KG Capital Management LLC

Item 5 – Fees and Compensation

A.      Fee Schedule
PORTFOLIO MANAGEMENT & INVESTMENT SUPERVISORY SERVICES
KG charges an annual investment advisory fee based on the total assets under management
as follows:

           Assets Under Management                     Maximum Annual Fee

                 $0 - $2,000,000                               1.50%

            $2,000,001 - $4,000,000                            1.25%

                Above $4,000,000                                .75%

This is a tiered fee schedule, meaning the entire account is charged the same management
fee.

Fees are billed monthly in advance based on the amount of assets managed as of the close
of business on the last business day of the previous billing period.

Investment advisory fees are negotiable. KG may group certain related Client accounts, often
known as “householding”, for the purposes of achieving the minimum annualized fee.

HELD-AWAY ASSETS
For Client accounts held at a custodian that is not directly accessible by KG, such as held-

away assets, KG can manage those assets via a third-party platform which allows KG to view
and manage these assets in a discretionary manner. Held-away assets will be included in the
Client’s total assets subject to the fee schedule above. However, as it might not be possible
to directly debit the fees from these accounts, those fees will be deducted from the Client’s
non-qualified account(s), or the Client will be billed directly.
ERISA PLAN SERVICES
The annual fees are based on the market value of the Included Assets and shall not exceed
1.50%. Fees may be charged quarterly or monthly in arrears or in advance based on the
assets as calculated by the custodian or record keeper of the Included Assets (without
adjustments for anticipated withdrawals by Plan participants or other anticipated or
scheduled transfers or distribution of assets) on the last business day of the previous billing
period.

The fee schedule, which includes compensation of KG for the services provided, is described
in detail in the ERISA Plan Agreement. The Plan is obligated to pay the fees; however, the
Plan Sponsor may elect to pay the fees. Clients may elect to be billed directly or have fees
deducted from Plan Assets. KG does not reasonably expect to receive any additional
compensation, directly or indirectly, for its services. If additional compensation is received,
KG will disclose this compensation, the services rendered, and the payer of compensation.

FINANCIAL PLANNING AND CONSULTING
KG charges an hourly fee for financial planning and consulting. Prior to the planning process
the Client will be provided an estimated plan fee which will be based on the complexity of the
engagement. For hourly fee arrangements, fees are paid in advance, but never more than six
(6) months in advance. Services will be completed and delivered within six (6) months
contingent upon timely delivery of all required documentation. KG reserves the right to waive
the fee should the Client implement the plan through KG.

       HOURLY FEES
       Hourly fee services are offered based on an hourly fee of $250 per hour. Fees for
       financial plans are billed upon completion of the plan.

B.      Payment of Fees
Portfolio Management & Investment Supervisory Service fees are generally deducted directly
from the Client’s Account.

ERISA fees are generally deducted directly from the Client’s/Plan Assets.

Financial Planning and Consulting fees are generally invoiced directly to the Client but may
also be deducted from another account held with KG.

KG, in its sole discretion, may charge a lesser investment advisory fee based upon certain
criteria (e.g., historical relationship, type of assets, anticipated future earning capacity,
anticipated future additional assets, dollar amounts of assets to be managed, related
accounts, account composition, negotiations with Clients, etc.).

For all services, Clients may terminate their engagement with KG within five (5) business days
of signing an Agreement with no obligation and without penalty. After the initial five (5)
business days, the Agreement may be terminated by KG with thirty (30) days written notice
to Client and by the Client at any time with written notice to KG. For accounts opened or
closed mid-billing period, fees will be prorated based on the days services are provided during
the given period. In the case of hourly engagements, fees will be prorated based on the work
completed at the stated hourly rate. All unpaid earned fees will be due to KG and all unearned
fees will be refunded to the Client within fourteen (14) business days. Any increase in fees
will be acknowledged in writing by both parties before any increase in said fees occurs.

C.      Additional Fees
Custodians may charge brokerage commissions, transaction fees, and other related costs
on the purchases or sales of mutual funds, equities, bonds, options, margin interest, and
exchange-traded funds. Mutual funds, money market funds, and exchange-traded funds may
also charge internal management fees, which are disclosed in the fund’s prospectus. KG does
not directly receive any compensation from these fees. These fees are in addition to the
management fee you pay to KG. For more details on the brokerage practices, see Item 12 of
this brochure.

D.    Prepayment of Fees
KG does not expect Clients to prepay fees.

E.     External Compensation for the Sale of Securities
Certain Investment Advisor Representatives of KG may also be registered as Registered
Representatives of a broker-dealer, which allows them to perform brokerage services for
Clients by executing security transactions. This practice represents a conflict of interest
because the Investment Advisor Representatives can choose between offering Client’s fee-
based programs and services (as is typical of an advisory relationship) and/or commission-
based products and services (as is typical of a brokerage relationship). While a Client
...

Item 7 – Types of Clients & Account Minimums

KG’s Clients are generally individuals, small businesses, trusts, estates, and high net-worth
individuals. Client relationships vary in scope and length of service.

There is no minimum account size, and Clients are not required to have a certain amount of
investment experience or sophistication.