EFS Advisors LLC

Item 5 – Fees and Compensation

EFS generally collects a calendar quarterly fee, in advance, for its advisory services based
upon the gross value of your managed assets at the beginning of the relevant quarter, in
accordance with EFS’s Fee Schedule. To minimize the administrative burden associated
with managing many accounts, your first quarterly fee is not charged until the beginning of
the first full calendar quarter after you retain EFS (in other words there is no fee charged
for any stub quarter period when you first retain EFS), but in return you agree and
acknowledge that if you terminate this Agreement as of any date other than the end of a
calendar quarter you will not receive a refund of any pre-paid fees for the remainder of
such quarter unless you provide written notice to EFS claiming such refund within thirty
(30) calendar days of the effective date of such termination, however, EFS reserves the
right to retain refund amounts of less than $25. In addition, the Company does not adjust
advisory fees to reflect deposits or withdrawals as of any date other than the beginning of a
quarter. EFS will automatically withdraw from managed accounts the appropriate fee
unless both parties agree upon other arrangements. If EFS receives notice that an account
is “blocked” and investment recommendations cannot be implemented, EFS will
discontinue charging fees against that account until the block is removed. Notice of
blocked accounts occurs on a quarterly basis during the fee billing process. If an account is
blocked at the time of billing and no advisory fee is deducted, no refund will be applicable.
In certain circumstances, custodial restrictions associated with a blocked account may limit
EFS’s ability to process a refund directly from the account while the restriction remains in
place. In such cases, the matter will be escalated and reviewed by the Compliance
Department to determine an appropriate resolution.

Asset-based fees are generally not negotiable and are assessed based on a percentage of the
dollar amount of assets under management. The Company does not adjust advisory fees to
reflect mid-quarter deposits or withdrawals. The Company does not deduct the balance of
outstanding loans taken against client accounts when calculating advisory fees. Deviation
from the fee schedule will be subject to prior approval by the Compliance Department.
Deviations from the fee schedule may also be available pursuant to the terms of an

                                     EFS Advisors LLC

                                   www.efsadvisors.com

approved fee waiver request, Request for Proposal (RFP), or plan-level agreement with
your employer, if applicable.

                                  Standard Fee Schedule

                                                           Quarterly Fee    Annual Fee
                                $0.00 - $210,000               0.26%          1.04%
                            $210,001 - $500,000                0.24%          0.96%
                            $500,001 - $1,000,000              0.22%          0.88%
                          $1,000,001 - $3,000,000              0.20%          0.80%
                          $3,000,001 - $5,000,000              0.18%          0.72%
                         $5,000,001 - $10,000,000              0.17%          0.68%
                             $10,000,001 and higher            0.15%          0.60%
            Non-asset management consulting services       up to $350/hour (negotiable)

                                *Fixed Only Fee Schedule

                                                            Quarterly Fee      Annual Fee

                                       $0.00 - $99,999         0.15%            0.60%

                                      $100,000 and higher      0.09%            0.36%

*Fixed Income and Cash Management Accounts include a limited selection of investments,
such as CDs, money market accounts, and certain preapproved, limited funds. If the
account contains investments outside of these options, the standard fee schedule applies.

Clients participating in the Managed by EFS program through Security Benefit Group are
charged 0.96% from $0-$500,000 in assets under management. In the event assets exceed
$500,000, the applicable fee will follow the “Standard Fee Schedule”.

EFS Advisors Choice clients with account balances under $25,000 will pay EFS an
administrative fee of $14 per year, to be deducted from their account balances at a rate of
$3.50 per quarter. This administrative fee is in addition to the asset-based advisory fee per
the schedule above.

                                      EFS Advisors LLC

                                    www.efsadvisors.com

Under limited circumstances when a fee is due, the client’s account holdings, balance, and
fee size make it in the client’s best interest to carryover the fee to a later period or waive
the fee entirely. These circumstances are limited and may be subject to approval by
compliance and/or the individual advisor representative. For example, a client may hold a
small stock position and no cash in an account and liquidating the stock to pay the fee may
incur transaction fees in excess of the advisory fee due.

EFS fees generally cover EFS’ advisory services. Certain non-advisory clients pay
administrative fees of 0.09% quarterly, totaling 0.36% annually, to EFS for non-advisory
services such as record keeping. Clients should also expect to pay additional charges
imposed by custodians, brokers, third party portfolio managers, third party administrators,
strategy managers, separately managed account (“SMA”) providers and other third parties.
These may include management fees charged by fund and Exchange Traded Fund
managers; custodial platform or administrative fees; fees charged by custodians to hold
securities for safekeeping; deferred sales charges (charges incurred by some mutual funds
...

Item 7 – Types of Clients

EFS provides investment advice to individuals, business entities, charitable organizations,
qualified retirement plans, estate, and trust programs.