M1 Capital Management

Item 5.          Fees and Compensation

Investment Management Fees
M1’s Investment Management fees are calculated as a percentage of assets under management
and range from .10% to 2.0% for all investment management strategies including Tactical Asset
Allocation, Tactical Dividend Income, Fixed Income, and the CMO strategy as well as general
investment management. We will negotiate our fees based upon the size of a client’s portfolio
and the strategies requested by the client. Fees are negotiated by individual representatives of
M1. Particular fees paid by the client will be outlined in the advisory agreement.

                  M1 Capital Management, 200 E Big Beaver Rd. Ste 132 Troy, MI 48083

Fees are charged quarterly in advance based on the value of the account on the last day of the
previous quarter. No fee adjustments will be made for changes in the value of your portfolio,
including the depreciation or appreciation of assets in your account during the quarter. If you
terminate your investment management contract with us prior to the end of the quarter, we will
return the unearned portion of your quarterly investment management fee, which will be
calculated on a pro-rated basis. For example, if you terminate your investment management
contract with us after two months of a three-month quarter, we will return to you one-third of
your investment management fee for that quarter.

Generally, our fees are automatically deducted from our clients’ assets and our clients are not
given a choice of method of payment. However, some of our clients request that we bill them
instead of automatically deducting our fees from their accounts and we generally will agree to
do so.

Our clients whose assets are invested in ETFs, mutual funds, CMOs and REITs pay both a direct
management fee to us and an indirect management fee through such funds and mutual funds to
the funds’ advisors. We recommend ETFs, CMOs and REITs. On occasion, we do recommend
mutual funds to achieve specific investment objectives for our clients. In such cases, we purchase
mutual funds for our clients’ portfolios. We make efforts to purchase investor class shares and
generally use only no-load funds. All our clients also pay brokerage fees, which include brokerage
commissions, wire transfer fees and fees for other services a client may request. Clients who
choose custodians other than their brokerage firms will pay separate custodian fees. Clients that
are trusts or ERISA accounts may also pay trustee and other service fees.

Our firm generally does not accept compensation for the sale of securities or other investment
products, including asset-based sales charges or service fees from the sale of mutual funds to
advisory clients. However, several of our employees are also licensed insurance products
salespersons in their personal capacity. From time to time, these employees may recommend
such insurance products to Clients. However, Clients are under no obligation to purchase the
insurance products through the M1 Capital employee and may find similar products elsewhere.

Financial Planning Fees
Fees for our financial planning services may be charged as a one-time flat fee for the financial
plan or on an ongoing basis for continuous planning advice. Clients may combine both financial
planning services and investment management services or use M1 Capital solely for financial
planning services or solely for investment management services.

Our most common one-time fee for a financial plan is $1500, however in certain circumstances
for a very limited plan we may charge as little as $150. Depending on the type of plan requested
and the scope of the work involved in plan preparation, we may charge as much as $10,000 for a
financial plan. When charging a one-time flat fee, we require that a deposit be paid in advance
and the remainder of the fee is due upon completion of the service. We will negotiate our
financial planning fees based on the complexity of a client’s portfolio and the services requested.
Clients who want continuous financial planning services but do not require investment
management will generally be charged a yearly flat fee that will be billed quarterly in advance.

                M1 Capital Management, 200 E Big Beaver Rd. Ste 132 Troy, MI 48083

The total amount for the yearly fee will be divided by four and charged at the beginning of each
quarter for services to be provided in that quarter. Due to the nature of the work we perform for
an ongoing financial plan, we are not able to prorate our flat fee for continuous financial planning
services.

Combined Continuous Financial Planning and Investment Management Fees
For clients who want to combine continuous financial planning with investment management
services, the financial planning fees will range from .25% to 2.0% for the combined financial
planning and investment management services and will be charged quarterly in advance at the
same time as fee for investment management.

No fee adjustments will be made for changes in the value of your portfolio, including the
depreciation or appreciation of assets in your account during the quarter. If you terminate your
investment management contract with us prior to the end of the quarter, we will return the
unused portion of your quarterly investment management fee, which will be calculated on a pro-
rated basis. For example, if you terminate your investment management contract with us after
two months of a three-month quarter, we will return to you one-third of your combined
investment management and financial planning fee for that quarter.

Generally, our fees are automatically deducted from our clients’ assets and our clients are not
given a choice on the method of payment. However, some of our clients request that we bill them
instead of automatically deducting our fees from their accounts and we generally will agree to
do so.

Item 7.        Types of Clients

We provide our investment advisory services primarily to individuals, most of whom are high net
worth individuals. We also provide investment advisory services to pension, profit-sharing plans,
charities, and businesses.

Our stated minimum relationship size for generalized investment supervisory services and
management of investment advisory accounts is $100,000. On an individualized basis and under
special circumstances, we may negotiate our minimum account sizes and fees.

                M1 Capital Management, 200 E Big Beaver Rd. Ste 132 Troy, MI 48083