KPP Advisory Services LLC

Item 5 – Fees and Compensation
Financial Planning Services
KPPAS Financial Planning fee will be determined based on the nature of the services provided and
the complexity of each Client’s circumstances. All fees are agreed upon prior to entering into a
contract with any Client. These fees are calculated and charged on either an hourly basis or a
fixed fee basis. Although the length of time it will take to provide a Financial Plan will depend on
each Client’s personal situation and complexity of the Client’s circumstances, we will provide an
estimate for the total hours or the amount of the fixed fee at the start of the advisory relationship
and upon beginning the planning process.

The Client shall pay KPPAS for services provided, a fee of an hourly rate ranging from $200 to
$300. The financial planning fee may be calculated and charged on a fixed fee basis, typically
ranging from $1,000 to $10,000, subject to the specific arrangement reached with the Client. The
hourly fee and fixed fee rates are negotiable. The Client agrees to pay KPPAS upon completion of

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services according to the terms of the Financial Planning Services Agreement. Client agrees that
service shall be deemed completed upon Client’s receipt of a financial plan or project report. To
the extent Client requests additional consulting services, fees for such services shall be
determined and payable in advance.

Upon termination of the agreement, any prepaid unearned fee will be refunded to the Client. Any
fee for services already completed and yet unpaid shall be billed to the Client. Client agrees to
pay such bill promptly.

Investment Management and Wealth Management Fees
Each investment advisor representative at KPPAS has an individual fee schedule based on the
unique services they provide their Clients. The account fee charged to the Client for each advisory
program is negotiable, subject to a maximum account fee of 2.50%.

Fees are computed and billed quarterly, in advance, and are based on the market value of the
Client’s account on the last day of the month in the prior quarter. Fees will be prorated on a
monthly basis, with respect to new accounts opened during a quarter. Management fees are
deducted from our Client’s account. LPL Financial will make quarterly adjustments for deposits
and withdrawals in the Client accounts. As part of this process, you understand and acknowledge
the following:

       a) LPL Financial & Fidelity as the custodian are required to send statements at least
          quarterly to Clients showing all disbursements for their account, including the amount
          of the advisory fees paid to the firm; and
       b) The Client provides authorization permitting fees to be directly paid by these terms;
       c) LPL financial calculates the advisory fees and deducts them from the Client’s account.
       d) KPPAS calculates the advisory fees for accounts held at Fidelity. Snapshots of the
          account values used to calculate these fees are taken at the end of quarters 1 -4 and
          deducted from the Client’s accounts. Any account opened between quarters will be
          pro-rated on a look-back basis and charged at the first quarter’s billing with the
          regular quarterly fee.

Arrears Billing: Arrears billing is a necessary adjustment which charges an account for assets
deposited before a fee is assessed because advisory accounts are typically billed in advance.
Calculations for arrears billing are as follows:
              [Initial Deposit x Advisory Fee]/360 x Prorated Days = Arrears Billing

Advanced Billing: Advanced billing is done on a quarterly basis and is the primary way Account
Fees are assessed to advisory accounts. Calculations are as follows:
             [Quarter End Value x Advisor Fee] / 360 x 90 days = Advanced Billing

Total Initial Billing:
             Arrears Billing + Advanced Billing = Total Initial Billing

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Limited Negotiability of Advisory Fees: Although each IAR at KPPAS has established fee
schedules, we retain the discretion to negotiate alternative fees on a Client-by-Client basis. Client
facts, circumstances and needs will be considered in determining the fee schedule. These include
the complexity of the Client, assets to be placed under management, anticipated future additional
assets, related accounts, portfolio style, account composition, reports, among other factors. The
specific annual fee schedule will be identified in the contract between the advisor and each Client.

We are compensated by a fee for managing our Clients’ portfolios based on the assets we manage,
and we receive no other form of compensation related to the management thereof. Fees are
negotiated based on portfolio size. The account fee charged to the Client for each advisory
program is negotiable subject to a maximum account fee of 2.50%.

Fee schedules may be amended from time to time by the Advisor upon at least forty-five (45)
days’ advance written notice to Client, subject to Client’s right to terminate the Agreement before
an increased fee schedule takes effect upon at least thirty (30) days written notice to Advisor.

Upon termination, advisory fees will be prorated to the effective date of termination. Client will
promptly be sent a refund of any fees paid but not yet earned through the effective date of
termination.

Where acting in the capacity of a registered representative, IARs of KPPAS may, as broker or
agent, effect securities transactions for typical and customary compensation. Clients are not
obligated to use IARs of KPPAS to execute such securities transactions. Commissions and other
compensation for the sale of investment products, including asset-based distribution fees from
the sale of mutual funds, currently provide the primary compensation from investment-related
services provided by KPP Advisory Services LLC.
...

Item 7 – Types of Clients
KPPAS currently provides investment management services to:

    •   Individuals and their families (including high net worth individuals)
    •   Trusts and Estates
    •   Charitable Organizations and Foundations
    •   Retirement Accounts such as Pension and Profit Sharing Plans
    •   Businesses and Corporations not listed above
    •   Pooled investment vehicles (other than investment companies)

Our ability to provide our service and advice depends on access to important information.
Accordingly, you are expected to provide us with an adequate level of information and supporting
documentation throughout the term of the engagement, including but not limited to: source of
funds; income levels, your (or your legal agent’s) authority to act on behalf of the account, among
other information. This helps us determine the appropriateness of our financial planning or
investment strategy for you and your account.

It is very important that you keep us up to date on significant changes that may call for an update
to your financial and investment plans. Events such as job changes, retirement, changes in
marital status, or the purchase or sale of a home can have a tremendous impact on your
circumstances and needs. If we are aware of such events, we can make the adjustments needed to
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your plan or advice in order to keep you on track toward your goals.

Our firm reserves the right to waive or reduce certain fees based on unique individual
circumstance, special arrangements, pre-existing relationships or as otherwise may be determined
by the firm principal(s). We also reserve the right to decline services to any prospective Client for
any non-discriminatory reason.

As previously disclosed in Item 4, our firm has established certain initial minimum account
requirements based on the nature of the service(s) being provided. Requirements are as follows:

   •   Optimum Market Portfolios Program (OMP)
          o A minimum account value of $1,000 is required for OMP.
   •   Personal Wealth Portfolios Program (PWP)
           o A minimum account value of $250,000 is required for PWP.
   •   Model Wealth Portfolios Program (MWP)
           o A minimum account value of $25,000 is required for MWP.
   •   Manager Access Select Program
           o A minimum account value of $50,000 is required; however, in certain instances,
              the minimum account size may be lower or higher.
   •   Strategic Wealth Management (SWM)
           o There is no minimum account requirement for SWM
   •   Separate Account Network (SAN)
           o Minimum fees dependent upon the minimum required by portfolio manager
              selected.