ETF Portfolio Partners Inc

Item 5 – Fees and Compensation

Advisory Fees: ETF Portfolio Partners charges an annual investment management fee,
based upon a percentage of the market value (securities and cash) of the assets being
managed by ETF Portfolio Partners. Clients may elect, by designating on the Investment
Advisory Agreement, to be billed directly for fees or to authorize ETF Portfolio Partners
to directly debit fees from their accounts.

Our compensation is fee-based, meaning as a client’s account goes up in value, the fee
that we receive will go up as well. We will never discourage clients from removing funds
from their accounts for purchases such as travel, houses, cars, or personal expenses, since
this would be in conflict of our fiduciary responsibility. Our duty to our clients as
fiduciaries is that our advice is always based on our client’s best interests.

The advisory fee shall be prorated and paid quarterly, in advance, based upon the market
value of the assets on the last day of the previous quarter.

Fees will be billed or deducted, as per the client’s instructions, the first week of the
quarter or after assets are deposited or transferred into the accounts.

Fees are negotiable for special circumstances and are calculated based upon the following
schedule:

                Total Household Portfolio Market Value            Annual Fee
                First $1,000,000                                    1.00%
                Next $4,000,000                                     0.75%
                Thereafter                                          0.50%

The Investment Advisory Agreement may be canceled at anytime, by either party, with
30 days’ written notice. Upon termination, the client will receive a prorated refund of that
portion of any prepaid advisory fees that have yet to be earned by ETF Portfolio Partners.
The refund will be calculated from 30 days after the date of receipt of the written
termination notice or other agreed upon date.

ETF Portfolio Partners’ fees are exclusive of brokerage commissions, transaction fees,
and other related costs and expenses which shall be incurred by the client. Clients may
incur certain charges imposed by custodians, brokers, third party investment advisers, and
other third parties such as fees charged by managers, custodial fees, deferred sales
charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and/or
other fees and taxes on brokerage accounts and securities transactions. Mutual funds and
exchange-traded funds also charge internal management fees, which are disclosed in each
fund’s prospectus. Such charges, fees, and commissions are exclusive of and in addition
to ETF Portfolio Partners’ fee. ETF Portfolio Partners does not receive any portion of
these commissions, fees, and costs.

Refer to Item 12 which describes the factors that ETF Portfolio Partners considers in
selecting or recommending broker-dealers for client transactions and determining the
reasonableness of their compensation (e.g., commissions). Clients have the option to
purchase investment products through broker-dealers of their choice.

Item 7 – Types of Clients

ETF Portfolio Partners provides portfolio management services to individuals including
trusts, IRAs, estates, 401(k) plan participants, and high net-worth individuals. We also
provide portfolio management services to charitable organizations.

As a condition for starting and maintaining a relationship, ETF Portfolio Partners shall
generally impose a minimum portfolio size of $250,000. ETF Portfolio Partners, at its
sole discretion, may accept clients with smaller portfolios based upon certain criteria
including anticipated future earning capacity, anticipated future additional assets, account
composition, related “household” accounts, and pre-existing clients. ETF Portfolio
Partners shall accept clients with less than the minimum portfolio size, if in the sole
opinion of ETF Portfolio Partners, the smaller portfolio size will not cause a substantial
increase of investment risk beyond the client’s identified risk tolerance.