Capitol Financial Consultants Inc

Item 5. Fees and Compensation

CFC is compensated for its services through fees that are based on either a percentage of capital at work plus
income, a percentage of assets under supervision, a flat fee, an hourly rate, or a combination of these methods.

The fee will be based on the needs of the client, the complexity of each financial situation, and the complexity and
size of the investment portfolio. The fees for ongoing service are specified in the Financial Advisory Contract (FA),
the Asset Management Contract (IA), Flat Fee Contract (FF), or the Hourly Consulting Agreement (HA) delivered
to the client and signed by the client. There is no minimum fee for these services.

Fees are normally either debited from an approved money market account or paid by check. We provide clients
with an invoice showing the amount of each fee. Other methods of fee payment may be accepted.

COMPREHENSIVE FINANCIAL PLANNING FEES (FA)

Dollar Amount of “Gross Income” and Capital at Work”                     Percentage Fee
First $1,000,000                                                         1.00%
Next $2,000,000                                                          0.75%
Remaining balance greater than $3,000,000                                0.50%

A deposit of $500 is received upon execution and at each anniversary of the financial planning contract and the
balance is due upon completion of the comprehensive plan. You have the right to terminate an agreement within five
(5) business days without penalty. Thereafter, the deposit is nonrefundable.

Comprehensive financial planning fees include ongoing investment management for accounts that grant us
discretionary or nondiscretionary authority.

Gross income is defined as total income from personal services (salary, bonus, commission), net business income after
debt service but before depreciation and other non- cash flow expenses, interest income, dividend income, gifts and
inheritances, annuity income, social security income, net rental income after debt service but before depreciation and
other non-cash flow expenses, and all other sources of cash flow.

Capital at work is defined as net worth minus equity in your residence and property not held for investment purposes.

ASSET MANAGEMENT FEES (IA)

Dollar Amount of Investable Assets (IA)                          Percentage Fee
First $1,000,000                                                        1.00%
Next $2,000,000                                                         0.75%
Remaining balance greater than $3,000,000                               0.50%

Ongoing fees for Asset Management services will be assessed quarterly in arrears.

FLAT FEE (FF):

The Flat Fee charged for planning and related services will vary depending on the complexity of the client’s financial
situation and the planning services to be provided. A deposit of $500 is received upon execution and at each
anniversary of the financial planning contract and the balance is due upon completion of the project. You have the
right to terminate an agreement within five (5) business days without penalty. Thereafter, the deposit is
nonrefundable. This fee is negotiated and agreed to prior to the commencement of the engagement.

HOURLY FINANCIAL CONSULTING (HA):

The Hourly Rate for financial consulting and planning services is $425.00. Hourly Consulting clients are provided
with an invoice detailing the services provided and the calculation of the amount due.

Payment for ongoing Asset Management services is collected quarterly in arrears. Payment for Comprehensive
Financial Planning, Hourly Consulting and/or Flat Fee Financial Planning services are typically due upon completion
of the planning services but may be collected in installments over a period of time as negotiated by the client and
indicated in their contract.

Wrap fee accounts, further described in the CFC Wrap Fee Brochure, are subject to the same fee schedule as non-
wrap fee accounts. As such there are no additional fees for a wrap fee account as opposed to a non-wrap fee
account. In order to evaluate whether a wrap fee account is appropriate for you, you should compare the agreed
upon wrap fee program with the amounts that would be charged by other advisers, broker-dealers, and custodians
for advisory fees, brokerage and execution costs, and custodial services comparable to those provided under our
Wrap Fee Program. If you choose to enter into the CFC wrap fee arrangement, your total cost to invest could
exceed the cost of paying for brokerage and advisory services elsewhere.

Conflict of Interest: When managing a client’s account on a wrap fee basis, CFC receives as compensation for our
advisory services, the balance of the total wrap fee you pay after custodial, trading and other management costs
(including execution and transaction fees) have been deducted. Accordingly, we have a conflict of interest because
we have a financial incentive to maximize our compensation by seeking to reduce or minimize the total costs
incurred in your account(s) subject to a wrap fee. For example, our wrap fee arrangement creates incentives for
our advisers to trade less frequently or select investments that reduce our costs, and in some cases increase
expenses that are borne by the client. We are available to discuss execution-related pricing with you for any
custodian we use to hold your assets so that you can compare the total costs of entering into a wrap fee
arrangement versus a non-wrap fee arrangement.

Methods of payment other than specified may be negotiated. All fees are made payable to, “Capitol Financial
Consultants, Inc.”.

We do not participate in management fees or custodian fees charged by mutual funds, retirement plan custodians,
or nonaffiliated investment managers, and such fees are separate from fees described under the Agreement.

A client may terminate a contract in writing within 5 business days of execution for a full refund. Thereafter, that
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Item 7. Types of Clients

CFC provides portfolio management services to individuals, high net worth individuals, trusts, estates, charitable
organizations or trusts, and small businesses.