Members Advisory Group LLC

Item 5: Fees and Compensation

Compensation - Wealth Management Services
Our fee for portfolio management services is based on a percentage of your assets we manage
and is set forth in the following fee schedule:

                           Assets Under Management Annual Fee
                                 $0 to $100,000      1.00%
                             $100,001 to $999,999    0.85%
                                  $1,000,000+        0.75%

Our annual fee for the wealth management services is billed quarterly, in advance, and is based
on the market value of your total managed assets and is applied to the entire account balance
on the last day of the preceding quarter. Our fees will be assessed pro rata in the event the
portfolio management agreement is executed at any time other than the first day of a billing
period. At our sole discretion, the fee may be negotiable.

At our discretion, we may combine the account values of family members living in the same
household to determine the applicable advisory fee. For example, we may combine account
values for you and your minor children, joint accounts with your spouse, and other types of
related accounts. Combining account values may increase the asset total, which may result in
paying a reduced advisory fee based on the available breakpoints in our fee schedule stated
above.

We will deduct our fee directly from your account through the qualified custodian holding your
funds and securities. We will deduct our advisory fee only when you have given our Firm
written authorization permitting the fees to be paid directly from your account.

You may terminate the wealth management agreement upon written notice to our Firm. You
will incur a pro rata charge for services rendered prior to the termination of the 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.

Compensation - Insurance
Persons providing investment advice on behalf of our Firm are licensed as independent
insurance agents. You may work with your Investment Advisor Representative in their separate
capacity as an insurance agent. When acting in their separate capacity as an insurance agent,
the Investment Advisor Representative may sell, for commissions, life insurance, annuities, and
other insurance products to you. As such, your Investment Advisor Representative, in their
separate capacity as an insurance agent, may suggest that you implement recommendations by
purchasing life insurance, annuities, or our other insurance products. This receipt of
commissions creates an incentive for the representative to recommend those products for

which your Investment Advisor Representative will receive a commission in their separate
capacity as an insurance agent. Consequently, the advice rendered to you could be biased. You
are under no obligation to implement any insurance or annuity transaction through your
Investment Advisor Representative.

Cash Balances
Some of your assets may be held as cash and remain uninvested. Holding a portion of your
assets in cash and cash alternatives, i.e., money market fund shares, may be based on your
desire to have an allocation to cash as an asset class, to support a phased market entrance
strategy, to facilitate transaction execution, to have available funds for withdrawal needs or to
pay fees or to provide for asset protection during periods of volatile market conditions. Your
cash and cash equivalents will be subject to our investment advisory fees unless otherwise
agreed upon. You may experience negative performance on the cash portion of your portfolio if
the investment advisory fees charged are higher than the returns you receive from your cash.

Retirement Plan Rollover Recommendations
As part of our investment advisory services to our clients, we may recommend that clients roll
assets from their employer’s retirement plan, such as a 401(k), 457, or ERISA 403(b) account
(collectively, a “Plan Account”), to an individual retirement account, such as a SIMPLE IRA, SEP
IRA, Traditional IRA, or Roth IRA (collectively, an “IRA Account”) that we will advise on the
client’s behalf. We may also recommend rollovers from IRA Accounts to Plan Accounts, from
Plan Accounts to Plan Accounts, and from IRA Accounts to IRA Accounts.

If the client elects to roll the assets to an IRA that is subject to our advisement, we will charge
the client an asset-based fee as set forth in the advisory agreement the client executed with our
firm. This creates a conflict of interest because it creates a financial incentive for our firm to
recommend the rollover to the client (i.e., receipt of additional fee-based compensation).
Clients are under no obligation, contractually or otherwise, to complete the rollover. Moreover,
if clients do complete the rollover, clients are under no obligation to have the assets in an IRA
advised on by our firm. Due to the foregoing conflict of interest, when we make rollover
recommendations, we operate under a special rule that requires us to act in our clients’ best
interests and not put our interests ahead of our clients’.

Under this special rule’s provisions, we must:

   •   meet a professional standard of care when making investment recommendations (give
       prudent advice);
   •   never put our financial interests ahead of our clients’ when making recommendations
       (give loyal advice);
   •   avoid misleading statements about conflicts of interest, fees, and investments;
   •   follow policies and procedures designed to ensure that we give advice that is in our
       clients’ best interests;
   •   charge no more than a reasonable fee for our services; and

   •    give clients basic information about conflicts of interest.

Many employers permit former employees to keep their retirement assets in their company
...

Types of Clients
We offer investment advisory services to individuals and high net worth individuals.

Account Minimums
In general, we do not require a minimum dollar amount to open and maintain an advisory
account; however, we have the right to terminate your account if it falls below a minimum size
which, in our sole opinion, is too small to manage effectively.

We may also combine account values for you and your minor children, joint accounts with your
spouse, and other types of related accounts to meet the stated minimum.