Bluestone Financial Advisors LLC

Item 5: Fees and Compensation

We base our fees on fixed fees, described below.

Project (“Financing Planning & Consulting”)
Project fees for the Bluestone System are negotiable but generally range from $5,000 to
$10,000 per business owner or partner on a one-time basis. The actual fee varies depending
upon the level of complexity of the client’s financial affairs. The fee is charged in advance at the
commencement of each engagement. Your fee will be specified in your agreement. Upon early
termination of services, we will be responsible for issuing a refund to you for any unearned pre-
paid fees. Earned fees will be based on the number of deliverables provided at the time of
termination relative to the total number of deliverables specified in the agreement.

Retainer (“Financial Advisory”)
Retainer fees for the Bluestone System are negotiable but generally range from $1,000 to
$6,000 per business owner or partner on a monthly fixed fee basis. The actual fee varies
depending upon the level of complexity of the client’s financial affairs. The fee is charged in
advance at the beginning of each month. If your engagement for services begins during the
middle of a month, then your fee for that initial, partial month will be pro-rated and charged in
advance along with the full first month’s fee. Your initial payment to cover the initial partial
month and first full calendar month’s fee will be due at the time you execute the agreement for
services, and thereafter, we will invoice you at the beginning of each month. On or around
November 1st each year, Bluestone communicates to all clients the annual percentage fee
increase (“Fee Update”) applicable as of agreement anniversary dates occurring in the following
calendar year. Upon the twelve-month anniversary of your agreement effective date, and upon
completion of each subsequent twelve-month period, your monthly fixed fee shall be adjusted
for the Fee Update then in effect.

Investment Management Services
A portion of the fixed fee payable to us under the Retainer service is attributable to investment
management services (discretionary, non-discretionary, and assets under advisement). Such fee
is separate from and in addition to certain charges imposed by the Financial Institution(s) and
other third parties such as custodial fees, charges imposed directly by a mutual fund or
exchange traded fund in the account, which will be disclosed in the fund’s prospectus (e.g.,
fund management fees and other fund expenses), deferred sales charges, odd lot differentials,
transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage
accounts and securities transactions. Additionally, for assets outside of any wrap fee programs,
you may incur brokerage commissions and transaction fees. Such charges, fees and
commissions are exclusive of and in addition to our fee. However, we will not receive any
portion of these commissions, fees, and costs.

Retirement Plan Rollover Recommendations

As part of our investment advisory services to our clients, we may recommend that clients roll
assets from their employer’s retirement plan, such as a 401(k), 457, or ERISA 403(b) account
(collectively, a “Plan Account”), to an individual retirement account, such as a SIMPLE IRA, SEP
IRA, Traditional IRA, or Roth IRA (collectively, an “IRA Account”) that we will advise on the
client’s behalf. We may also recommend rollovers from IRA Accounts to Plan Accounts, from
Plan Accounts to Plan Accounts, and from IRA Accounts to IRA Accounts.

Clients are under no obligation, contractually or otherwise, to complete a rollover
recommended by Bluestone. Moreover, if clients do complete the rollover, clients are under no
obligation to have the assets in an IRA advised on by our firm. Due to the foregoing conflict of
interest, when we make rollover recommendations, we operate under a special rule that
requires us to act in our clients’ best interests and not put our interests ahead of our clients.’

Under this special rule’s provisions, we must:

   •    meet a professional standard of care when making investment recommendations (give
        prudent advice);
   •    never put our financial interests ahead of our clients’ when making recommendations
        (give loyal advice);
   •    avoid misleading statements about conflicts of interest, fees, and investments;
   •    follow policies and procedures designed to ensure that we give advice that is in our
        clients’ best interests;
   •    charge no more than a reasonable fee for our services; and
   •    give clients basic information about conflicts of interest.

Many employers permit former employees to keep their retirement assets in their company
plan. Also, current employees can sometimes move assets out of their company plan before
they retire or change jobs. In determining whether to complete the rollover to an IRA, and to
the extent the following options are available, clients should consider the costs and benefits of
a rollover. Note that an employee will typically have four options in this situation:

   1.   leaving the funds in the employer’s (former employer’s) plan;
   2.   moving the funds to a new employer’s retirement plan;
   3.   cashing out and taking a taxable distribution from the plan; or
   4.   rolling the funds into an IRA rollover account.

Each of these options has positives and negatives. Because of that, along with the importance
of understanding the differences between these types of accounts, we will provide clients with
an explanation of the advantages and disadvantages of both account types and document the
basis for our belief that the rollover transaction we recommend is in your best interests.

Item 7: Types of Clients

Our primary clients are entrepreneurs and business owners. Also, we provide investment
advice to the following types of clients: high-net worth individuals, corporations or business
entities, and charitable organizations.

Minimum Investment Amounts Required
There are no minimum investment amounts or conditions required for establishing an account
managed by us nor are there conditions required for contracting for our personal CFO services.
However, all clients are required to execute an agreement for services in order to establish a
client arrangement with us.