Key Group Management Inc

Item 5: Fees & Compensation

Compensation for Our Advisory Services

Comprehensive Portfolio Management:

                 Assets Under Management          Annual Percentage of Assets Charge
                       $0 to $5,000,000                        1.25%
                  $5,000,001 to $10,000,000                    0.75%
                        $10,000,000 +                          0.50%

Fees to be assessed will be outlined in the advisory agreement to be signed by the Client. Annualized
fees are billed on a pro-rata basis quarterly in advance based on the value of the account(s) on the
last day of the previous quarter. Fees are negotiable and will be deducted from client account(s). In
rare cases, our firm will agree to directly invoice. As part of this process, Clients understand the
following:

    a) The client’s independent custodian sends statements at least quarterly showing the market
       values for each security included in the Assets and all account disbursements, including the
       amount of the advisory fees paid to our firm;
    b) Clients will provide authorization permitting our firm to be directly paid by these terms. Our
       firm will send an invoice directly to the custodian; and

ADV Part 2A – Firm Brochure                     Page 5                                 Key Group Management

    c) If our firm sends a copy of our invoice to the client, a legend urging the comparison of
       information provided in our statement with those from the qualified custodian will be
       included.

Financial Planning & Consulting:

Our firm charges on an hourly or flat fee basis for financial planning and consulting services. The total
estimated fee, as well as the ultimate fee charged, is based on the scope and complexity of our
engagement with the client. The maximum hourly fee to be charged will not exceed $300. Flat fees
range from $1,500 to $10,000. Our firm requires a retainer of 50% of the ultimate financial planning
or consulting fee at the time of signing. The remainder of the fee will be directly billed to the client
and due within 30 days of a financial plan being delivered or consultation rendered. Our firm will not
require a retainer exceeding $1,200 when services cannot be rendered within 6 months.

Other Types of Fees & Expenses

Clients will incur transaction fees for trades executed by their chosen custodian, via individual
transaction charges. These transaction fees are separate from our firm’s advisory fees and will be
disclosed by the chosen custodian. Charles Schwab & Co., Inc. (“Schwab”) does not charge transaction
fees for U.S. listed equities and exchange traded funds.

Clients may also pay holdings charges imposed by the chosen custodian for certain investments,
charges imposed directly by a mutual fund, index fund, or exchange traded fund, which shall be
disclosed in the fund’s prospectus (i.e., fund management fees, initial or deferred sales charges,
mutual fund sales loads, 12b-1 fees, surrender charges, variable annuity fees, IRA and qualified
retirement plan fees, and other fund expenses), mark-ups and mark-downs, spreads paid to market
makers, fees for trades executed away from custodian, wire transfer fees and other fees and taxes on
brokerage accounts and securities transactions. Our firm does not receive a portion of these fees.

Termination & Refunds

Either party may terminate the advisory agreement signed with our firm for Comprehensive
Portfolio Management services in writing at any time. Upon notice of termination our firm will
process a pro-rata refund of the unearned portion of the advisory fees charged in advance.

Financial Planning & Consulting clients may terminate their agreement at any time before the
delivery of a financial plan by providing written notice. For purposes of calculating refunds, all work
performed by us up to the point of termination shall be calculated at the hourly fee currently in effect.
Clients will receive a pro-rata refund of unearned fees based on the time and effort expended by our
firm.

Commissionable Securities Sales

Representatives of our firm are registered representatives of Royal Alliance Associates, Inc. (“Royal
Alliance”), member FINRA/SIPC. As such they are able to accept compensation for the sale of
securities or other investment products, including distribution or service (“trail”) fees. Clients should
be aware that the practice of accepting commissions for the sale of securities presents a conflict of
interest and gives our firm and/or our representatives an incentive to recommend investment
products based on the compensation received. Our firm generally addresses commissionable sales

ADV Part 2A – Firm Brochure                    Page 6                                 Key Group Management

conflicts that arise when explaining to clients these sales create an incentive to recommend based on
the compensation to be earned and/or when recommending commissionable mutual funds,
explaining that “no-load” funds are also available. Our firm does not prohibit clients from purchasing
recommended investment products through other unaffiliated brokers or agents.

Item 7: Types of Clients & Account Requirements

Our firm provides advisory services to Individuals and High Net Worth Individuals;

Our requirements for opening and maintaining accounts or otherwise engaging us:
   • Our firm requires a minimum account balance of $250,000 for our Comprehensive Portfolio
       Management. Generally, this minimum account balance requirement is not negotiable and
       would be required throughout the course of the client’s relationship with our firm.
   • Written financial plans are generally assessed a minimum fee of $1,500.