Kinetic Investment Management Inc

Item 5: Fees and Compensation

 Lower fees for comparable services may be available from other sources.

  A. Fee Schedule

 Portfolio Management Fees

 These fees are negotiable depending upon your needs and the complexity of the situation. The final
 fee schedule is attached as Exhibit II of the Investment Advisory Contract. Lower fees for comparable

services may be available from other sources.

You may terminate the agreement without penalty for a full refund of our fees within five business
days of signing the Investment Advisory Contract. Thereafter, clients may terminate the Investment
Advisory Contract upon written notice.

Kinetic Investment Management may direct clients to internally managed strategies and/or other third-
party investment advisers. All fees are collected by the third-party investment advisers and are then
shared with Kinetic Investment Management who receives its fee paid directly from the third-party
adviser. The notice of termination requirement and payment of fees for third-party investment advisers
will depend on the specific third-party advisers selected.

Sub-Advisory Fees

Kinetic Investment Management receives pre-negotiated fees from advisors for providing back-office
investment management services and access to third-party investment advisers. Our fees are deducted
from the advisor fee. The advisor fee is itemized on the third-party adviser’s platform on the statement of
investment selection. Kinetic Investment Management is shown as the adviser/sub-adviser.

Financial Planning Fees

The negotiated fixed rate for creating a financial plan for a client is between $1,000 and $10,000. Fixed
fees relate to financial plans and financial planning that may include without limitation: investment
planning, tax planning, retirement planning, insurance planning, and estate planning.

Fixed Fees

Tier one - $1,000

Client Services

   •       Annual meetings
   •       Review performance of accounts held at Kinetic Investment Management
   •       Portfolio allocation change recommendations

Written Reports

   •       Progress report for accounts held at Kinetic Investment Management
   •       Quarterly account statements

Tier Two - $3,000

Client Services

   •       Annual meetings
   •       Review performance of accounts held at Kinetic Investment Management
   •       Portfolio allocation change recommendations
   •       Information on new and different options available

   Written Reports

   •       Progress report for accounts held at Kinetic Investment Management
   •       Quarterly account statements
   •       Asset allocation analysis and recommendations

Tier Three - $5,000

Client Services

   •       Annual meetings
   •       Review performance of accounts held at Kinetic Investment Management
   •       Portfolio allocation change recommendations
   •       Information on new and different options available
   •       Insurance and protection planning analysis and recommendations

Written Reports

   •       Progress report for accounts held at Kinetic Investment Management
   •       Quarterly account statements
   •       Asset allocation analysis and recommendations
   •       Financial goals analysis and current strategy comparison

Tier Four - $8,000

Client Services

   •       Quarterly meetings
   •       Review performance of all investment accounts
   •       Portfolio allocation change recommendations
   •       Information on new and different options available
   •       Insurance and protection planning analysis and recommendations
   •       Employer sponsored retirement plan review
   •       Unlimited access to advice via phone and email

Written Reports

   •       Progress report for all accounts
   •       Quarterly account statements
   •       Asset allocation analysis and recommendations
   •       Financial goals analysis and current strategy comparison
   •       Financial status including net worth and cash flow analysis

Tier Five - $10,000

Client Services

   •       Quarterly meetings
   •       Review performance of all investment accounts

   •       Portfolio allocation change recommendations
   •       Information on new and different products available
   •       Insurance and protection planning analysis and recommendations
   •       Employer sponsored retirement plan review
   •       Discuss economic and market conditions
   •       Tax planning analysis and recommendations
   •       Unlimited access to advice via phone and email

Written Reports

   •       Progress report for all accounts
   •       Quarterly account statements
   •       Asset allocation analysis and recommendations
   •       Financial goals analysis and current strategy comparison
   •       Financial status including net worth and cash flow analysis
   •       Estate planning and analysis
   •       Charitable planning

It is anticipated that each financial planning service listed above will take approximately 2-4 hours of
financial planning and therefore the time to complete a financial plan will depend on the services
required by the client. For example, the financial plan for a client requiring investment planning,
retirement planning, and insurance planning will usually require 6-12 hours.

The fees are negotiable, and the final fee schedule will be attached as Exhibit II of the Financial Planning
Agreement. Kinetic Investment Management and you will ultimately determine the negotiated fixed fee
depending on the specific financial planning services that you require, the need to consider dependents
or other individuals, the diversity of your assets to be addressed by the financial plan, and
conversations with the you. Fixed fees are offered to all clients.

You may terminate the agreement without penalty for a full refund of our fees within five business
days of signing the Financial Planning Agreement. Thereafter, you may terminate the Financial Planning
...

Item 7: Types of Clients

We generally provide advisory services to the following types of clients:

            ❖   Individuals
            ❖   High-Net-Worth Individuals
            ❖   Pension and Profit-Sharing Plans
            ❖   Business Entities

There is no account minimum for any of our services.