Flying Point Financial Inc

Item 5: Fees and Compensation

We base our fees on hourly charges, fixed fees and/or a percentage of assets under
management, described below.

Compensation – Financial Planning
Financial Planning fees are charged on an hourly basis of $250 per hour. Half of the agreed
upon fee will be due upon entering a planning agreement and the balance is due upon
presentation of the financial plan.

Compensation – Wealth Management Services
Wealth Management fees are charged an annual fee ranging from 0.50% to 1.50% depending
on the total assets under management, portfolio composition, and complexity of the case. The
asset-based fee is billed on a quarterly basis, in arrears, based upon the market value of the
assets under management, including cash, on the last day of the previous quarter as valued by
the custodian.

Compensation – Raymond James Programs
Clients participating in Raymond James sponsored managed account programs pay program or
wrap fees, generally deducted quarterly in advance. These fees typically include advisory
services provided by us, platform administration, and portfolio management services provided
by Raymond James or third-party managers. Clients may also incur additional expenses not
included in the program fee, such as custodial charges, mutual fund expenses, or transaction
costs associated with step-out trading. Program fees may be higher than fees charged under
other advisory arrangements.

Calculation and Payment
The specific manner in which we charge fees is established in a client’s written agreement with
us. Clients may elect to be invoiced directly for fees or to authorize us to directly debit fees
from client accounts.

Upon termination of any account, any prepaid, unearned fees will be promptly refunded, and
any earned, unpaid fees will be due and payable.

Other Fees
There are no additional types of fees or expenses that our clients pay in connection with the
delivery of advisory services.

Agreement Terms
Either party may terminate an agreement at any time by notifying the other in writing. If the
client made an advance payment, we would refund any unearned portion of the advance
payment. If the client made a payment in arrears, we would collect any earned yet unpaid fees.

Cash Balances
Some assets may be held as cash and remain uninvested. Holding a portion of assets in cash
and cash alternatives, i.e., money market fund shares, may be based on the client’s desire to
have an allocation to cash as an asset class, to support a phased market entrance strategy, to
facilitate transaction execution, to have available funds for withdrawal needs or to pay fees or
to provide for asset protection during periods of volatile market conditions. Cash and cash
equivalents will be subject to our investment advisory fees unless otherwise agreed upon.
Clients may experience negative performance on the cash portion of their portfolio if the
investment advisory fees charged are higher than the returns received from cash.

Retirement Plan Rollover Recommendations
As part of our investment advisory services to our clients, we may recommend that clients roll
assets from their 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 advise on the
client’s 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.

If the client elects to roll the assets to an IRA that is subject to our advisement, we will charge
the client an asset-based fee as set forth in the advisory agreement the client executed with our
firm. This creates a conflict of interest because it creates a financial incentive for our firm to
recommend the rollover to the client (i.e., receipt of additional fee-based compensation).
Clients are under no obligation, contractually or otherwise, to complete the rollover. Moreover,
if clients do complete the rollover, clients are under no obligation to have the assets in an IRA
advised on 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 our clients’ best
interests and not put our interests ahead of our clients.’

Under this special rule’s provisions, we must:

   •   meet a professional standard of care when making investment recommendations (give
       prudent advice);
   •   never put our financial interests ahead of our clients’ when making recommendations
       (give loyal advice);
   •   avoid misleading statements about conflicts of interest, fees, and investments;
   •   follow policies and procedures designed to ensure that we give advice that is in our
       clients’ best interests;
   •   charge no more than a reasonable fee for our services; and
   •   give clients basic information about conflicts of interest.

Many employers permit former employees to keep their retirement assets in their company
plan. Also, current employees can sometimes move assets out of their company plan before
they retire or change jobs. In determining whether to complete the rollover to an IRA, and to

the extent the following options are available, clients should consider the costs and benefits of
a rollover. Note that an employee will typically have four options in this situation:

   1.   leaving the funds in the employer’s (former employer’s) plan;
   2.   moving the funds to a new employer’s retirement plan;
   3.   cashing out and taking a taxable distribution from the plan; or
   4.   rolling the funds into an IRA rollover account.

Each of these options has positives and negatives. Because of that, along with the importance
of understanding the differences among these options, we will provide clients with a written
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Types of Clients
We provide services to individuals, high net worth individuals, pension and profit-sharing plans,
trusts, estates, and corporations.

Account Minimums
As a condition for starting and maintaining an investment management relationship, we
generally impose a minimum portfolio size of $500,000. The Firm, in its sole discretion, may
waive this minimum based on the needs of the client and the complexity of the situation. In the
event we accept an account with assets below its stated portfolio minimum, we may impose a
minimum annual fee of $1,500 or 2% of the value of assets under management, whichever is
less.