Milborn Advisors Ltd

Item 5: Fees and Compensation

A. Fee Schedule

Portfolio Management Fees

        Total Assets Under Management            Annual Fees
        All Assets                               2.00%

The advisory fee is calculated using the value of the assets in the Account on the last
business day of the prior billing period.

The fee is negotiable final fee schedule will be memorialized in the client’s advisory
agreement. Clients may terminate the agreement without penalty for a full refund of MA's
fees within five business days of signing the Investment Advisory Contract. Thereafter,
clients may terminate the Investment Advisory Contract generally with 30 days' written
notice.

Financial Planning Fees

Fixed Fees

The fixed rate for creating client financial plans is between $1,000 and $10,000.

Clients may terminate the agreement without penalty, for full refund of MA’s fees, within
five business days of signing the Financial Planning Agreement. Thereafter, clients may
terminate the Financial Planning Agreement generally upon written notice.

Pension Consulting Services Fees

The rate for pension consulting services is up to 2.00% of the plan assets for which MA is
providing such consulting services. These fees are negotiable.

B. Payment of Fees

Payment of Portfolio Management Fees

Portfolio management fees are withdrawn directly from the client’s accounts with client’s
written authorization or will be invoiced and billed directly to the client, payable by check,
on a quarterly basis. Fees are paid in advance.

Payment of Financial Planning Fees

Financial planning fees are paid via check.

Fixed financial planning fees are paid 100% in advance, the presentation of the plan is
provided within six months of payment. Fixed financial planning fees paid 50% in
advance, but never more than six months in advance, with remainder due
upon presentation of the plan.

Payment of Pension Consulting Services Fees

Pension consulting fees are withdrawn directly from the client’s accounts with client’s
written authorization. Fees are paid quarterly in advance.

C. Client Responsibility For Third Party Fees

Clients are responsible for the payment of all third party fees (i.e., custodian fees,
commissions, brokerage fees, mutual fund fees, transaction fees, etc.). Those fees are
separate and distinct from the fees and expenses charged by MA. Please see Item 12 of
this brochure regarding broker-dealer/custodian.

D. Prepayment of Fees

MA collects fees in advance. Refunds for fees paid in advance but not yet earned will be
refunded on a prorated basis and returned within fourteen days to the client via check.

For all asset-based fees paid in advance, the fee refunded will be equal to the balance of
the fees collected in advance minus the daily rate* times the number of days elapsed in
the billing period up to and including the day of termination. (*The daily rate is calculated
by dividing the annual asset-based fee rate by 365.)

Fixed fees that are collected in advance will be refunded based on the prorated amount of
work completed at the point of termination.

E. Outside Compensation For the Sale of Securities to Clients

Mark John Melby Hoffman and Drew Ashland’s outside business activities (see Item 10
below) are licensed to accept compensation for the sale of investment products to MA
clients.

       •   This presents a conflict of interest and gives the supervised person an incentive to
           recommend products based on the compensation received rather than on the client’s
           needs. When recommending the sale of securities or investment products for which
           the supervised persons receives compensation, MA will document the conflict of
           interest in the client file and inform the client of the conflict of interest.

       •   Clients always have the right to decide whether to purchase MA -recommended
           products and, if purchasing, have the right to purchase those products through other
           brokers or agents that are not affiliated with MA.

       •   Commissions are not MA’s primary source of compensation for advisory services.

       •   Advisory fees that are charged to clients are not reduced to offset the commissions or
           markups on securities or investment products recommended to clients.

Item 7: Types of Clients

MA generally provides advisory services to the following types of clients:

       ❖      Individuals
       ❖      High-Net-Worth Individuals
       ❖      Pension and Profit-Sharing Plans

There is no account minimum for any of MA’s services.