Measured Risk Portfolios Inc

Item 5: Fees and Compensation

MRPI charges fees based on the particular type(s) of advisory service to be provided. The specific fees
charged by MRPI for such services will be set forth in each client’s written Agreement. Although the
Firm believes its fees are competitive, clients should be aware that lower fees for comparable services
may be available from other sources.

   A. Advisory Fees

           1. Investment/Portfolio Management Fees
Typically for its investment management services, MRPI will receive an annual investment management
fee, assessed quarterly, that is based upon the value of a client’s asset under management (including

cash and cash equivalents). Fees are negotiable and billing methods will vary depending upon the type
of strategy employed and underlying securities held within a particular strategy in accordance with the
following:

             a. Fees for MRP Strategies, Sector 4, and Long-Shot Strategy
Fees for MRP Strategies, Sector 4, and Long-Shot Strategy (as defined in Sections 4 and 8) are
outlined in the table below and may be negotiated, at the sole discretion of MRPI, based on client
objectives, the strategy employed, and complexity of management.

                               Quarter       Annual    Maximum     Total     Effective
                               Balance:      Fee       Tier Fee    Fee       Fee
                     First     $250,000      2.00%     $5,000      $5,000    2.00%
                     Next      $250,000      1.85%     $4,625      $9,625    1.93%
                     Next      $250,000      1.60%     $4,000      $13,625   1.82%
                     Next      $250,000      1.35%     $3,375      $17,000   1.70%
                     Next      $1,000,000    1.20%     $12,000     $29,000   1.45%
                     Next       Unlimited    1.10%     N/A         N/A       N/A
These investment management fees are assessed quarterly, in advance, based upon a percentage of the
client’s assets under management as of the close of business on the last business day of the preceding
calendar quarter. Assets under management includes cash holdings in client accounts but is not
inclusive of accrued interest or dividends.

Our minimum account size is $250,000 and may be waived at our sole discretion.

For purposes of valuing a client’s assets under management (“AUM”) for fee calculation purposes,
MRPI will aggregate the client’s AUM values of a household, which includes husband, wife, domestic
partner, and minor children. We also will include managed accounts of adult children, if agreed to by
both parties. This aggregation can lower the applicable fee assessed by MRPI based on our tiered rate
fee schedule shown above.
Upon receiving written authorization from the client, contained in the Agreement signed by the client,
the Firm’s investment management fees will be invoiced for payment or deducted from the client’s
account by the client’s custodian upon receipt of a billing statement from MRPI and paid directly to
MRPI following the end of each applicable period. The Firm’s fees will be prorated for each addition
or withdrawal to account assets made during the applicable calendar quarter (with the exception of de
minims contributions of less than 5% of account value). Accounts initiated or terminated during a
calendar quarter will be charged a prorated fee based on the number of days the account was open
during the calendar quarter.

You may terminate the investment/portfolio management agreement by providing written notice to
our firm. You will incur a pro rata charge for services rendered prior to the termination of the
investment/portfolio management agreement, which means you will incur advisory fees only in
proportion to the number of days in the quarter for which you are a client. If you have pre-paid
advisory fees that we have not yet earned, you will receive a prorated refund of those fees.

The custodian delivers an account statement to the client at least quarterly, but generally monthly,
showing all disbursements, including advisory fees, deducted from the account. These statements are
delivered by electronic or paper methods based upon the client’s specification. Clients who elect paper
statements may be charged more by the custodian for transaction charges. The client is encouraged to
review all account statements for accuracy.

            a. Fees for Mutual Fund Strategy
Fees for MRPI’s Mutual Fund Strategy (“MFS”), as defined in Sections 4 above and 8 below, will be
assessed an annual fee of 1.00% of a client’s assets under management invested in MFS that can be
discounted to 0.20% at MRPI’s sole discretion depending on both the size of the account and other
factors. This is available as a flat fee or tiered fee. Note that the existence of two different fee
structures creates a conflict of interest as we have an incentive to place client accounts into the fee
structure that result in greater fees paid to MRPI. We respond to this conflict through disclosure to
clients and our policies and procedures, which require us to act in a client’s best interest.

MRPI typically includes mutual funds from various sponsors, who also manage the funds. In such
instances, MRPI’s fee attributable to client assets invested in a given fund will be calculated by the fund
for each quarterly period ending the last business day of February, May, August and November. MRPI’s
fees shall be calculated by MFS based on (i) the average daily net asset value of client assets invested in
fund shares during the quarter; (ii) the number of days in the quarter; and (iii) the applicable fee rate
divided by the number of days in the year. MRPI’s fees shall be paid directly by the fund to us within
thirty (30) days following the end of the quarter for which such fees are payable.

            a. Sub-advisory Arrangement and Fees
Sub-advisory agreements are evidenced in writing between the referring RIA and the Firm. MRPI
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Item 7: Types of Clients

MRPI provides portfolio management services to individuals, high net worth individuals, corporate
pension and profit-sharing plans, foundations, trusts, and U.S. corporations, as well as other investment
advisers.

MRPI normally requires a minimum of $250,000 to establish a new advisory account; however, the
minimum has been in the past and may be in the future, reduced or waived entirely at the sole
discretion of the Firm.