FPL Capital Management LLC

Item 5 - Fees and Compensation

The specific manner in which fees are charged by FPL Capital Management is established in a
client’s written agreement with FPL Capital Management. FPL Capital Management will generally
bill its fees on a quarterly basis. Clients are billed in arrears at the end of the calendar quarter.
Unless otherwise noted in writing, our firm bills on cash. The management fee is deducted from
the client specified brokerage account. Management fees shall be prorated. Accounts initiated or
terminated during a calendar year will be charged a prorated fee. Upon termination of any client
relationship, all earned and unpaid fees will be due and payable. Some fees are negotiable. Lower
fees for comparable services may be available from other sources.

FPL Capital Management Fees are as follows:

    1. For Wealth & Asset Management services, we charge an annual fee that ranges between
       $5,000 and $15,000. In certain situations, if applicable, we will charge 0.70% of assets
       under management until annual fee reaches max annual fee set for the level of service
       selected but not to exceed $15,000.

    2. Additionally, our financial planning and consulting service rate is $250 per hour. This fee
       applies to all non-discretionary Asset Management clients, who are not included in our
       portfolio management programs. Our financial planning and consulting service is included
       for no additional fee for all discretionary Wealth & Asset Management clients.

    3. We provide our clients with portfolio reporting on accounts we manage. For accounts that
       we do not manage, we are willing to provide portfolio reporting for an additional fee. This
       fee is a flat annual fee. The fee will depend on the number of accounts, transactions, and
       the types of securities.

    4. For retirement and pension plans that strictly use self-directed brokerage accounts, an
       annual fee of $1,000 per Plan Participant. Our minimum annual fee for this type of
       retirement and pension plan is $3,000. Additionally, we are available for consulting
       services at an hourly rate of $150.

    5. For the services we provide for retirement and pension plans that have participant-
       directed accounts, we now offer a discounted rate of 0.70% of assets under management
       for Plans below $357,000 in assets. Once the Plan assets reach $357,000, we charge based
       on the fee schedule outlined below. We are also available to engage in consulting services
       at an hourly rate of $150.

ADV Part 2A – Firm Brochure                   Page 7                           FPL Capital Management, LLC

         We also charge a One-Time Setup fee service based on the initial base fee (see table below)
         plus $100 per Plan Participant. For one-time set-up flat fee option, the discounted rate of
         0.70% for assets under management for Plans below $357,000 in assets does not apply.

               # Of Participants            Annual/Initial Base Fee           Fee per Participant

                   100 – 199                         $7,500                        $200 (*$100)

                   200 - 299                         $12,500                       $200 (*$100)

                   300 – 500                         $17,500                       $200 (*$100)

                      500+                        Please Contact                  Please Contact

         *One-time setup fee per participant

    6. For the services we provide for Defined Benefit Pension Plans and Cash Balance Pension
       Plans, we charge 70 bps (0.70%) of plan assets with a minimum annual fee of $2,500 and:

                              Plan Assets Value                       Max Annual Fee

                          Less than $5,000,000                           $5,000

                       Greater than $5,000,000                           $10,000
                       but less than $10,000,000

                       Greater than $10,000,000                          $15,000
                       but less than $15,000,000

                       Greater than $15,000,000                          $20,000

FPL Capital Management’s fees are exclusive of brokerage commissions, transaction fees, and
other related costs and expenses which may be incurred by the client. Depending on the security,
client can incur transaction fees for trades executed by their chosen custodian via individual
transaction charges. These transaction fees are separate from FPL Capital Management’s advisory
fees and will be disclosed by the chosen custodian. Schwab does not charge transaction fees for
U.S. listed equities and exchange traded funds. Fidelity eliminated transaction fees for U.S. listed
equities and exchange traded funds for clients who opt into electronic delivery of statements or
maintain at least $1 million in assets at Fidelity. Clients who do not meet either criteria will be
subject to transaction fees charged by Fidelity for U.S. listed equities and exchange traded funds.

ADV Part 2A – Firm Brochure                          Page 8                         FPL Capital Management, LLC

Clients may also incur certain charges imposed by custodians, brokers, third-party investment and
other third parties such as fees charged by managers, custodial fees, deferred sales charges, odd-
lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on
brokerage accounts and securities transactions. Mutual funds and exchange traded funds also
charge internal management fees, which are disclosed in a fund’s prospectus. Such charges, fees
and commissions are exclusive of and in addition to FPL Capital Management’s fee, and FPL Capital
Management shall not receive any portion of these commissions, fees, and costs.

Item 12 further describes the factors that FPL Capital Management considers in selecting or
...

Item 7 – Types of Clients

FPL Capital Management provides portfolio management services to individuals, high-net-worth
individuals, corporate pension and profit-sharing plans, trusts, and business entities. Our
minimum account size is $500,000. The client may aggregate household accounts to satisfy the
required minimum. In some instances, we may reduce or waive the minimum for certain clients.