Kaltbaum Capital Management LLC

Item 5 Fees and Compensation

Compensation for the Advisor’s investment management services is derived as fee income based
upon the percentage of assets under management. The compensation method is explained and agreed
with the clients in advance before any services are rendered.

Asset based management fees range up to 2.00% of assets placed under management. The amount
of the fee is negotiated on a case-by-case basis, and is determined based upon a number of factors

including but not limited to the amount of work involved, the assets placed under management and
the attention needed to manage the account. These fees are for advisory services only and do not
include any applicable transaction fees, taxes or commissions (please refer to Item 12 (Brokerage
Practices)).

                              From: $0.00 - $500,000.00 up to 2%
                          From: $500,000.00 - $1,000,000.00 up to 1.5%
                           From: $1,000,000.000 and above up to 1%

Asset based management fees are generally billed quarterly in advance at one fourth of the annual
rate based on a percentage of the client's assets under management at the end of the previous quarter.
The value of the account includes money market fund and cash balances. Any contributions and/or
withdrawals made during a calendar quarter will cause an adjustment to the advisory fee.

Fees will generally be deducted directly from the client's brokerage account pursuant to a written
agreement, however clients may request that the Company send quarterly invoices to be paid by
check. Investment advisory services begin with the effective date of the Agreement, which is the date
the client signs the Investment Advisory Agreement. For that calendar quarter, fees will be adjusted
pro rata based upon the number of calendar days in the calendar quarter that the Agreement was
effective.

On occasion, clients should be aware of their responsibility to verify the accuracy of the fee
calculation submitted to the custodian by the Company, as the custodian will not determine whether
the fee has been properly calculated. The fee collected by the Company will appear on the client’s
custodial statement.

Additional Fees and Expenses. The fees that clients pay Kaltbaum for investment advisory services
are separate and distinct from the internal fees and expenses charged by mutual funds (described in
each fund’s prospectus) to their shareholders. The fees charged directly by mutual funds will typically
include a management fee and other fund expenses.

Clients will incur transaction charges and/or brokerage fees when purchasing or selling securities.
These charges and fees are typically imposed by the broker-dealer or qualified custodian through
which account transactions are executed. For more information on our brokerage practices, please
refer to Item 12 (Brokerage Practices) of this Brochure.

To fully understand the total costs associated with their investment portfolio, clients should review
all the fees charged by mutual funds, our Company, and others.

Brokerage Commissions. Kaltbaum does not receive brokerage commissions from the sale of
securities or other investment products. Our compensation for recommending securities and
investment products is limited to the advisory fees described above.

Investment Management Termination. The Company’s service may be terminated by either party
upon written or oral notification in accordance with the applicable contractual notice of termination.
Upon termination, the fees charged for advisory services will be pro-rated and a refund for any
unearned fees will be issued. The client is responsible to pay for services rendered until the
termination of the Agreement.

Investment Research Consulting Fees. For these services, fees are $750 per quarter for individuals.
For Institutions, fees are negotiated based on a variety of factors including but not limited to the nature
and complexity of the services, frequency of reports, amount of time involved in preparing reports,
amount of time spent with clients and amount asked to produce. Kaltbaum will invoice clients as
fees are due.

Investment Research Consulting Termination. If these services are terminated, Kaltbaum will
refund the amount of any prepaid fees that may be owed.

Item 7 Types of Clients

The Company primarily provides investment management services to individuals and high net worth
individuals. The minimum amount required to establish and maintain an account is generally
$500,000. However, the Company reserves the right, in its sole discretion, to reduce the minimum
requirement for certain accounts under certain circumstances.