Equity Advisors of Kentucky Inc

Item 5-Fees and Compensation
Management Fees

EAK is compensated for financial planning by charging a fee. This fee is quoted as an annual fee. Fees
are paid quarterly in advance, calculated at a rate of one-fourth of the annual fee, rounded down to the
next $25 when the fee is determined. The first payment is due and payable upon execution of the
Agreement. Subsequent fees are paid quarterly (three months after the previous quarterly fee). Partial
quarter billings are calculated on a pro-rata basis. The following schedule reflects the maximum
management fees we charge.

         Assets             Fees Rate           Quarterly          Alternative 1        Alternative 2
                                                                     Plus 5%             Plus 10%
                                                                   Appreciation         Appreciation
    Under $400,000           $5,000          $1,250 Quarter             N/A                 N/A
    To $1,000,000            1.30%            as calculated             N/A                 N/A
    To $2,500,000            1.00%            as calculated           0.800%               0.25%
    To $5,000,000             .90%            as calculated           0.700%               0.20%
    To $7,500,000             .70%            as calculated           0.525%               0.15%

    Over $7,500,000            .60%             as calculated           0.375%                0.10%

Under Alternatives 1 and 2, fixed fees are lower and a portion of the growth, net of fees, is paid at year
end. Under these alternatives, client expense is lower if investment values fall, and can be more if
assets grow. Alternative 1 utilizes a permanent High Watermark method to calculate appreciation
while alternative 2 resets the high watermark annually. Please see section 6 for further details.
Note: Effective March 31, 2018, Alternative 2 is only offered to clients who utilized this option in the
previous year. Once a client moves away from Alternative 2, they cannot establish a new alternative 2
agreement.
Fees are billed quarterly in the month of the client’s quarterly meeting. In the case of some long-term
clients, lower fees are charged, and occasionally fees are bartered for client services. In special
circumstances, work is performed on a pro bono basis. Our advisory fee is negotiable, depending on
individual client circumstances.
All management fees are deducted, with client permission, from the managed accounts, according to
their proportion to the total investment portfolio. Fees based on retirement assets are deducted from
retirement accounts, on a pre-tax basis, in accordance with SEC regulations. Clients are mailed a fee
calculation invoice.
The account custodian also notifies the client of the fee deduction.
Clients may cancel the Asset Management Agreement at any time with written notice to the firm. In
the event of a cancellation, no further fixed fees will be due, and the client may also request a refund
for the current quarter billing. Appreciation is calculated and settled as part of the process. Refunds are
deposited into the client account(s) from which they were deducted. The client will, however, be
responsible for any fees or charges incurred from third parties as a result of any securities transaction
executed. Neither EAK, Inc. nor it’s representatives receive compensation for the sale of any specific
securities or other financial products. We recommend financial products not affiliated with EAK, Inc.,
and a client always has the option to purchase these investments.

All fees paid to EAK for advisory services are separate and distinct from the fees charged by mutual
funds, trading commissions and transaction fees which may be charged by SEI, and other custodians.
EAK, Inc. does not receive any portion of these fees or commissions. Mutual funds recommended
under advisory services will be “no-load” or “load-waived.” Whenever possible we do not recommend
funds with “12(b) (1) fees, or deferred sales charges. Clients are not obligated to purchase investment
products recommended, or to purchase them through our firm or custodians we recommend.

All securities fees are described in each fund’s prospectus and will usually include a management fee
and other expenses. We will always do our best to stay informed of any potential fees or commissions
associated with recommendations, and will advise the client of this knowledge, whenever possible.

Fees for business operations consultation, and tax planning or preparation are computed at an hourly
rate. Various rates apply as determined by the person performing the service as follows:

      Staff CFP, CPA Work        $200 per hour
      Paraplanner work           $100 per hour
      Office Administrative      $35 per hour

These fees are invoiced to the client separately from any management fees. Fees are not collected for
services to be performed more than three months in advance.

EAK’s Asset Management Agreement is intended to be renewed annually, upon the anniversary of the
initial agreement. In the absence of a renewal, services will continue until either party terminates the
agreement with verbal or written notice. A copy of the written document will be kept in the client’s
file for easy reference.

Item 7-Types of Clients
EAK provides financial advisory services to individuals, trusts, estates, and business entities.

The minimum account size is generally $400,000, subject to a minimum annual fee of $5,000. This
minimum fee would increase the maximum percentage rate paid on smaller accounts to more than 2%,
as displayed on our standard fee schedule. However, in no case would the fee exceed 3% per year.
The minimum account size requirement may be waived at our discretion.

EAK requires no minimum time period for clients who retain financial planning services.