Knox Avenue Financial Corp

Item 5 Fees and Compensation

The following types of fees will be assessed:

Asset Management – Fees are charged in advance and are based primarily on asset size and the
level of complexity of the services provided. In individual cases, Knox Avenue Financial Corp.
has the sole discretion to negotiate fees that are lower than the standard fee shown or to waive
fees. Fees are not based on the share of capital gains or capital appreciation of the funds or any
portion of the funds. Comparable services for lower fees may be available from other sources.
Fees for the initial quarter will be prorated based upon the number of calendar days in the
calendar quarter that the advisory agreement is in effect. Fees are based on the market value of
the assets on the last business day of the previous quarter. Annual fees range from .50% - 1.50%
depending on the amount of assets under management (“AUM”) – See chart below. Assets
deposited into, or withdrawn from, your account between billing cycles may result in additional
or less management fees being billed to you. Therefore, a pro-rata fee based upon the number of
days remaining in the current quarterly period may be assessed to you, or deducted. Consulting
services are included in these fees for asset management services with the exception of unique
circumstances that may require a separate agreement for financial planning/consulting services
(description and fees are discussed below). If the situation warrants separate financial planning
fees, it will be discussed upfront and a separate agreement will be negotiated.

Blended Fee Schedule for Asset Management:

· 0 - $250,000: 1.50%

· $250,000 – $500,000: 1.25%

· $500,000 - $1,000,000: 1.00%

· $1,000,000 - $3,000,000: 0.75%

· $3,000,000 and above: 0.50%

* There may be an annual account fee charged by us in the amount of $25.00.

As authorized in the client agreement, the account custodian withdraws Knox Avenue Financial
Corp.’s advisory fees directly from the clients’ accounts according to the custodian’s policies,
practices, and procedures. The custodial statement includes the amount of any fees paid to Knox
Avenue Financial Corp. for advisory services. You should carefully review the statement from
your custodian/broker-dealer’s statement and verify the calculation of fees. Your
custodian/broker-dealer does not verify the accuracy of fee calculations.

Fees are charged in advance on a quarterly basis, meaning that advisory fees for a quarter are
charged on the first day of the quarter. Clients may terminate investment advisory services
obtained from Knox Avenue Financial Corp., without penalty, upon written notice within five (5)
business days after entering into the advisory agreement with Knox Avenue Financial Corp.
The client is responsible for any fees and charges incurred by the client from third parties as a
result of maintaining the account such as transaction fees for any securities transactions executed
and account maintenance or custodial fees. Thereafter, the client may terminate advisory
services upon written notice delivered to and received by Knox Avenue Financial Corp. Clients
who terminate investment advisory services during a quarter are charged a prorated advisory fee
based on the date of Knox Avenue Financial Corp.’s receipt of client’s written notice to
terminate. Any earned but unpaid fees are immediately due and payable.

Financial Planning – Financial planning services are charged in advance through a fixed fee as
agreed upon between the client and Knox Avenue Financial Corp. There will never be an
instance where $500 or more in fees is charged six or more months in advance. Fees are
negotiable and vary depending upon the complexity of the client situation and services to be
provided. Fixed fees for financial planning/consulting projects range from $250 to $10,000 per
project.

Clients who wish to terminate the planning process prior to completion may do so with written
notice. The client may obtain a refund of a pre-paid fee if the advisory contract is terminated
before the end of the project by contacting Joseph Brill at 952-426-4352. Upon receipt of
written notification, any earned fee will immediately become due and payable. A client may
terminate an advisory agreement without being assessed any fees or expenses within five (5)
days of its signing.

Additional Fees and Expenses

In addition to advisory fees paid to Knox Avenue Financial Corp. as explained above, clients
may pay custodial service, account maintenance, transaction, and other fees associated with
maintaining the account. These fees vary by broker and/or custodian. Clients should ask Knox
Avenue Financial Corp. for details on transaction fees or other custodial fees specific to their
account, as these fees are not included in the annual advisory fee. Knox Avenue Financial Corp.
does not share any portion of such fees. Additionally, for any mutual funds purchased, the client
may pay their proportionate share of the funds’ distribution, internal management, investment
advisory and administrative fees. Such fees are not shared with Knox Avenue Financial Corp.
and are compensation to the fund manager. Clients are urged to read the mutual fund prospectus
prior to investing.

Mutual fund companies impose internal fees and expenses on clients. These fees are in addition
to the costs associated with the investment advisory services as described above. Complete
details of such internal expenses are specified and disclosed in each mutual fund company’s

prospectus. Clients are strongly advised to review the prospectus(es) prior to investing in such
securities.

Mutual funds purchased or sold in broker-dealer accounts may generate transaction fees
that would not exist if the purchase or sale were made directly with the mutual fund
company.

Mutual funds held in broker-dealer accounts also charge management fees. These mutual
fund management fees may be more or less than the mutual fund management fees charged if
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Item 7 Types of Clients

Knox Avenue Financial Corp. offers investment advisory services to individuals and
small businesses. There is no minimum account size to open and maintain an advisory
account.