Financial Advisory Services LLC

5.     Fees and Compensation
Compensation derives from fees calculated from the amount of client assets under management.
Investment management fees range from 0.2% to 1.00% annually, and are assessed quarterly, in
arrears, based on the value of funds invested, adjusted for deposits and withdrawals. Fees are
generally not negotiable, and are deducted from client accounts quarterly. The Firm’s fee schedule
is 1.0% for the first $1M under management, and 0.85% for the second $1M under management
or more. Variations from this schedule may arise under justifiable circumstances. A minimum
quarterly fee can be applied to any account. There are no prepaid fees for investment management
services. Fees are deducted from client accounts held by a qualified custodian quarterly after the
custodian receives written notice of the amount to be deducted. The client receives a written
invoice itemizing the fee, including any formulae used to calculate the fee, the time period covered
by the fee and the amount of assets under management on which the fee was based. Contracts may
be terminated at any time by written notice of either party subject to fees earned to date. Mutual
funds that may be included in client accounts do charge various individual expense ratios;
however, no income to the Firm is derived through 12b1 fees or commissions on the purchase or
sale of any investment product.

7.     Types of Clients
Clients to whom the Firm generally provides investment advice are families, individuals, high net-
worth individuals, trusts, businesses, and charitable foundations. The Firm generally requires a
minimum initial account size for new clients of $100,000, but may waive this requirement in
appropriate circumstances.