Daniel KRUG & Associates Inc

Item 5 Fees and Compensation
In addition to the information provided in Item 4 - Advisory Business, this section provides additional
details regarding our firm's services along with descriptions of each service's fees and compensation
arrangements. It should be noted that lower fees for comparable service may be available from other
sources. The exact fees and other terms will be outlined in the agreement between you and Daniel
Krug & Associates.

Daniel Krug & Associates believes that our annual fees are reasonable in relation to: (1) services
provided and (2) the fees charged by other investment advisers offering similar services/programs.
However, our annual investment advisory fee can be higher than that charged by other investment
advisers offering similar services/programs.

Investment Management Services – Unaffiliated Wrap Fee Program

Clients participating in our Investment Management services will be part of the AssetMark Platform and
it’s Wrap Fee Program, where you are charged one fee which includes AssetMark’s platform fee, sub-
advisory fees and our fees. AssetMark will bill the entire fee quarterly in advance and will pay us our
portion of the fee. We may modify our fee schedule from time to time upon thirty (30) days’ prior
written notice to you. AssetMark’s fee is based upon the client’s assets under management and is
charged quarterly in advance. You may terminate our agreement and the agreement with AssetMark
(“CSA”) at that time if you do not accept the changes to our fee schedule. Clients should review
AssetMark’s fees and compensation disclosures in the CSA and the Wrap Fee Program Brochure.

Fees are prorated (based on the number of days service is provided during the initial billing period) for

your Account opened at any time other than the beginning of the billing period. If investment
management services are commenced in the middle of a billing period, the prorated fee for the initial
billing period is billed in arrears at the same time as the next full billing period's fee is billed.

The Daniel Krug & Associates services continue in effect until terminated. Either you or Daniel Krug &
Associates may terminate the services by providing written notice effective thirty (30) days after the
written notice is received. Any prepaid, unearned fees will be promptly refunded by Daniel Krug &
Associates to you. Fee refunds will be determined on a pro rata basis using the number of days
services are actually provided during the final period.

Fees charged for the AssetMark Platform are negotiable and will therefore vary on a client-by-client
basis. Fees are negotiable based on the investment adviser representative providing the services, the
type of client, the complexity of the client's situation, the potential for additional Account deposits, the
relationship of the client with the investment adviser representative, and the total amount of assets
under management for the client.

The total fee incurred by clients in the AssetMark Platform will not exceed 2.50% annually. While our
clients that participate in the AssetMark Platform are charged one fee as described above, the
following is a description of how the fees are determined.

Daniel Krug & Associates’ standard fee schedule is as follows.

                         Assets Under Management                    Annual Fees
                         First $1.00 - $250,000                     1.40%
                         Next $250,001 - $1,000,000                 1.25%
                         Next $1,000,001 - $2,000,000               .95%
                         Next $2,000,001 - $5,000,000               .65%
                         Next $5,000,001 and up                     Negotiable

For example, if someone has $500,000 in portfolios with us, the first $250,000 is charged at 1.40%,
and the next $250,000 is charged at 1.25% resulting in a blended fee of 1.32%.

All accounts managed by Daniel Krug and Associates will also incur a 0.15% platform fee unless the
client elects to use Sub-Adviser(s). If any portion of the client's assets are managed by Sub-Adviser(s),
the platform fee is waived, and the Sub-Adviser(s) will charge a management fee in addition to Daniel
Krug & Associates' fees. The total fee charged by Sub-Adviser(s) will not exceed 1.10%.

Our portion of the overall investment advisory fee will be calculated and deducted from your account
by AssetMark and paid directly to our firm by the qualified custodian(s) of your account. You will
authorize the qualified custodian(s) of your account to deduct fees from your account and pay such
fees directly to our firm.

The qualified custodian will also calculate and debit the Sub-Adviser(s) fee from your Account(s). The
qualified custodian will calculate the fee based on the client fee schedule, the amount of assets under
management, and the time period covered by the fee.

You should review your Account statements received from your custodian and verify that appropriate
investment advisory fees are being deducted.

Accounts that are managed outside of a wrap fee program would be subject to brokerage and other
transaction costs. However, for accounts under the wrap fee program, all brokerage commissions
and/or transaction ticket fees charged by the custodian are billed directly to Daniel Krug & Associates
and paid by us.

In addition, you will incur certain charges imposed by third parties other than Daniel Krug & Associates
in connection with investments made through your Account including, but not limited to, mutual fund
sales loads, 12b-1 fees and surrender charges, variable annuity fees and surrender charges, IRA and
qualified retirement plan fees, and non-transaction charges imposed by the custodian.

Item 7 Types of Clients
Daniel Krug & Associates generally provides investment advice to the following types of clients:

     • Individuals
     • High Net Worth Individuals

You are required to execute a written agreement with Daniel Krug & Associates specifying the
particular advisory services in order to establish a client arrangement with Daniel Krug & Associates.

In general, we require a minimum of $500,000.00 to open and maintain an advisory account. At our
discretion, we may waive this minimum account size. For example, we may waive the minimum if you
appear to have significant potential for increasing your assets under our management.

We may also combine account values for you and your minor children, joint accounts with your
spouse, and other types of related accounts to meet the stated minimum.