo Advisors will calculate and directly debit advisory fees from the clients’ accounts for assets
within their programs. The value of assets held in any Wells Fargo Advisor program are included in the
amount of total household assets used to determine BKM’s advisory fees for other assets of a client that
are managed by BKM.

Financial Planning and Consulting Services

We will occasionally offer financial planning and/or consulting services which do not include plan
implementation, investment management or ongoing monitoring. In such instances there is typically a
$3,500 minimum fee for financial planning or consulting services; however financial planning and
consulting fees can be higher or lower based on individual factors and shall generally not exceed
$25,000 annually. Fees are billed on a fixed rate in advance and are due and payable as incurred. Fees
for financial planning and consulting services are due and payable as incurred. While financial planning
and consulting services are available on a stand-alone basis, certain services may also be rendered in
conjunction with investment portfolio management services at no additional cost as part of a
comprehensive portfolio management engagement.
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Item 7 – Types of Clients

BKM provides investment advisory services to individuals, high net worth individuals, retirement plans,
trusts, estates, family entities and businesses/corporations.

BKM generally requires a minimum initial investment of $250,000 for investment management services.
The firm, in its sole discretion, will accept clients based upon each client’s particular circumstances.

Certain Independent Managers may impose more restrictive account requirements than BKM. In such
instances, BKM may alter its corresponding account requirements to accommodate those of the
Independent Managers.