EKON Advisors LLC

Item 5 – Fees and Compensation

Advisory Services Fees

Portfolio Management

In connection with its portfolio management services, Ekon Advisors charges annual asset-
based fees, generally ranging from 0.5% to 1.0% of the value of the plan’s assets, however
discounts are provided based on Client assets. In lieu of asset-based fees, we may agree to a
flat dollar fee structure for portfolio management services.

Fees are negotiated based on the size and complexity of the plan, among other things. These
fees are either directly debited from the Client’s account by the record-keeper, TPA, or
custodian or billed directly to the Client, in arrears.

Consulting

In connection with its consulting services, Ekon Advisors charges annual asset-based fees,
generally ranging from 0.25% to 0.90% of the value of the plan’s assets, however discounts
are provided based on Client assets. In lieu of asset-based fees, we may agree to a flat dollar
fee structure for consulting services.

Fees are negotiated based on the size and complexity of the plan, among other things. These
fees are either directly debited from the Client’s account by the record-keeper, TPA, or
custodian or billed directly to the Client, in arrears. Providing recommendations regarding
portfolios or advising on and preparing Investment Policy Statements are consulting
services and therefore are billed based on the above Consulting schedule.

Recordkeeping & Third-Party Plan Administration Fees

Ekon Advisors does not act as record-keeper or third-party administrator and therefore
receives no compensation for such services. However, our affiliated firm, QBC, Inc. may act
as the record-keeper and/or third-party administrator for Clients. In connection with its
administrative and recordkeeping services, QBC, Inc. is engaged directly by the Client and it’s
fees vary based on the complexity of the plan’s design, service level requested by the plan
sponsor, the number and frequency of the plan sponsor’s payroll transactions and plan
sponsor’s ability to provide complete and accurate payroll data in electronic format. QBC,
Inc. may charge a base fee, per participant fee, an hourly rate or an asset-based fee or a
combination of those fees. In addition, QBC, Inc. may receive sub-transfer agent or
accounting fees directly from investment firms.

The relationship between Ekon Advisors and QBC, Inc. creates an inherent conflict of
interest. This conflict is mitigated through full disclosure to Clients regarding the presence
of a potential conflict, the compensation received by each party, and the duties performed
by each party. Clients may experience reduced fees due to efficiencies created by using an
affiliated record-keeper and/or third-party administrator.

Other Fees

Fees charged by Ekon Advisors are in addition to any brokerage, custodial and/or other fees
that may be charged to Clients by other service providers. Should Ekon Advisors receive any
fee attributable to a RP or Client (such as distribution and/or service fees, 12b-1 fees, or
accounting, transfer agent and similar administrative expenses), which is in addition to the
agreed upon fee, the amount of that additional fee will either be credited directly to the RP
or Client or offset or otherwise applied to reduce the fee.

Other Revenue
Certain management persons and IARs of Ekon Advisors are also licensed as registered
representatives of Mutual Securities, Inc., a FINRA Member broker-dealer (CRD #13092 and
SEC #8-28580). In addition, our affiliated firm QBC, Inc., may initiate fund transactions
through National Securities Clearing Corporation (“NSCC”) at the direction of the Client.
Acting in that capacity, QBC, Inc. can implement transactions for our Clients. In so doing,
QBC, Inc. may earn separate compensation in the form of sub-transfer agent or accounting
fees.
While the registered representatives of Mutual Securities, Inc. endeavor at all times to put
the interest of the Clients first, as part of Ekon Advisor’s fiduciary duty, Clients should be
aware that the practice of accepting commissions for the sale of securities and insurance
products creates an incentive to recommend products based on compensation received. To

mitigate this potential, our dually registered persons, as fiduciaries, disclose this to you and
shall act in the Client’s best interest at all times.
General information on fees

Ekon Advisor’s fees are not calculated on the basis of shares of capital gains or capital
appreciation of any Client’s investments. There is no minimum account size. Clients are
billed quarterly, in arrears, or as provided in the service agreement. It is the Client’s
responsibility to verify the fee calculation. Neither the plan custodian nor record-
keeper/TPA for the RP verifies Ekon Advisor’s fee calculation. In some cases, the RP
Trustees/Sponsors will calculate the fee, as agreed upon in the advisory agreement.

All fees paid to Ekon Advisors are separate and distinct from fees and expenses charged by
mutual funds and their shareholders. These fees and expenses are described in each fund’s
prospectus. These fees will generally include a management fee, other mutual fund
expenses, and a possible distribution fee. If the fund also imposes sales charges, a Client
may pay an initial or deferred sales charge. A Client could invest in a mutual fund directly
without the services of Ekon Advisors. In that case, the Client would not receive the services
provided by Ekon Advisors. Ekon Advisor’s services are designed, among other things, to
assist the Client in providing plan participants with a qualified retirement plan that permits
adequate opportunities to accumulate funds for retirement and that complies with the
standards required under ERISA and the Internal Revenue Code.

ERISA Accounts

Ekon Advisors is deemed to be a fiduciary to advisory Clients that are employee benefit plans
or individual retirement accounts (IRAs) pursuant to the Employee Retirement Income and
...

Item 7 – Types of Clients

Ekon Advisors offers non-discretionary and discretionary investment advisory services
geared primarily for the Sponsors and Trustees of the Retirement Plans (hereinafter “RPs”)
including, but not limited to, Defined Benefit Plans, Pension Plans, Profit Sharing Plans,
403b, 457 and 401(k) Plans.

Ekon Advisors does not require minimum account size or minimum fees. However, a fee for
small clients may be written into the individual client’s agreement.