Houlihan Financial Resource Group Ltd

Item 5:        Fees and Compensation

     A.      Fees Charged

     All investment management clients will be required to execute an Investment Management Agreement
     that will describe the type of management services to be provided and the fees, among other items.

     As discussed above in Item 4, most financial planning is performed in conjunction with asset management
     services. However, for clients receiving stand-alone financial planning services, financial planning fees
     are on an hourly basis. Fees range from $125 per hour to $400 per hour, depending upon the staff member
     performing the work. Lower cost staff members will be utilized when appropriate. While multi-year
     projections and summaries may be appropriate in some cases, services, unless agreed to otherwise, are
     project-oriented, generated upon client request and, therefore, are not continuous. Agreements for
     financial planning services terminate on presentation of the financial plan, and therefore any updates can
     be provided for a fee upon request. Clients should be aware that any changes to their circumstances can
     change the appropriateness of their financial plan, and so HFRG should be made aware of these changes
     as soon as practicable so the plan may be properly updated.

     B.      Fee Payment

     Fees for financial planning will be billed to each client unless the client engages HFRG for asset
     management services. When a client engages HFRG for asset management services the financial planning
     fee is waived. Fees for asset management will be deducted directly from each client’s account. The
     management fee generally ranges from 0.50% to 1.00% per annum. Fees are paid quarterly, in advance.
     This means that if the annual fee is 1.00%, then each quarter the firm will multiply the value of the account
     by 1.00% then divide by 4 to calculate the fee. Once the calculation is made, the firm will instruct the
     account custodian to deduct the fee from the account and remit it to Houlihan. When cash is deemed an
     asset allocation for investment purposes, it will be included in the asset values used to determined fees
     for the given billing period.

     C.      Other Fees

     There are a number of other fees that can be associated with holding and investing in securities. Clients
     will be responsible for fees including transaction fees for the purchase or sale of a mutual fund or

     Exchange Traded Fund, or commissions for the purchase or sale of a stock. Expenses of a fund will not
     be included in management fees, as they are deducted from the value of the shares by the mutual fund
     manager. For complete discussion of expenses related to each mutual fund or ETF clients should read a
     copy of the prospectus issued by that fund. Houlihan can provide or direct clients to a copy of the
     prospectus for any fund that we recommend. When recommending mutual funds that have multiple share
     classes, Houlihan will take into account the internal fees and expenses associated with each share class
     and select the most cost effective share class that still meets the client’s needs and objectives and is
     available to the client.

     Client do not pay fees to SPT or brokerage commissions or other fees to CS&Co as part of the Program.
     Schwab does receive other revenues in connection with the Program. Brokerage arrangements are further
     described in Item 12 below.

     Please make sure to read Item 10 of this informational brochure, where we discuss broker-dealer and
     custodial issues.

     D.      Pro-rata Fees

     If a client becomes a client during a quarter, that client will pay a management fee for the number of days
     left in that quarter. If the client terminates the relationship during a quarter, the client will be charged a
     management fee for only that portion of the quarter in which the client remained a client, and the
     remainder will be refunded to the account. Once the notice of termination is received, the firm will charge
     the fee through the date of transfer of the assets).

     E.      Compensation for the Sale of Securities.

     Neither Houlihan nor any of its professionals receive any additional compensation related to the sale of
     securities on behalf of the firm’s clients.

Item 7:        Types of Clients

     Clients advised may include individuals, high net worth individuals, trusts, foundations, pensions, and
     corporations. Houlihan requires each client seeking investment management services to place at least
     $1,000,000 with the firm, subject to the ability of the firm to waive this requirement.