Financial Independence Advisors LLC

Item 5: FEES AND COMPENSATION
All fees are subject to negotiation. All fees are calculated on assets under management and are
not charged on the basis of a share of capital gains or capital appreciation of the funds or any
portion of the funds of an advisory client [SEC Rule 205 (a)(1)].

The specific manner in which fees are charged by FIA is established in a client’s written
agreement with FIA. CPS Investment Advisors, the money manager, will generally bill FIA’s
clients its fees in advance on a quarterly basis. Fees and quarter end account values are rounded
to the nearest dollar. Clients may also elect to be billed directly for fees or to authorize CPS to
directly debit fees from client accounts. Management fees shall not be prorated for each capital
contribution and withdrawal made during the applicable calendar. Accounts initiated or
terminated during a calendar quarter will be charged a prorated fee. Upon termination of any
account, any prepaid, unearned fees will be promptly refunded, and any earned, unpaid fees will
be due and payable. The client has the right to terminate an agreement within five business days
after entering into the agreement.

FIA 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 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 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 a fund’s prospectus. Such charges, fees and commissions are exclusive of
and in addition to FIA’s fee, and FIA shall not receive any portion of these commissions, fees,

and costs.

Clients will be invoiced in advance, at the beginning of each calendar quarter, based upon the
month end values (market value or fair market value in the absence of market value, plus any
margin balance) of the client’s account during the previous quarter. The value of the portfolio is
determined on the nearest valuation date preceding the end of the quarter, which valuation date is
defined as the last day of the month. Fees will be automatically deducted by our partners, CPS
Investment Advisors, and remitted to FIA.
Management of the account and the fee commences upon the signing of the agreement, unless
otherwise agreed upon. If the agreement commences other than at the beginning of a quarter, a
pro rata charge will be made for the initial period the portfolio is under the advisor’s
management prior to the beginning of a quarter on the amount agreed upon.

Management fees do not include wire fees, margin interest, overnight or registered postage
charges, mutual fund sales charges, IRA custodial fees or transaction charges. These fees are
charged to the client directly by the mutual fund or custodian when incurred.

“Brokerage Practices” on page 11 further describes the factors that FIA considers in selecting or
recommending broker-dealers for client transactions and determining the reasonableness of their
compensation (e.g., commissions).

All fees paid to FIA for investment advisory services are separate and distinct from the fees and
expense charged by mutual funds to their shareholders. These fees and expenses are described in
each fund’s prospectus. These fees will generally include a management fee, other fund expenses
and a possible distribution fee. If the fund also imposes sales charges, a client may pay an initial
or deferred sales charge. A client could invest in a mutual fund directly, without the services of
FIA. In that case, the client would not receive the services provided by FIA which are designed,
among other things, to assist the client in determining which mutual fund or funds are most
appropriate to each client’s financial condition and objectives. Accordingly, the client should
review both the fees charged by the funds and the fees charged by FIA to fully understand the
total amount of fees to be paid by the client and to thereby evaluate the advisory services being
provided.

When appropriate to the needs of the client, FIA may recommend the use of trading (securities
sold within 30 days), margin strategies, or option writing. Because these investment strategies
involve certain additional degrees of risk, they will only be recommended when consistent with
the client’s stated tolerance for risk.

Financial Planning Services: FIA provides Financial Planning Servies only in connection with
rendering of investment supervisory services at no additional charge.

Investment Supervisory Services: The annual fee for investment supervisory services will be
charged as a percentage of assets under management, according to the schedule below. The fee
assessed is divided between FIA and the money manager, CPS. As FIA’s firm AUM increases,
FIA will progressively earn more of the fee.

         ASSETS UNDER                                                      TOTAL ANNUAL
         MANAGEMENT                  FIA SHARE           CPS SHARE              FEE
 The portion of assets between
 $0.00 - $3,000,000                     1.00%               0.50%                1.500%
 The portion of assets between
 $3,000,001 - $5,000,000                0.67%               0.33%                1.000%
 The portion of assets over
 $5,000,001                             0.50%               0.25%                0.75%

401(k) Services: The annual fee for investment supervisory services will be charged as a
percentage of assets under management, according to the schedule below:

         ASSETS UNDER                                                      TOTAL ANNUAL
         MANAGEMENT                  FIA SHARE           CPS SHARE              FEE
 The portion of assets up to
...

Item 7: TYPES OF CLIENTS
FIA provides portfolio management services to individuals, high net worth individuals, corporate
pension and profit-sharing plans, charitable institutions, foundations, endowments,
municipalities, and other U.S. institutions. There is no minimum account size requirement to
work with FIA.