First Kentucky Securities Corporation

Item 5         Fees and Compensation

PORTFOLIO MANAGEMENT SERVICES

CONSULTING SOLUTIONS PROGRAM and RBC UNIFIED PORTFOLIO PROGRAM
(WRAP)

RBC Capital Markets, LLC, as the sponsor of the Consulting Solutions and RBC Unified
Portfolio wrap fee programs, charges the client a wrap fee (the "Program Fee") based on a
percentage of assets under management. For more information regarding the RBC wrap fee
programs, including the fee schedule and other important considerations, clients should refer to
RBC’s disclosure brochure for additional information.

RBC CREDIT ACCESS LINE

RBC Correspondent Services (RBC CS) offers a lending solution through its affiliated
partner, Royal Bank of Canada, called the Credit Access Line (CAL). The CAL is a set of
credit products that are secured by the value of the eligible securities in a client’s
investment account(s). RBC CS may receive a rebate of up to 25 basis points plus any
RBC CS mark-ups on non-negotiated lines of credit.

UNBUNDLED MANAGED ACCOUNT SOLUTIONS PROGRAM (UMAS) – FKSC
WRAP FEE PROGRAM

Our annual fee for portfolio management services through the FKSC Wrap Fee Program is based
upon a percentage of assets under management. For more information regarding the Program,
including the fee schedule and other important considerations, clients should refer to Part 2A
Appendix 1: Wrap Fee Program Brochure.

FKSC ADVISORY FEE PROGRAM (NON-WRAP)
Fees assessed for the FKSC Advisory Fee Program will be outlined in the advisory
agreement and agreed upon prior to entering into contract. Clients will pay an annual fee of
up to 1.00% of the assets we manage. For households with more than $1 million in assets,
the total fee is capped at a maximum amount and does not increase further. Fees are billed
on a pro-rata annualized basis, charged quarterly in advance based on the value of the
client’s account on the last day of the previous quarter. A determination of aggregate
household valuations willbe done quarterly to determine the applicable schedule and
preferred account for payment.

Depending on the particular arrangement with each client, we will generally debit their custodial
accounts for portfolio management fees. In addition, RBC pays the Firm a monthly interest
rebate based on monthly average margin balances, money market sweep accounts, as well as a
monthly rebate on personal lines of credit accounts opened with RBC.

There are no minimum account requirements. Participation in the wrap program is limited to clients of one
Investment Adviser Representative (“IAR”). All other client accounts are serviced under a non-wrap
advisory arrangement.

In certain circumstances, FKSC may enter into advisory arrangements with qualified clients that include a
performance-based fee component. These arrangements typically combine a base asset-based advisory fee
with a performance-based incentive fee that is calculated as a percentage of the account’s net investment
gains above a defined hurdle rate. The performance fee is determined on an annual measurement period and
is subject to a high-water-mark provision so that FKSC does not receive a performance fee on gains that
merely recover prior losses.

All specific terms of a performance-based arrangement, including the applicable hurdle rate, calculation
methodology, and timing of payments, are fully disclosed in each client’s advisory agreement. FKSC will
only enter into performance-based fee arrangements with clients who meet the definition of “qualified
client” under Rule 205-3 of the Investment Advisers Act of 1940, and will comply with all regulatory
requirements governing such compensation structures. For all other clients, FKSC charges traditional asset-

based fees as described elsewhere in this Brochure.

Fees and Compensation in General

Mutual fund managers charge certain fees for their services and products. Those fees are in
addition to the investment management fees paid to the Firm, and are separate and distinct from
the investment management fees charged by the Firm. These fees and expenses are described in
the prospectuses for each mutual fund. Some mutual funds charge front-end or back-end loads
(also known as initial or deferred sales charges), investment management fees, and other fund
expenses and distribution fees (“12b-1 fees”).

Mutual funds will provide for the payment of certain Rule 12b-1 and other similar asset-based
charges (“12b-1” fee). Typically, all or a portion of the 12b-1 fee is paid by a mutual fund
company to the Firm, as outlined in the applicable prospectus, potentially creating an incentive,
and thus a conflict of interest, for the Firm or your Financial Advisor to recommend a mutual
fund that will pay a 12b-1 fee as opposed to one that does not. We address this conflict of interest
by (1) offering Advisor share class Mutual Fund positions for new purchases in Client accounts
(when available), and (2) crediting any 12b-1 fees that we receive related to a mutual fund held in
an advisory account back to the Client Account.

Many mutual fund companies offer advisory, institutional or other share classes that do not have
asales load or assess 12b-1 fees. Many mutual funds offer multiple classes of shares which are
available based on various eligibility requirements as dictated by the fund company. RBC CS or
the Firm will decide which share classes to offer in the Firm’s Clients based on such eligibility
requirements, the availability of share classes under the distribution agreements available to the
Firm through RBC CS, and other considerations. In most cases, we recommend the lowest
expense ratio share class offered by the fund company and available through RBC CS, but in
some cases, may choose to recommend a higher-cost share class. It should be noted that, in
certain instances, certain share classes may not be available to us through RBC CS and there may
be a cheaper alternative available to you should you qualify for it and purchase it elsewhere.
...

Item 7 Types of Clients
FKSC provides advisory services to the following types of clients:

•   Individuals (other than high net worth individuals)
•   High net worth individuals
•   Pension and profit-sharing plans (other than plan participants)
•   Charitable organizations
•   Corporations or other businesses not listed above
•   State or municipal government entities
•   Insurance companies

As previously disclosed in Item 5, our Firm has established certain initial minimum account
requirements, based on the nature of the service(s) being provided. For a more detailed
understanding of those requirements, please review the disclosures provided in each applicable
service.