Latko Wealth Management Ltd

Item 5 – Fees and Compensation

Asset Management

Investment Advisor representatives are restricted to providing services and charging fees based
in accordance with the descriptions detailed in this document and the account agreement.
However, the exact service and fees charged to a particular client are dependent upon the
representative that is working with the client. Advisors are instructed to consider the individual
needs of each client when recommending an advisory platform. Investment strategies and
recommendations are tailored to the individual needs of each client.

Latko Wealth Management, Ltd. provides investment management services for an annual fee
based upon a percentage of the market value of the aggregate client assets held under
management or commonly termed as household accounts. The annual fee typically varies
between .50% to 2.0% per client. Fees are billed in advance based on the assets under
management as of the last business day of the previous quarter.

                [Quarter End Value x Advisory Fee] / 360 x 90 = Advance Billing

              Total Assets Under Management                       Maximum Annual Fee

                      $0 - $5,000,000+                                  0.5% - 2.0%

Latko Wealth Management, Ltd. will negotiate fees based upon individual account criteria such
as anticipated future assets, client’s unique circumstances and complexities, and scope of
services performed. Typically accounts with a higher investment amount will be charges a lower
fee. Our fees may be higher or lower than fees charged by other financial professionals offering
similar services.

Latko Wealth Management, Ltd. will offer fees below or above the maximum annual fee for
friends and family members.

Financial Planning - Fixed or Hourly Fee

Financial Planning fees are generally fixed based on an estimated number of hours or they are
available on an hourly basis. The fee and payment schedule is negotiated per client. Although,
fixed fee planning generally requires 50% up front and the balance upon completion whereas
fees based on an hourly basis are generally due as hours are accrued. The identical types of

planning are offered on a fixed fee basis or an hourly basis to all clients. Fixed fee billing verses
hourly billing is dependent on an individual client’s billing preference after a review of what is
likely to be in their best interest based on cost effectiveness.

Before commencing financial planning services, we will provide an estimate of the approximate
hours needed to complete the requested financial planning services. The hours estimated for a
financial plan vary by each client’s individual financial situation and focus of the plan. If we
anticipate exceeding the estimated number of hours required, we will contact you to receive
authorization to provide additional services.

Our fixed fee ranges from $200 to $5,000 based on the number of expected hours multiplied by
the hourly fee rate but may exceed $5,000 as circumstances warrant with approval by the Chief
Compliance Officer. The hourly billing rate generally ranges from $200 to $400 an hour based
on the specific complexities and scope, experience and expertise required as well as the
sophistication and bargaining power of the client.

Clients are not “fit” into a particular service level but a plan is designed to be specific to each
individual client and their unique circumstances. The following criteria will be considered as
appropriate when determining the number of hours expected to create a client specific financial
plan.

   •   Total Income                     •   Education Costs                  •   Budget
   •   Net Worth                        •   Timeframe                        •   Expected number of
   •   Marital Status                   •   Risk Tolerance                       Meetings
   •   Tax Bracket                      •   Objectives                       •   Phone Conferences
   •   Assets under                     •   Account Types and                •   Volume of Documents
       Management                           Holdings                         •   Number of Accounts
   •   Children                         •   Investment Experience            •   Type of Holdings

In the event that a client terminates the services they will be entitled to a refund of any unearned
fees by subtracting the earned fees from the amount paid in advance. Latko Wealth
Management, Ltd. does not require or solicit prepayment of more than $500 in fees per client,
six months or more in advance. Payment for financial planning it to: Latko Wealth
Management, Ltd.

Hourly Consulting

The hourly fee will be based on the specific complexities and scope, experience and expertise
required as well as the sophistication and bargaining power of the client. The negotiated hourly
fee for consulting services will generally range between $200 and $400 per hour but may exceed
$400 as circumstances warrant due to client specific complexities or the degree of expertise
required.

Payment for hourly consulting is to: Latko Wealth Management, Ltd.
Brokerage Commissions

Clients can engage certain representatives of the firm, in their individual capacities as registered
representatives of LPL Financial in order to purchase investment products in a brokerage
account established through LPL Financial. LPL Financial will charge brokerage commissions
to effect securities transactions, a portion of which commissions LPL Financial shall pay to the
firm’s representatives, as applicable. The brokerage commissions charged by LPL Financial may
be higher or lower than those charged by other broker/dealers.

LPL Financial as a broker/dealer charges brokerage commissions and transaction fees for
effecting certain securities transactions (i.e., transaction fees are charged for certain no-load
mutual funds, commissions are charged for individual equity and debt securities transactions).
...

Item 7 – Types of Clients

Latko Wealth Management generally provides investment advisory services to a wide variety of
clients including, but not limited to, individuals including those with high net worth and

individuals who are considered a “qualified client” under Rule 205-3 of the Investment Advisors
Act of 1940, or is a “qualified purchaser,” pension and profit sharing plans (other than plan
participants), trusts, estates, 401(k) sponsor plans and Individual Retirement Accounts (IRA,
SEP, ROTH IRA), charitable organizations, corporations and other business entities, including
sole proprietorships. However, the advisory services offered by Latko Wealth Management are
also available to banks and thrift institutions, estates, charitable organizations as well as state
and municipal government entities as the opportunity may arise.