Financial Partners LLC

Item 5: Fees & Compensation

How We Are Compensated for Our Advisory Services

Comprehensive Portfolio Management Services:

The following fee schedule will be the fee schedule in effect until any change is agreed upon, in
writing, by both Financial Partners and the advisory client.

              Market Value of Assets                      Maximum Annual Fee Percentage Charge
                  First $500,000                                        1.65%
                  Next $500,000                                         1.25%
                 Next $1,000,000                                        1.00%
                 Over $2,000,000                                        0.80%

Fees are negotiable under limited circumstances based upon portfolio size and other business
considerations.

Please note: the above fee schedule is a tiered fee schedule. For example, if a client has $2,500,000 in
assets under management with our firm, the annual fee charged to the client will be $28,500.

The calculation will be as follows: ($500,000 x 1.65%) + ($500,000 x 1.25%) x ($1,000,000 x 1.00%)
+ ($500,000 x 0.80%) = $28,500 annual fee

Our firm’s fees 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 according to the flat fee schedule disclosed
above. Adjustments will be made for deposits and withdrawals in client accounts. Our firm bills on
cash unless indicated otherwise in writing. Fees will be automatically deducted from your managed
account.* As part of this process, you understand and acknowledge the following:

   a) The client’s independent custodian sends statements at least quarterly showing the market
      values for each security included in the Assets and all account disbursements, including the
      amount of the advisory fees paid to our firm;
   b) Clients will provide authorization permitting our firm to be directly paid by these terms. Our
      firm will send an invoice directly to the custodian; and

    c) If our firm sends a copy of our invoice to the client, a legend urging the comparison of
       information provided in our statement with those from the qualified custodian will be
       included.

*Certain accounts may establish procedures to pay our fee directly rather than through a debit to the
account.

For the sub-advisory services rendered to our clients, our firm compensates third-party investment
advisory firms or individual advisors a percentage of the overall investment advisory fee charged by
our firm. The total combined advisory fee paid by the client to our firm and the Third-Party
Manager(s) shall not exceed 2.20%.

You may terminate this service upon 30 days written notice and a refund will be made on a pro-rata
(by day) basis of any unearned fees paid in advance. The client has the right to terminate this
agreement without penalty within five business days after entering into the contract.

Financial Planning Services:

Fees are negotiable and dependent upon the scope of work performed. Fees will be billed at a rate
of up to $300 per hour. Whether our firm charges a partial or full retainer upfront will be detailed
in the agreement.

Since financial planning is a discovery process, situations occur wherein you are unaware of certain
financial exposures or predicaments. In the event that your situation is substantially different than
disclosed at the initial meeting, a revised fee will be provided for mutual agreement. You must
approve the change of scope in advance of the additional work being performed when a fee increase
is necessary. Our firm will not require a retainer exceeding $1,200 when services cannot be
rendered within six (6) months.

Either party may terminate the Financial Planning Agreement at any time by providing 30 days’
written notice. For purposes of calculating refunds, all work performed by us up to the point of
termination shall be calculated at the hourly fee currently in effect. You will receive a pro-rata refund
of unearned fees based on the time and effort expended by our firm and Planner.

The client has the right to terminate this agreement without penalty within five business days after
entering into the contract.

Other Types of Fees & Expenses

Clients will incur transaction fees for trades executed by the account custodian. However, our
recommended custodian, Charles Schwab & Co., Inc. (“Schwab”), does not charge transaction fees for
online trades of U.S. exchange-listed equities, U.S. exchange-listed exchange traded funds (“ETFs"),
and no-transaction-fee (“NTF”) mutual funds. Our firm primarily recommends U.S. listed equities and
exchange traded funds that are not charged transaction fees. Any transaction fees charged by the
custodian are separate from our firm’s advisory fee and will be disclosed by the custodian. Clients
may also pay holdings charges imposed by the custodian for certain investments, charges imposed
directly by a mutual fund, index fund, or exchange traded fund, which shall be disclosed in the fund’s
prospectus (e.g., fund management fees and other fund fees), distribution fees, surrender charges,
variable annuity fees, IRA and qualified retirement plan fees, mark-ups and mark-downs, spreads

paid to the market maker, fees for trades executed away from custodian, wire transfer fees and taxes
on brokerage accounts and securities transactions.

Commissionable Securities Sales.

Our firm and representatives do not sell securities for a commission in advisory accounts.

Item 7: Types of Clients & Account Requirements

We offer financial and investment advisory services to the following types of clients:
   • Individuals
   • High Net Worth Individuals
   • Charitable Organizations

Our requirements for opening and maintaining accounts or otherwise engaging us:

   •   Our firm requires a minimum account balance of $500,000 for our Comprehensive Portfolio
       Management service. Generally, this minimum account balance requirement is able to be
       waived at our firm’s discretion but would generally be required throughout the course of the
       client’s relationship with our firm.