Evensky & Katz LLC

Item 5 - Fees and Compensation
Description
    EKF bases its fees on a percentage of assets under management or under
    advisement, hourly charges or fixed retainer fees.
     Some Retainer Agreements may be priced based on the complexity of work,
     especially when asset management is not the most significant part of the
     relationship.
     Financial plans are priced according to the degree of complexity associated
     with the client’s situation.
     Fees are negotiable under special circumstances.

Fee Billing
    Management fees are billed quarterly, in advance, meaning that we invoice you
    at the beginning of the three-month billing. Payment in full is expected upon
    invoice presentation. With the client’s prior approval fees are deducted from a

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    designated client account to allow EKF to provide performance reporting net of
    all fees.
    Billing on Cash Positions:
    EKF treats cash as an asset class. As such, all cash positions (money markets,
    etc.) shall be included as part of assets under management for purposes of
    calculating EKF’s advisory fee. At any specific point in time, depending upon
    perceived or anticipated market conditions/events (there being no guarantee
    that such anticipated market conditions/events will occur), EKF may maintain
    cash positions for defensive purposes. In addition, while assets are maintained
    in cash, such amounts could miss market advances. Depending upon current
    yields, at any point in time, EKF’s advisory fee could exceed the interest paid
    by the client’s money market fund.

Fee Dispersion
    EKF generally requires assets under management of $1 million for Wealth
    Management services. EKF, in its discretion, may waive its Wealth
    Management minimum, charge a lesser investment advisory fee, charge a flat
    fee, waive its fee entirely, or charge the fee in arrears instead of in advance,
    based upon certain criteria (i.e., anticipated future earning capacity, anticipated
    future additional assets, dollar amount of assets to be managed, related
    accounts, account composition, complexity of the engagement, anticipated
    services to be rendered, grandfathered fee schedules, employees and family
    members, courtesy accounts, competition, negotiations with client, etc.).
    Please Note: As result of the above, similarly situated clients could pay
    different fees. In addition, similar advisory services may be available from other
    investment advisors for similar or lower fees.
    EKF does not charge or reimburse for intra-quarter asset additions or
    withdrawals by existing clients.

Other Fees
    Custodians may charge transaction fees on purchases, sales or swaps of
    certain mutual funds and exchange-traded funds. These transaction charges
    are usually small and incidental to the purchase or sale of a security. EKF
    believes that the selection of the security is more important than the nominal
    fee that the custodian charges to buy or sell the security.
    EKF, in its sole discretion, may waive its minimum fee and/or charge a lesser
    investment advisory fee based upon special criteria.

Expense Ratios
    Mutual funds generally charge a management and expense fee for their
    services as investment managers. These are called an expense ratio. For
    example, an expense ratio of 0.50 means that the mutual fund company

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     charges 0.5% for their services. These fees are in addition to the fees paid by
     you to EKF.
     Performance figures quoted by mutual fund companies in various publications
     are after their fees have been deducted.

Margin Accounts: Risks/Conflict of Interest/Billing on Margin Balances
    EKF does not recommend the use of margin for investment purposes. A
    margin account is a brokerage account that allows investors to borrow money
    to buy securities and/or for other non-investment borrowing purposes. The
    broker-custodian charges the investor interest for the right to borrow money
    and uses the securities as collateral. By using borrowed funds, the client is
    employing leverage that will magnify both account gains and losses. Should a
    client determine to use margin, EKF will include the entire market value of the
    margined assets when computing its advisory fee. Accordingly, EKF’s fee shall
    be based upon a higher margined account value, resulting in EKF earning
    correspondingly higher advisory fee. As a result, the potential conflict of interest
    arises since EKF may have an economic disincentive to recommend that the
    client terminate the use of margin. Please Note: The use of margin can cause
    significant adverse financial consequences in the event of a market correction.
 Billing on Margin Balances:
     Margin/Debit balances in client portfolios are subject to being added back for
     the purpose of calculating management fees.

Past due Accounts and Termination of Agreement
    EKF reserves the right to stop working on any account that is more than 30
    days overdue. In addition, EKF reserves the right to terminate any financial
    planning engagement where a client has willfully concealed or has refused to
    provide pertinent information about financial situations when necessary and
    appropriate, in EKF’s judgment, to provide proper financial advice. Any unused
    portion of fees collected in advance will be refunded within 30 days.

Item 7 - Types of Clients
Description
    EKF generally provides investment advice to individuals, including high net-
    worth individuals, 401(k), pension and profit-sharing plans, 403(b), trusts,
    estates, and charitable organizations, corporations or business entities.
    Client relationships vary in scope and length of service.

Account Minimums
    The minimum portfolio size for Wealth Management services is $1,000,000.
    Accounts of less than $1,000,000 may be set up when the client and the advisor
    anticipate the client will add additional funds to the accounts bringing the total
    to $1,000,000 within a reasonable time. Other exceptions will apply to
    employees of EKF and their relatives, or relatives of existing clients.
    EKF, may charge a lesser investment advisory fee, waive or modify its asset
    minimum, charge a flat fee, or waive its fee entirely based upon certain criteria
    (i.e. anticipated future earning capacity, anticipated future additional assets,
    dollar amount of assets to be managed, related accounts, account composition,
    complexity of the engagement, grandfathered fee schedules, EKF employees
    and family members, courtesy accounts, competition, negotiations with client,
    etc.). Please Note: As a result of the above, similarly situated clients could pay
    different fees. In addition, similar advisory services may be available from other
    investment advisers for similar or lower fees.