Markowski Brothers Holding Corporation

Item 5 – Fees and Compensation

Fees are calculated as a percentage of assets under management. Accounts are charged in advance for a
three-month period based on the account balances. Accounts are debited for the appropriate fee. If you
have multiple accounts, you may request the company bill all management fees to one account. For
initial periods, the beginning balance and date range is described by the management contract. When
an account is first placed under management, billing begins on the later of, first day the account is
funded or the first day the account is approved by the company. In addition to our standard fees, you
may incur other charges from other parties for clearing, custody, independent investment management,
advisory services or other services that may be provided on an hourly basis. If outside consultants are
required for additional analysis and advice, the resulting cost will increase the amounts disclosed in the
below fee schedule and will be payable directly to those outside consultants.

Mutual fund managers and annuity issuers charge certain fees for their services and products. Those
fees are in addition to the management fees paid to the Adviser and are separate and distinct from the
management fees charged by the Adviser. These fees and expenses are described in the prospectuses
for each mutual fund, annuity, or underlying annuity fund. These fees include front-end or back-end
loads (initial or deferred sales charges), management fees, other fund expenses and distribution fees
(“12b-1 fees”). The type of mutual fund share class used in client portfolios will determine if there is an
initial or deferred sales charge which a client will pay, as well as the existence and amount of other fund
or product expenses to be paid by the client. These charges, fees and expenses will impact the cost to
the client of purchasing, holding, and/or selling the mutual fund or annuity product. Many mutual fund
share classes pay 12b-1 fees or trailing commissions to our affiliated Broker/Dealer, Westminster
Financial Securities, Inc., which increases the cost to the client of holding the mutual fund. This fee is
generally .25% annually but varies from fund to fund. In many instances, a portion of these trailing
commissions are then paid to the investment adviser representative who is also a registered
representative of the Broker/Dealer. In many instances, lower-cost mutual fund share classes are
available. Accordingly, the client should review both the fees charged by the funds and the applicable
program fee charged by the Adviser to fully understand the total amount of fees to be paid by the client
and to thereby evaluate the Advisory services being provided.

The advisory fee is determined based on the fair market value of the client’s account on the last day of
each closing calendar quarter multiplied by one-fourth of the corresponding annual percentage rate.

                                 Guidelines for Estimating Fee to Clients

Principal Amount                         Annual Fee
$0 - $250,000                            1.50%
$250,001 - $3,000,000                    1.25%
$3,000,001 - $10,000,000                 1.00%
Above $10,000,000                        Negotiated

Fees may be higher or lower than those shown due to special client situations, other services performed
or other extraordinary circumstances and may be negotiable. The client is always informed in writing of
the fee structure in place on their account.

The investment advisory agreement is terminable by either party at any time upon written notice to the
other party. Prepaid fees will be pro-rated using the termination date specified in the notice of
termination.

Assets deposited by a client into their management account between billing cycles will not result in
additional management fees being billed to the client. For assets withdrawn by a client, Markowski
Investments does not make partial refunds of their management fees. Just as with deposits, withdrawals
may require modifications and adjustments to be made in the account to correct the client’s allocation
of assets.

Item 7 – Types of Clients

Markowski Investments has registered financial advisors focused on assisting individuals and their
families, trusts, estates, fiduciaries, charitable organizations, small businesses, and retirement plans
(hereinafter referred to as the “client”) manage their wealth and comprehensive financial plans. Our
central duty is to provide investment counsel and guidance which stresses fiscal responsibility and
disciplined asset allocation strategies to meet client needs, goals, and risk tolerance.