Kubence LLC

Item 5 – Fees and Compensation

Fees are calculated on an AUM basis and will be based on the services selected and described in the
Agreement. While Advisors may choose to add Kubence’s fees to their own client fees, if authorized in
the Advisor’s agreement with its own clients, the fees described here for sub-advisory agreements are
due from the Advisor to Kubence and not from Advisor’s End Clients to Kubence. Our maximum fee is

                                               Kubence LLC
                                             Form ADV Part 2A

100 basis points to the Advisor. Clients may be able to obtain similar services from other advisors for
lower total fees than those that will apply if the Advisor’s fees are added to Kubence’s. In addition, lower
fees for comparable services may be available from other sources.

Fees for Discretionary Separate Account Management
Maximum Fee Schedule:

Our fees are negotiable and generally range between 50 and 100 basis points per year on all assets
under our management. 100 basis points is the maximum we will charge any Client or Advisor, though
we may negotiate fees lower than 50 basis points.

Fee Calculation – Timing & Methodology

Asset-based fees are calculated quarterly in arrears and as described in the Agreement. Fees are based
on the quarter-end market value of assets under our management. In calculating the value of Accounts
using our box spread strategies, we calculate the assets under management as the net cash value
generated from the selling of box spread options. For example, if a combination of box spread option
transactions result in a net cash flow of $50,000, we use $50,000 for the purpose of calculating
management fees. In all cases, the values used are those reported to us by custodians or portfolio
management systems and are not independently determined by Kubence.

The specific fee billing arrangement will be described in the Agreement. Advisors’ End Clients should
refer to their Advisor’s disclosure brochure and the fee schedule in their investment management
agreement with their Advisor for a description of their Advisor’s fees for specific accounts. Kubence’s
services may be terminated with 30 days’ notice. Since we charge in arrears, in the event of termination,
we will issue a pro-rata invoice from the first day of the quarter through the effective date of
termination.

For sub-advisory services, we invoice the Advisor and fees are due to us within 10 days of quarter-end.

For direct advisory services, the Agreement permits us to deduct our advisory fees directly from client
accounts.

Other Fees
Certain fees are not included in our advisory fees. The most significant of these is the fee charged by an
Advisor to their End Clients. In addition, all clients will incur brokerage, transaction, and custodial fees.
These fees can vary depending on the custodian or broker used and will be disclosed separately to the
Client or End Client in the custodian’s clearing and custodial paperwork.

For sub-advisory relationships, it is the Advisor’s responsibility to clearly communicate to the End Client
all fees charged for servicing such client’s account.

                                              Kubence LLC
                                            Form ADV Part 2A

See Item 12 for additional information about our brokerage practices. See the Advisor’s Brochure for
more information on that Advisor’s fees and their custodial recommendations.

Our fees do not include option trading costs for box spreads, which are paid to the custodian or
executing broker. Similarly, our fees do not include internal expenses associated with structured notes.
Structured note fees compensate the investment banks sponsoring the notes and are not shared with
Kubence or Kubence’s advisory representatives. These fees can be substantial and will reduce returns
over time. Additional information about a given structured note is available in the note’s information
statement, prospectus, or prospectus supplement. Advisors’ End Clients will effectively be charged
three fees on the same assets: our advisory fees, the management fees charged by the Advisor, and the
expenses and fees built into the structured note.

Advisors’ End Clients may also be charged for specific account services, such as ACAT transfers,
electronic fund and wire transfer charges, and for other optional services elected by clients. Accounts
may be subject to transaction-based ticket charges assessed by the custodian for the purchase of certain
mutual funds. Similarly, our fees do not cover certain non-brokerage-related fees such as custodian fees
or retirement plan account fees.

Commissions & Transaction-Based Compensation
Neither Kubence nor our advisory representatives receive any commissions or other transaction-based
compensation, including asset-based sales charges or service fees from legacy mutual funds, in
exchange for our advisory services. Some of Kubence’s advisory representatives are, however,
separately registered as representatives of an unaffiliated broker-dealer and, in this capacity, they will
individually earn commissions, though these commissions are not shared with Kubence. Kubence does
not use this broker-dealer relationship to execute transactions for advisory clients and does not permit
the firm’s advisory representatives to earn commissions from Kubence clients in connection with
investment advisory services. See Item 10, Other Financial Industry Activities and Affiliations, as well as
the advisory representative’s ADV 2B Brochure Supplements, for more information on their dual
registration, other business activities, and related conflicts of interest.

Valuation for Fee Billing Purposes
The value of the Account for billing purposes will be the asset values reported by the custodian, or values
reported by our portfolio management system. See additional details above. In the event the custodian
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Item 7 - Types of Clients

Our clients are other registered investment advisors, as well as individual clients, trusts, high-net
worth clients, and some corporate entities.

We do not have a minimum account size.