Financial Investment Team Inc

Item 5 – Fees and Compensation

A    In consideration for our services, Clients pay us a fee monthly in advance, with payment due
     within 10 days from the date of the invoice. The fee shall be calculated as the advisory fee rate
     as stated in “Schedule A” times the market value of the account(s) governed by this agreement
     as of the last trading day of the previous trading month divided by 12. The market value will
     be construed to equal the sum of the values of all assets in the account, not adjusted by any
     margin debit.

     Compensation to us for our services will be calculated in accordance with fees set-forth in
     “Schedule A” of the Investment Advisory Agreement, which is entered into with each Client
     when we begin our professional relationship.

     STANDARD ADVISORY FEE SCHEDULE

                                         Tiered
                  Assets Under Management       Maximum Annual Fee
                 The First $500,000                   1.60%
                 The Next $500,000 to $1              1.35%
                 million

                                               Flat
                  Assets Under Management           Maximum Annual Fee
                 All assets if balance greater            1.10%
                 than $1,000,000

      The firm may also charge some legacy clients pursuant to the following fee schedule. This
      fee schedule is not being offered to new clients.

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                         PART 2A OF FORM ADV – FIRM BROCHURE

             Assets Under Management              Maximum Annual Fee

            The first $250,000                              1.10%
            The next $250,000                               0.95%
            The next $500,000                               0.90%
            The next $1,000,000                             0.85%

The firm in its sole discretion, and on a case-by-case basis, may also provide financial planning
services to its investment advisory clients, the cost of which may be included in its advisory
fees pursuant to Schedule A above.

The minimum investment amount for establishing and maintaining a new advisory relationship
is $250,000. This minimum is based on the aggregate amount of client accounts per household.
We may accept smaller accounts on a case-by-case basis.

Existing clients may be grandfathered into a different minimum requirement or fee schedule.

FINANCIAL PLANNING

For non-advisory clients, the preparation of a financial plan is billed at $500 per hour, with
invoices issued monthly as services are provided. The minimum cost for a comprehensive
financial plan is $4,000.

Our services include the necessary time and effort to collaborate with the Client’s attorney
and/or accountant to reach consensus on solutions and to assist those third parties in
implementing the appropriate documents. However, any fees charged by the Client’s attorney
or accountant for their services are the responsibility of the Client and are not included in our
charges.

Clients are encouraged to review their plans on a regular basis, based on individual
circumstances.

For purposes of determining value, securities and other instruments traded on a market for
which actual transaction prices are publicly reported shall be valued at the last reported sale
price on the principal market in which they are traded. Other readily marketable securities shall
be priced using a pricing service or through quotations from one or more dealers. In a situation
where less actively traded securities do not have readily available market quotations, Advisor
will take steps to ensure that an appropriate valuation methodology is used to determine the
value of the security.

TAX PLANNING AND PREPARATION

Tax planning and preparation services are offered to FIT clients. The fee for these services

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                          PART 2A OF FORM ADV – FIRM BROCHURE

will be based on the time spent to do the work by staff members at their hourly rates. This
fee is waived for investment advisory Clients with household assets under management of
$1,000,000 or greater. See Item 14 for other tax preparation fees.

ROLLOVER RECOMMENDATIONS

As part of our investment advisory services to you, we may recommend that you roll assets
from your employer’s retirement plan, such as a 401(k), 457, or ERISA 403(b) account
(collectively, a “Plan Account”), to an individual retirement account, such as a SIMPLE IRA,
SEP IRA, Traditional IRA, or Roth IRA (collectively, an “IRA Account”) that we will manage
on your behalf. We may also recommend rollovers from IRA Accounts to Plan Accounts, from
Plan Accounts to Plan Accounts, and from IRA Accounts to IRA Accounts. When we provide
any of the foregoing rollover recommendations we are acting as fiduciaries within the meaning
of Title I of the Employee Retirement Income Security Act (“ERISA”) and/or the Internal
Revenue Code (“IRC”), as applicable, which are laws governing retirement accounts.

If you elect to roll the assets to an IRA that is subject to our management, we will charge you
an asset-based fee as set forth in the advisory agreement you executed with our firm. This
creates a conflict of interest because it creates a financial incentive for our firm to recommend
the rollover to you (i.e., receipt of additional fee-based compensation). You are under no
obligation, contractually or otherwise, to complete the rollover. Moreover, if you do complete
the rollover, you are under no obligation to have the assets in an IRA managed by our firm.
Due to the foregoing conflict of interest, when we make rollover recommendations, we operate
under a special rule that requires us to act in your best interests and not put our interests ahead
of yours.

Under this special rule’s provisions, we must:
...

Item 7 – Types of Clients

We provide investment advice to the following types of Clients:

       Individuals
       Institutional (such as Pension and Profit-Sharing Plans)
       Trusts, Estates or Charitable Organizations
       Corporations and Business Owners

Because each Client is unique, we encourage involvement in the planning and processes involved in
the management of their accounts. We want our Clients to remain informed and have a sense of
security about their financial plan and such involvement does not have to be time consuming.

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The minimum investment amount for establishing and maintaining a new advisory relationship is
$250,000. This minimum is based on the aggregate amount of client accounts per household. We may
accept smaller accounts on a case-by-case basis.