KUTZ and Company Inc

FEES AND COMPENSATION
As noted in the previous section, fees for comprehensive financial planning services are charged
at our normal hourly rate of $275 per hour (negotiable). Fees are billed only after service is
performed. We generally do not bill any fees in advance.

Fees for asset management services are billed based on a percentage of average monthly assets
under management. Rates range between .67% and 1.00% per annum (negotiable). Fees are
charged at the end of each quarter for the preceding quarter based on the average of each
component month’s account value. Again, no fees are billed in advance.
Asset management fees are generally deducted directly from the client’s Charles Schwab account
though the client may make arrangements to have the fees billed to them directly. Either method
is acceptable.
Either the firm or you may terminate the service agreement at any time, typically in writing. For
investment supervisory clients, our firm will not be responsible for future allocations,
transactional services or investment advice upon termination of the agreement. As fees are not
billed in advance any prorated fee owed to the firm for the portion of the quarter that the
agreement was in effect will be billed upon termination.
Asset management clients bear the additional costs of any mutual fund and exchange traded fund
fees. Although we utilize no load funds, clients should be aware that all mutual funds and
exchange traded funds have fees that are paid directly to the mutual fund company, to pay for
management and marketing. Although these fees simply are netted against the fund’s
performance, they are a true cost to the buyer. The client will also bear the cost of brokerage fees
and transaction costs to buy and sell securities. In addition, clients may occasionally incur
redemption fees upon liquidating shares of certain mutual funds, although a conscious effort is
made to avoid such fees. A summary of these fees is as follows:
TRADING COMMISSIONS – EQUITIES (MARKET AND LIMIT ORDERS):
Online – U.S. Exchange-Listed Stocks & ETFs $0.00
Online – OTC Equities $6.95
Offline – Broker-Assisted $25

TRADING COMMISSIONS – MUTUAL FUNDS:
No-Transaction-Fee (NTF) Funds No commission
Transaction-Fee Funds
Online $31
Offline — Broker Assisted $45
Omnibus Pricing (Transaction-Fee Funds
and NTF) $25 Omnibus pricing
Load Funds See prospectus Fee imposed by fund company.

MISCELLANEOUS TRADING FEES:
Trade Away $25 Fee applies to trade executions in, or allocated to, client accounts..
Step Outs $25 Fee applies to trade executions in, or allocated to, client accounts.
Prime Brokerage $25 Fee applies to trade executions in, or allocated to, client accounts.
Delivery vs Payment (DVP)†† $0.03 per share Only applies for Delivery vs Payment accounts.

SHORT-TERM REDEMPTION FEE – MUTUAL FUNDS:
Shares held 90 days or less $49.99
Assessed on no-transaction-fee (NTF) funds (except ProFunds and Rydex) and
load-waived A shares held 90 days or less. This fee is in addition to any fund-
imposed fees in accordance with that fund’s prospectus.

FIXED-INCOME COMMISSION SCHEDULE:
Treasuries at Auction No Charge
UITs $35 Flat fee regardless of size.
Note: Transactions on most fixed income securities not mentioned above are done on a principal
basis. There will be a markup
(on a purchase) or a markdown (on a sale) on each transaction, which will be included in the
price and yield quoted on the bond.
The client should be aware that aside from the hourly and management fees described above,
Kutz and Company Inc. receives NO commission or transactional based fees based on the sales
of financial products nor does the firm receive any part of any 12 b 1 fees levied by any
recommended funds.
RETIREMENT ROLLOVER CONFLICTS OF INTEREST
When we provide investment advice to you regarding your retirement plan account or individual
retirement account, we are fiduciaries 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 we make money creates some conflicts of interest with your
interests, so we operate under a special rule that requires us to act in your best interest and not
put our interests ahead of yours.

           PERFORMANCE-BASED FEES AND SIDE-BY-SIDE
                       MANAGEMENT
Our fees are not based upon a share of capital gains or capital appreciation of any portion of
managed funds (“performance – based fees”). We do not use a performance-based fee structure
because of the conflict of interest this type of fee structure poses.
Our fees are not based on side-by-side management, which refers to a firm simultaneously
managing accounts that do pay performance-based fees and those that do not also because of the
conflict of interest this type of fee structure poses.

TYPES OF CLIENTS
Our planning and asset management services are provided primarily to individuals of the general
public, professional persons and individual executives, trusts and high net worth individuals. In

general, the vast majority of our planning clients come from our existing tax and accounting
practice and are individuals with whom we have longstanding relationships.
Our ability to provide the best service possible depends on access to information. Accordingly,
our clients are expected to provide us with an adequate level of information and supporting
documentation throughout the term of the arrangement. This helps us determine the
appropriateness of our financial planning or investment strategy for the client or account.
We reserve the right to waive or reduce certain fees based on individual circumstances or pre-
existing relationships. We also reserve the right to decline services to any prospective client for
any non-discriminatory reason. Our minimum account size is generally $100,000 but lower
amounts may be acceptable upon mutual agreement between our firm and the client.

METHOD OF ANALYSIS, INVESTMENT STRATEGIES AND RISK
                      OF LOSS
While we do not evaluate individual securities, we do keep abreast of general business
conditions and changes in the law, taxation and various investment and insurance products. To
this end, we review general business publications, tax services, technical journals and other
materials relevant to the services provided. We also utilize several mutual fund and exchange
traded fund screening and ranking services.
Selection of an investment strategy is based on the unique resources, objectives and risk
tolerance of each individual client. We do not employ a particular method of analysis or
investment strategy. Rather, investment strategy is developed on a case-by-case basis. We work
with each customer to determine his/her risk profile and investment needs and objectives. With
that information, we recommend the particular investments that best match the customer’s
requirements.
Although we generally utilize well diversified mutual funds and exchange traded funds the client
should be aware that each and every investment is subject to risk including the risk of loss of
principal invested. Any investment strategy involves a risk that the customer may lose part of
his/her investment, and that loss could be substantial. Certain categories of investments have
historically been viewed as having less risk than others, but recent history has shown that many
of those asset classes lost substantial value as well. For example, so called “blue chip” stocks,
bonds and bond funds, and similar investments that had been viewed as relatively conservative
proved not to be so. “Guaranteed” investments, like fixed annuities, are deemed “safe,” but in
reality, are only as safe as the financial strength of the insurance company issuing the policy.
Even U.S. Treasuries may go up and down in market value and are only “guaranteed” against
loss if the customer is willing and able to hold the instrument until maturity. Clients should
always be aware that investment returns on accounts will vary and there is no guarantee of
positive results or protection against loss.

Clients should carefully read a copy of the current prospectus for each selected security which
will be provided by the custodian Charles Schwab.