Krane Financial Solutions LLC

Item 5: Fees and Compensation

Investment Management Fees
Krane Financial charges each client an annualized quarterly investment management fee (i.e., determined
quarterly based on a 365-day calendar),1 for investment management services, which is calculated
quarterly and payable in advance. Quarterly fees are calculated at the beginning of each quarter and are based
on the total market value as of the end of the previous calendar quarter that is received from the client’s
custodian (which includes cash and cash equivalents and any margin balance) for each client’s account(s)
managed by Krane Financial.

Should a client open an account with Krane Financial during a quarter, our investment management fee
for the quarter will be due and payable at the time the client opens the account(s) with us and prorated
based on the amount of initial assets in the account(s) and the number of days remaining in the quarter. In
the event that our services are terminated any time during a quarter, our investment management fee shall
be prorated through the date of termination as defined in the Agreement and any pre-paid unearned fees
will be refunded to the client. Krane Financial does not adjust fees for additions or withdrawals.

The range of Krane Financial’s annual investment management fee is 0.20% to 1.50% of a client’s total
market value of each managed account. The percentage that will be charged is negotiated with each new

  The quarterly fee percentage will vary by quarter since it is based on the number of calendar days in a billing period; however,
the total quarterly percentages for each calendar year will not exceed the annual fee percentage charged to a client.

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client and based on a number of factors, including but not limited to the amount of assets under
management and complexity of services. Krane Financial does have clients with different fee
structures/percentages and calculation methodology than what is stated above, including fixed fee
arrangements.

There are times when Krane Financial recommends that a client utilize a margin account. The use of
margin in an investment advisory account will likely increase a client’s asset-based fee. If margin is used
to purchase additional securities, the total value of eligible account assets increases, as does the client’s
asset-based investment management fee paid to the Advisor. In addition, clients will be charged margin
interest on the debit balance in their account. Notably, the increased asset-based advisory fee that a client
pays presents a conflict of interest since there is an incentive for Krane Financial to recommend the use of
margin. However, please note that using margin is not suitable for all investors; the use of margin
increases leverage in a client’s account and therefore increases overall risk. Please refer to Item 8 below
for further information on the risks surrounding margin accounts.

When determining the market value of a client’s account for purposes of calculating asset-based
investment management fees, Krane Financial relies on the market value provided by the clients’
custodian. At the beginning of each calendar quarter, Krane Financial obtains the total market value
amount as of the end of the preceding calendar quarter for each client account and calculates the quarterly
investment management fee. However, clients should be aware that the market value used for calculating
the investment management fee can, and sometimes does, vary from the market value amount reflected on
the custodian statement for the same period that is sent to the client. This mainly is due to the timing of
when Krane Financial obtains the quarter end value from the custodian vs. when the custodian runs their
quarter end reports, which are affected by factors such as accrued interest on fixed income securities,
dividends, and trade settlements.

Krane Financial maintains written valuation policies and procedures, which outline our policy and include
steps the firm will take in the unlikely event that a security price is not provided by the custodian and not
readily available.

Clients give Krane Financial permission via the Agreement to debit the investment management fee
directly from their managed accounts. At the beginning of every quarter, Krane Financial sends an
invoice to each client’s custodian(s), unless a client has arranged to pay the advisory fees to Krane
Financial directly, in which case the Advisor will send the invoice to the client. Upon receipt of an
invoice from Krane Financial, the custodian debits the Advisor’s investment management fees from each
client’s account(s) and pays the fees directly to Krane Financial. All fees debited from a client’s account
and paid to the Advisor are reflected on the client’s account statement provided to the client by the
custodian.

Hourly and Fixed Fees
For financial planning and business consulting services, Krane Financial will charge either an hourly rate
fee or a fixed price fee, as negotiated with each client.

The Advisor’s hourly fee will be billed in the range of $200 to $1000 per hour depending on the
complexity of the project and the individual circumstances of the client and are negotiated and agreed
upon by the parties in advance. Hourly fee-based clients are billed monthly upon completion of work
performed during each month and will receive an invoice from the Advisor, unless a different fee
payment arrangement has been agreed upon between the client and Krane Financial.

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The fixed fee ranges from $500 to $40,000 and will be charged either as a one-time fee or as an annual
retainer depending on the complexity of the project and the individual circumstances of each client.
Fixed fees are negotiated and agreed upon during the initial engagement of the Advisor. Fixed fee clients
...

Item 7: Types of Clients

Krane Financial offers its services to individuals, pension and profit-sharing plans, trust, estates or
charitable organizations, corporations, or other business entities.

Krane Financial does not have any minimum asset requirements for opening or maintaining an account
with the Firm.

When Krane Financial provides investment advice to a client, we are deemed a fiduciary under certain
federal regulations, and within the meaning of Title I of the Employee Retirement Income Security Act
and/or the Internal Revenue Code, as applicable, which are laws governing retirement accounts. The way
the Advisor makes money creates conflicts of interest; however, as a fiduciary, Krane Financial and our
supervised persons are required to always act in our clients’ best interests, which means we must, at a
minimum take the following steps:

      Meet a professional standard of loyalty and care when making investment recommendations.
      Always put our clients’ interests ahead of our own when making recommendations and providing
       services.
      Disclose all conflicts of interest and how the Firm addresses such conflicts.
      Adopt and follow policies and procedures designed to help ensure that we give advice and provide
       services that remain in each client’s best interest.
      Charge an advisory fee that is reasonable for our services.
      Not provide, or withhold, any information that could render our advice and/or services misleading.

If a client’s account is a pension or other employee benefit plan governed by the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), Krane Financial may be a fiduciary to the plan. In
providing our investment advisory services, the sole standard of care imposed upon us is to act with the
care, skill, prudence and diligence under the circumstances then prevailing that a prudent man acting in a
like capacity and familiar with such matters would use in the conduct of an enterprise of a like character

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and with like aims. The Advisor will provide certain required disclosures to the “responsible plan
fiduciary” (as such term is defined in ERISA) in accordance with Section 408(b)(2), regarding the
services we provide and the direct and indirect compensation we receive by such clients. Generally, these
disclosures are contained in this Form ADV Part 2A, the client Agreement and/or in separate ERISA
disclosure documents and are designed to enable the ERISA plan’s fiduciary to: (1) determine the
reasonableness of all compensation received by Spectrum; (2) identify any potential conflicts of interests;
and (3) satisfy reporting and disclosure requirements to plan participants.