Financial Advisors Network Inc

Item 5: Fees & Compensation

We are required to describe our brokerage, custody, fees, and fund expenses so you will know how
much you are charged and by whom our advisory services are provided to you. Our fees are generally
negotiable. Lower fees for comparable services may be available from other sources.

Compensation for Our Advisory Services

Financial Planning & Consulting:

We charge on an hourly or flat fee basis for financial planning and consulting services. The total
estimated fee, as well as the ultimate fee that we charge you, is based on the scope and complexity of
our engagement with you. Our hourly fees are $350 for financial advisors and $125 for paraplanners.
Flat fees generally range from $1,250 to $3,500.

We require a retainer of fifty-percent (50%) of the ultimate financial planning or consulting fee with
the remainder of the fee directly billed to you and due to us within thirty (30) days of your financial
plan being delivered or consultation rendered to you. In all cases, we will not require a retainer
exceeding $1,200 when services cannot be rendered within 6 (six) months.

Corporate Trust Services:

We charge a flat fee, and in certain cases, a fee based on a percentage of trust assets under
management in accordance with a blended tiered fee schedule for our firm’s Corporate Trust
Services. Each tier of trust assets under management is subject to a flat fee or fee based on a
percentage of trust assets under management, which is aggregated to determine the culminative fee.
Our firm’s blended tiered fee schedule for Corporate Trust Services is as follows:

                   Trust Assets Under                        Trust Services Fee
                      Management
                     $0 - $1,000,000                              $5,000
                 $1,000,001 - $2,000,000                           0.50%
                 $2,000,001 - $4,000,000                           0.40%
                 $4,000,001 - $8,000,000                           0.35%
                $8,000,001 - $12,500,000                           0.20%
               $12,500,001 - $15,000,000                           0.15%
               $15,000,001 - $20,000,000                           0.10%
                      $20,000,001 +                              Negotiable

Fees to be assessed will be outlined in the agreement to be signed by the client. Our firm’s fees, which
are generally negotiable, are billed on a pro-rata annualized basis quarterly in advance based on the
value of your account on the last day of the previous quarter. If a valuation for an asset (including
real estate property in the trusts) is not available for the last day of the previous quarter, we will rely

on the most recent valuation available for the asset. Our firm bills on cash unless indicated otherwise
in writing.

The fee will be deducted directly from another account managed by our firm. If there are insufficient
funds available in another client account or our firm believes that deducting the fee from another
client account would be prohibited by applicable law, we will invoice the client directly. For fees
deducted from your account, you understand and acknowledge the following:

       a) Your independent custodian sends statements at least quarterly to you showing the
          market values for each security included in the assets and all disbursements in your
          account including the amount of the advisory fees paid to us.
       b) You provide authorization permitting us to be directly paid by these terms. We send our
          invoice directly to the custodian.
       c) If we send a copy of our invoice to you, our invoice will include a disclosure urging you to
          compare information provided in our statement with those from the qualified custodian.

Seminars:

Mr. Kamps does not earn any fees or revenue from these seminars. Instead, each attendee pays a $59
fee (plus $5 fee for a guest) to the particular college at which Mr. Kamps presents. A portion of the
fee is used for class materials.

SEI Programs:

Our firm charges an annual advisory fee of up to a maximum of 1.30% based on the value of assets in
an SEI program account. The advisory fee is negotiable between our firm and the client. The exact fee
and/or fee schedule for each client will be disclosed in SEI’s Client Agreement. The advisory fee is
payable quarterly in arrears. SEI calculates and deducts the advisory fee according to the SEI Client
Agreement.

Retirement Plan Management/Consulting

Our Retirement Plan Management/Consulting services are billed based on a percentage of Plan assets
in accordance with a tiered fee schedule. The total estimated fee, as well as the ultimate fee charged,
is based on the scope and complexity of our engagement with the client. Fees based on a percentage
of managed Plan assets will not exceed 1.00%. The fee-paying arrangements for Retirement Plan
Management/Consulting services will be determined on a case-by-case basis and will be detailed in
the signed ERISA consulting agreement. Clients will be invoiced directly for the fees or have fees
directly debited from plan participant accounts, as determined by the plan sponsor.

Other Types of Fees & Expenses

Charges imposed by the custodian include, but are not limited to, IRA and qualified retirement plan
fees, alternative investment processing and custody fees, administrative servicing fees for trust
accounts, fees based on cash or money market deposits, and other charges required by law and
imposed by the executing broker/dealer or custodian. Also, clients will pay the following separately
incurred expenses, which we do not receive any part of: charges imposed directly by a mutual fund,
index fund, or exchange traded fund, which shall be disclosed in the fund’s prospectus (i.e., fund
management fees and other fund expenses).

For clients that use Charles Schwab & Co. (“Schwab”) as a custodian, to the extent a fixed income
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Item 7: Types of Clients & Account Requirements

We have, or will likely have, the following types of clients:
   • Individuals and High Net Worth Individuals
   • Trusts, Estates or Charitable Organizations
   • Pension and Profit Sharing Plans

Our firm does not impose requirements for opening and maintaining accounts or otherwise engaging
us.