Financial Strategies Investment Advisor Services Inc

ITEM 5: FEES AND COMPENSATION

A. FEE SCHEDULE

                        INVESTMENT MANAGEMENT SERVICES

FSIAS will charge clients an ongoing asset-based fee for investment management services based
on the total assets, including cash, held in accounts under FSIAS’s management (“Advisory Fee”).
At our discretion, we may combine the account values of family members living in the same
household to determine the applicable advisory fee. For example, we may combine account values
for you and your minor children, joint accounts with your spouse, and other types of related
accounts. Combining account values may increase the asset total, which may result in your paying
a reduced advisory fee based on the available breakpoints in our fee schedule stated below. FSIAS,
in its sole discretion, may negotiate the client’s Advisory Fee. The Advisory Fees are calculated
as a percentage of the client’s assets under management, including all cash and other assets in the
Account(s) (the “Account Value”), as follows:

                         Total Assets Under
                                                         Annual Fee
                           Management
                           $0 - $250,000                   1.65%
                          $250,001 - $1M                   1.50%
                             $1M - $3M                     1.30%
                             $3M - $5M                     1.25%
                          Over $5,000,000                 Negotiable

Advisory Fees are charged based on assets under advisement, computed on a step-scaled model.
The balance is computed on the last day of the quarter and billed quarterly in arrears.

The Advisory Fee charged is subject to negotiation with each client based on the client’s
characteristics and may differ from client to client. An investment management agreement may be
executed when financial planning is not provided as part of the relationship. Lower fees for
investment management services may be available from other sources..

                            FINANCIAL PLANNING SERVICES

FSIAS’s financial planning services are predicated upon the facts known at the start of the
engagement. The minimum fee is $500 and is negotiable. The average fees can range from $500
to $2,500 depending on the resources needed and complexity of the case. Financial plans may
require a deposit of $500 to cover up-front software costs. Any due refunds for fees paid in advance
will be returned within fourteen (14) days to the client either by check or cash deposited back into
the client's account. The financial planning services fees may be negotiable based on the
complexity and scope of the services, as well as the client’s financial situation and objectives. If

additional services or substantially different changes to the engagement which exceed the
estimated fee are required, FSIAS will notify the client as soon as possible to discuss the necessary
additional fees. A time estimate is provided prior to initiating additional work, and client approval
is required.

   •   Tax preparation and other consulting services: FSIAS may charge a fixed fee ranging from
       $100 to $2,500 depending on the complexity of the project. Fees paid to FSIAS for advisory
       services are separate and distinct from the fees paid for the tax preparation and other
       services provided by Mr. Tomasko. FSIAS will issue separate invoices to clients for tax
       preparation and consulting services, distinct from the Firm's advisory fees. The client
       retains absolute discretion to engage Mr. Tomasko and is free to accept or reject any
       recommendation from the Firm and/or its investment advisor representatives.

   •   We may recommend a client purchase annuities or insurance from an insurance company
       or unaffiliated broker-dealer. The client will pay the insurance company directly for any
       fees associated with the annuity or insurance policy. Compensation from insurance
       companies creates a conflict of interest as the Firm may have an incentive to recommend
       products that increase the Firm’s compensation. The client retains absolute discretion to
       the financial and is free to accept or reject any recommendation from the Firm and/or its
       IARs.

                             SELECTION OF OTHER ADVISERS

Fees charged by the TPA are separate and apart from FSIAS advisory fees. Associated fees that
you pay to the TPA established and payable in accordance with the Form ADV 2A provided by
each TPA to whom you are referred. These fees may or may not be negotiable. You should review
the recommended TPA's brochure and take into consideration the TPA's fees along with our fees
to determine the total amount of fees associated with this program.

Lower fees for comparable services by other third-party portfolio managers may be available from
other sources. For full disclosure of the TPA’s fees please refer to form a ADV Part 2A Brochure
for the TPA.

                      PENSION AND RETIREMENT PLAN SERVICES

FSIAS’ annual fees are based on the market value of the managed plan assets and will not exceed
two- and one-half percent (2.5%). Details of the specific fee charged are more fully described in
the advisory agreement entered into with each client. Fees are charged quarterly in arrears based
on the managed assets as calculated by FSIAS (without adjustments for anticipated withdrawals
by Plan participants or other anticipated or scheduled transfers or distribution of assets) on the last
business day of the previous quarter. If the services to be provided start any time other than the
first day of a quarter, the fee will be prorated based on the number of days remaining in the quarter.

If this Agreement is terminated prior to the end of the fee period, FSIAS shall be entitled to a
prorated fee based on the number of days during the fee period services were provided.

B. PAYMENT OF FEES
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ITEM 7: TYPES OF CLIENTS

A. Clients

FSIAS generally provides investment management services to individuals, trusts, estates,
charitable organizations, pension and profit-sharing plans, corporations, or small business entities.
Client relationships vary in scope and length of service.

B. Engaging the Services of FSAIS

All clients wishing to engage FSAIS for advisory services must enter into the applicable advisory
agreement with FSAIS as well as any other document or questionnaire provided by FSAIS. The
advisory agreement describes the services and responsibilities FSAIS to the client. It also outlines
FSAIS’s advisory fees in detail. In addition, clients must complete certain broker-dealer/custodial
documentation. Upon completion of these documents, FSAIS will be considered engaged by the
client.

Each client engagement will entail some level of review of the client's investment goals, financial
situation, time horizon, tolerance for risk and other factors to develop an appropriate strategy for
managing a client's account. Client participation in this process, including full and accurate
disclosure of requested information, is essential for the analysis of a client's account. FSAIS shall
rely on the financial and other information provided by the client or their designees without the
duty or obligation to validate the accuracy and completeness of the provided information. It is the
responsibility of the client to inform FSAIS of any changes in financial condition, goals or other
factors that may affect this analysis.

C. Conditions for Managing Accounts

The minimum account size is $100,000.00 of assets under management to maintain a relationship
with us. Clients with assets below the minimum account size may pay a higher percentage rate on
their annual fees than the fees paid by clients with greater assets under management.

FSIAS has the sole discretion to lower or waive the account minimum. Accounts of less than
$100,000 may be set up when the client or the advisor anticipates the client will add additional
funds to the accounts, bringing the total to $100,000 within a reasonable time. Other exceptions
may apply to employees of FSIAS and their relatives, or relatives of existing clients.

There is also a minimum fee of $500 for financial planning services.