Koenig Investment Advisory LLC

Item 5: Fees and Compensation

Description of Advisory Fees
Koenig charges annual advisory fees which are based on a percentage of the client’s assets under
management. There is generally no separate fee for financial planning advice, newsletter publication, or
any other service provided to clients.

The annual advisory fee is based on a percentage of the investable household assets according to the
following schedule:

             Assets Under Management                                   Annual Asset-Based Fee
    Assets up to $500,000                                                      1.00%
    Assets $500,001 - $1,000,000                                               0.75%
    Assets in excess of $1,000,000                                             0.50%

Our advisory fees are typically billed quarterly, in arrears. Households will be assessed fees based on the
combined market value of all accounts (as such market value is calculated by the Custodian) as of the close
of business as of the last day of each quarter. Deposits and withdrawals will be credited or debited on a
pro-rata basis based on the date they become or are no longer available for management.

Advisory fees for new clients are generally not negotiable; however, certain clients may pay advisory fees
at lower rates (or which are otherwise materially different) based on legacy arrangements with our firm.
Koenig reserves the right, in its sole discretion, to adjust its advisory fees for certain clients based upon
various factors (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.) it deems relevant.

KOENIG INVESTMENT ADVISORY, LLC                                                           FORM ADV PART 2A

Clients may have inherited or previously purchased securities that they do not wish to sell upon
enteringinto a relationship with Koenig due to tax considerations, or for other reasons. Such
securities may be excluded from our management and oversight and thus from our calculation of
advisory fees on a case- by-case basis. Employer-directed and employee-directed accounts are
billed at the same rate as any other account up to $2 million in assets for a household.
Households in an employer-based plan with more than $2 million in assets will pay a flat 0.5%
fee. Each employee is considered a separate household. Lower fees for comparable services may
be available from other sources.

Fee Billing Procedures
Our advisory fees shall typically be directly deducted from the client’s designated account held at the
Custodian upon the client’s written approval of such arrangement and our quarterly submission to the
Custodian of a written invoice or statement reflecting the amount of advisory fees to be charged. Your
authorization for our direct deduction of advisory fees is set forth in our written investment advisory
agreement and/or the account opening documents of your Custodian(s). In instances where we may agree
to bill the client manually for our services, we will invoice you by mail, e-mail, or other agreed upon
delivery method on a quarterly basis. All manually billed fees shall be due upon invoice receipt.

The Custodian will independently send an account statement to you at least quarterly, identifying the
amount of funds and each security in your account at the end of the period and setting forth all
transactions in the account during the period, including the amount of any advisory fees paid directly to
us. We encourage you to review the Custodian’s account statements carefully and promptly upon receipt
and to compare them to any account statements or reports provided by Koenig. If you believe we have
miscalculated our advisory fees or if there is any other issue with your account, you should contact us
immediately at the phone number listed on the cover page of this firm brochure.

Other Fees and Costs
Our advisory fees cover the costs of our investment advice only. You will be separately responsible to pay
all of the following costs (as applicable): transaction-based fees, commissions, and other charges
traditionally paid to broker-dealers as a result of activity in your investment account(s); custodial fees and
charges, margin fees, taxes, wire transfer fees, reporting fees, and similar charges of the Custodian; and
all internal management fees, redemption/surrender charges, and other costs and expenses associated
with the purchase and sale of pooled investment vehicles such as mutual funds, ETFs, and/or variable
products for your account. To fully understand the total cost you will incur when engaging our services,
you should review the prospectus of each mutual fund, ETF, and variable product in which you invest and
the contractual arrangement entered with your account Custodian. While we do not share in any of the
foregoing additional fees and expenses, their impact on the overall performance of client accounts is
always analyzed before trades are placed.

Clients retain the right to purchase investment products that we recommend through third parties not
affiliated with Koenig.

Past Due Accounts and Failure to Provide Information
Koenig reserves the right to stop work on any account that is more than 30 days overdue. In addition,
Koenig reserves the right to terminate any relationship where we have determined that the client has
willfully concealed or has refused to provide pertinent information related to their financial circumstances
which we view as necessary to provide proper financial advice and/or to comply with our fiduciary duty.

KOENIG INVESTMENT ADVISORY, LLC                                                        FORM ADV PART 2A

No Compensation For Sales of Securities or Insurance Products
As described above, we are a “fee-only” investment advisor. This means that neither our firm, nor any of
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Item 7: Types of Clients

Koenig generally provides investment advice to individuals, high net worth individuals, pension and profit-
sharing plans, trusts, estates, and charitable organizations, corporations, and other business entities.
Client relationships vary in scope and length of service.

The minimum account size is $250,000 of assets under management, which equates to an annual fee of
$2,500. Koenig has the discretion to waive these minimums. For example, accounts of less than $250,000
may be accepted when the client and the firm anticipate the client will add additional funds to the
account, bringing the total to $250,000 within a reasonable time. Other exceptions will apply to employees
of Koenig and their relatives, existing clients, or relatives of existing clients.

KOENIG INVESTMENT ADVISORY, LLC                                                            FORM ADV PART 2A