Independence Financial Advisors LLC

Item 5 – Fees and Compensation

Unless otherwise agreed with a client as described below, Independence is compensated for its
advisory services on a monthly basis pursuant to a percentage of the market value of the assets
under management, in accordance with the fee schedule set forth below. Because the fee calculation
may be on the basis of the total market value of the portfolio in arrears, the total market value may
include a component of any appreciation or gains as well as any depreciation or losses in the account
during the period. Fees are calculated as of the last business day of each calendar month, prior to
any reduction for withdrawals or other deductions from the account as of that date.

Market Value                            Annual Fee

$100,000 to $750,000                    1.0%
$750,001 to $1,500,000                  0.90%
$1,500,001 to $3,000,000                0.85%
$3,000,001 or greater                   Negotiable (Fixed-Income Accounts only, 0.50%)
Charitable/Non-Profit                   Negotiable

Independence’s President and Chief Executive Officer also retains discretion to set the fee for all
new accounts at the same level as reflected on the client’s last account statement from his, her or
its previous investment advisor. Clients that came to Independence as a result of the GML
acquisition will be charged and billed according to their existing contractual agreements with
GML. In addition, in certain situations where it would be appropriate to do so, Independence may
enter into an agreement with a client under which Independence will be compensated on an hourly
basis for providing services or under which Independence will charge a one-time flat fee for
providing services.

In accordance with its standard Investment Management Agreement, Independence deducts fees
for its investment advisory services directly from clients’ brokerage accounts, during the first week
of the following month based on the fair market value of the assets in the client’s account as of the
last business day of the prior month. In the event of the termination of the Investment Management
Agreement, the management fee will be pro-rated to the effective date of the termination.

In addition to the fees disclosed in this Item 5, clients of Independence also will be solely
responsible for bank fees, custodial fees, brokerage commissions, mutual fund expenses, and other

transactional costs related to the management of their portfolio. Please refer to “Item 12 –
Brokerage Practices” for further information. Neither Independence nor any investment advisor
representative of Independence accepts compensation for the sale of securities or other investment
products from clients of the Advisor.

Item 7 – Types of Clients

The majority of the clients advised by Independence are individuals. Independence also provides
investment advisory services to a small number of pension and profit-sharing plans and charitable
organizations. Independence generally requires that its clients open a brokerage account with
Fidelity Brokerage Services, LLC (or an appropriate affiliate) (see “Item 12 – Brokerage
Practices”), but otherwise does not maintain account opening requirements or restrictions. In
addition, certain clients of Independence have also established brokerage accounts with Charles
Schwab & Co., Inc.