Hutto Retirement Advisors LLC

Item 5 – Fees and Compensation

In addition to the information provided in Item 4 – Advisory Business, this section provides
additional details regarding our firm’s services along with descriptions of each service’s fees and
compensation arrangements. It should be noted that lower fees for comparable service may be
available from other sources. The exact fees and other terms will be outlined in the agreement
between you and HRA.

Wealth Diversification Program Services

Fees charged for our asset management services are charged based on a percentage of assets
under management, billed either monthly or quarterly (as specified in your asset management
agreement) in arrears and calculated based on the fair market value of your account as of the last
business day of the previous billing period. Fees are prorated (based on the number of days
service is provided during the initial billing period) for your account if opened at any time other than
the beginning of the billing period.

The Wealth Diversification Program services continue in effect until terminated by either party (i.e.,
HRA or you) by providing written notice of termination to the other party.

Fees charged for our asset management services are negotiable based on the type of client, the
complexity of the client's situation, the composition of the client's account (i.e., equities versus
mutual funds), the potential for additional account deposits, the relationship of the client with the
investment adviser representative, and the total amount of assets under management for the client.

For our asset management services, clients will be charged the following annual fee based upon
the amount of assets under management:

        Assets Under Management                                              Annual Fees

        $0 – $250,000                                                        1.920%
        $250,001 – $500,000                                                  1.500%
        $500,001 – $1,000,000                                                1.250%
        $1,000,001 – $1,500,000                                              1.000%
        $1,500,001 – $2,000,000                                              0.800%
        $2,000,001 – $4,000,000                                              0.650%
        $4,000,001 and up                                                    0.600%

HRA believes that its annual fee is reasonable in relation to: (1) services provided and (2) the fees
charged by other investment advisers offering similar services/programs. However, our annual
investment advisory fee may be higher than that charged by other investment advisers offering
similar services/programs. In addition to our compensation, you may also incur charges imposed
at the mutual fund level (e.g., advisory fees and other fund expenses).

As an alternative, HRA may offer one ‘blended’ rate for clients having total assets under
management that are above $250,000, so that clients can better understand their advisory fee rate.
As an example, for a client with total assets in the $500,000 range, HRA may offer a blended
advisory fee of 1.75% or less. This 1.75% figure is derived from an approximate 50/50 split of the
first $250,000 (that would normally be charged an advisory fee of 2%) and the second $250,000
that would normally be charged an advisory fee of 1.50%)

The investment advisory fees will be deducted from your account and paid directly to our firm by
the qualified custodian(s) of your account. You will authorize the qualified custodian(s) of your

account to deduct fees from your account and pay such fees directly to our firm. Our firm will send
you a billing statement prior to the time that fee deduction instruction is sent to the qualified
custodian(s) of your account. The billing statement will detail the formula used to calculate the fee,
the assets under management and the time period covered. See Item 15 – Custody for more
details.

You should review your account statements received from the qualified custodian(s) and verify that
appropriate investment advisory fees are being deducted. The qualified custodian(s) will not verify
the accuracy of the investment advisory fees deducted.

Brokerage commissions and/or transaction ticket fees charged by the qualified custodian are billed
directly to you by the qualified custodian. HRA does not receive any portion of such commissions
or fees from you or the qualified custodian. In addition, you may incur certain charges imposed by
third parties other than HRA in connection with investments made through your account including,
but not limited to, mutual fund sales loads, 12(b)-1 fees and surrender charges, variable annuity
fees and surrender charges, IRA and qualified retirement plan fees, and charges imposed by the
qualified custodian(s) of your account. Management fees charged by HRA are separate and
distinct from the fees and expenses charged by investment company securities that may be
recommended to you. A description of these fees and expenses are available in each investment
company security’s prospectus.

Item 7 – Types of Clients

HRA generally provides investment advice to the following types of clients:

    •   Individuals
    •   High net worth individuals
    •   Banks or thrift institutions
    •   Pension and profit-sharing plans
    •   Trusts, estates, or charitable organizations
    •   Corporations or business entities other than those listed above

You are required to execute a written agreement with HRA specifying the particular advisory
services in order to establish a client arrangement with HRA.

Minimum Investment Amounts Required

There are no minimum investment amounts or conditions required for establishing an account
managed by HRA. However, all clients are required to execute an agreement for services in order
to establish a client arrangement with HRA and/or the third-party money manager or the sponsor of
third-party money manager platforms.

The minimum fee generally charged for financial planning services provided on an hourly basis is
$350.

The minimum hourly fee generally charged for consulting services is $350.

For sub-account management services, HRA does not require a minimum account value for
variable annuity and/or variable life contracts.