KAI Wealth LLC

Item 5. FEES AND COMPENSATION

A.      Generally: All fees are individually negotiated. Depending on the Client and terms stated
        in the Investment Management Agreements, the Firm generally charges a management fee
        based upon assets under management (the “Management Fee”). The Firm allows for some
        flexibility in the Management Fee structure depending on individual circumstances. In
        certain situations, the Firm may charge a separate fee for certain unmanaged, self-directed
        assets on which the Firm advises and/or includes in its consolidated performance reporting.

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        As a result of the variety of factors involved with establishing a fee structure and rate, certain
        Clients pay higher fees than other Clients with the same level of assets under management.
        Management Fees on a percentage basis may generally be lower for Clients with higher
        amounts of assets under management. The Firm has negotiated lower Management Fees for
        certain Clients, such as charitable organizations or employees’ family members and friends.
        Additionally, Management Fees may be waived entirely on accounts of the Firm’s
        employees and their family members (“proprietary accounts”). The Firm at times may work
        with Clients on a per-project basis, in which case fees for such projects are agreed upon and
        documented prior to the engagement. Such fees are set on an hourly or project basis and will
        vary based on the scope, duration, nature and complexity of the work.

        Fees for assets consisting of private investment vehicles and funds (e.g., hedge funds, private
        equity, or other investments that are not generally held by a Qualified Custodian (as
        hereinafter defined)) shall be determined using the capital account value set forth on the
        most recent capital account statement available to the Firm at the time of billing, or if no
        capital account statement is available, the initial investment account value. The Firm will
        use the initial investment amount for billing purposes until such capital account statement
        becomes available.

        Fees for specified consulting services with respect to the Client’s assets will be determined
        by the Firm based upon the specific scope of services. Such fees shall be communicated to
        and agreed upon with Client (which may be via electronic mail) in advance of such services.

        For an illustrative example of the Firm’s fee calculation, please see the Firm’s Form CRS.

        In addition, while the Firm presently does not charge or collect incentive or performance-
        based fees, in the future and only with Client consent the Firm may collect an Incentive Fee
        (as defined below) equal to a certain percentage of the net income generated for a Client
        (whether in an SMA or a Fund), as discussed in Item 6, below.

        No supervised person accepts compensation (e.g., brokerage commissions) for the sale of
        securities or other investment products.

B.       Payment of Fees: Management Fees will be calculated and payable monthly or quarterly,
         in advance or in arrears, as specified in the applicable Investment Management Agreement.

C.       Additional Fees and Expenses: The Firm will be responsible for its own costs and
         expenses of operations. Such costs and expenses include normal operating overhead and
         the cost of providing relevant support and administrative services (e.g., employee
         compensation and benefits, rent, office equipment, computer systems, insurance, utilities,
         telephone, secretarial and bookkeeping services, etc.).

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          Nonetheless, Clients will bear all their own direct and indirect expenses. In addition,
          Clients will incur brokerage and other transaction costs. Clients should review Item 12,
          which discusses conflicts of interest related to brokerage practices.

          Details concerning applicable fees and expenses are set forth in each Client’s respective
          Investment Management Agreement.

 D.      Withdrawal: Subject to certain restrictions described in the Investment Management
         Agreements, in the event that an Investment Management Agreement is terminated with
         respect to, or by, the Firm, the Firm shall be entitled to, and Client shall pay, the
         Management Fees and the Incentive Fee, if any, which shall be computed (i) with respect
         to the Management Fees, on a pro rata basis, based upon the portion of the month for which
         the Firm performed investment advisory services with respect to Client assets, and (ii) with
         respect to the Incentive Fee, if any, as if the effective date of termination was the last day
         of the then current calendar quarter.

 E.      Fees Paid in Advance: Management Fees are generally paid quarterly or monthly in
         advance. The Firm generally deducts Management Fees from Clients’ assets quarterly or
         monthly, as applicable per the Clients’ Investment Management Agreements; however,
         there are cases where the Firm bills a Client separately. In the event of a withdrawal,
         distribution, transfer or termination during a monthly or quarterly period, the Management
         Fee would be refunded or adjusted on a prorated basis, as appropriate.

F.       Additional Compensation of Supervised Persons: Neither the Firm nor any of its
         supervised persons accepts compensation for the sale of securities or other investment
         products. However, the Firm may pay solicitors of the Firm’s advisory services subject to
         the disclosure and other requirements of the Investment Advisers Act of 1940, as amended.

Item 7. TYPES OF CLIENTS

As discussed in the Advisory Business section above, the Firm will provide advisory services to
sophisticated investors (individuals and entities, including pooled investment vehicles) on a
discretionary basis in accordance with such Client’s Investment Management Agreement.

The minimum initial assets under management for a Client generally will be determined by the
Firm and the Client and will generally be set out in the Client’s Investment Management
Agreement. Any minimum amounts may be waived by the Firm in its discretion.

For information regarding minimum investment amounts in any specific SMA or Fund vehicle,
please refer to the relevant Investment Management Agreement or, in the case of a Fund, the Fund’s
offering materials.