Nautilus Advisors LLC

ITEM 5. FEES AND COMPENSATION

We are required to describe our brokerage, custody, fees and fund expenses so you will know how
much you are charged and by whom for our advisory services provided to you. Our fees are
generally negotiable.

How We Are Compensated for Our Advisory Services

Comprehensive Portfolio Management:

Maximum Fee Schedule:

          Assets Under Management                      Maximum Annual Advisory
                                                       Fee
          Up to $500,000                               1.50%
          $500,001 to $1,000,000                       1.25%
          $1,000,001 to $3,000,000                     1.00%
          $3,000,001 to $10,000,000                    0.90%
          Over $10,000,000                             By Negotiation

Our firm’s fees are billed on a pro-rata annualized basis quarterly in advance based on the value of
your account(s) on the last day of the previous quarter. Clients with annuities in advisory accounts
will be charged quarterly in advance or arrears depending on the provider’s billing process. The
specific billing arrangement will be disclosed in the signed client agreement. Adjustments will be
made for deposits and withdrawals during the quarter. Our firm bills on cash and cash equivalents
unless indicated otherwise in writing. Fees will generally be automatically deducted from your
managed account(s)*. As part of this process, you understand and acknowledge the following:

   a) Your independent custodian sends statements at least quarterly to you showing all
      disbursements for your account, including the amount of the advisory fees paid to us.
   b) You provide authorization permitting us to be directly paid by these terms.
   c) If we send a copy of our invoice to you, we send a copy of our invoice to the independent
      custodian at the same time we send the invoice to you.
   d) If we send a copy of our invoice to you, our invoice will include a disclosure that urges you
      to compare the information provided in our statements with those from the qualified
      custodian.

*In rare cases, we will agree to directly bill clients.

Financial Planning and Consulting:

We charge a flat fee for Financial Planning and Consulting services. The total estimated fee, as well
as the ultimate fee that we charge you, is based on the scope and complexity of our engagement
with you. Flat fees generally range from $500 to $10,000.

We require a retainer of fifty-percent (50%) of the ultimate financial planning fee with the
remainder of the fee directly billed to you and due to us within thirty (30) days of your financial
plan being delivered or consultation rendered to you. In all cases, we will not require a retainer
exceeding $1,200 when services cannot be rendered within 6 (six) months.

Retirement Plan Consulting:

We charge a fee based on the percentage of Plan assets under management for our Retirement Plan
Consulting service. The total estimated fee, as well as the ultimate fee charged, is based on the scope
and complexity of our engagement with the client. Fees based on a percentage of managed Plan
assets will not exceed 1.00%. The fee-paying arrangements for Retirement Plan Consulting service
will be determined on a case-by-case basis and will be detailed in the signed consulting agreement.

Newsletters:

We do not charge a separate fee for our newsletters to our clients.

Other Types of Fees & Expenses

Clients will incur transaction charges for trades executed in their accounts. These transaction fees
are separate from our fees and will be disclosed by the firm that the trades are executed through.
Also, clients will pay the following separately incurred expenses, which we do not receive any part
of: charges imposed directly by a mutual fund, index fund, or exchange traded fund which shall be
disclosed in the fund’s prospectus (i.e., fund management fees and other fund expenses). Charles
Schwab & Co., Inc. (“Schwab”) does not charge transaction fees for U.S. listed equities and exchange
traded funds.

Termination & Refunds

We charge our advisory fees quarterly in advance for our Comprehensive Portfolio Management
and service. Either party to a Comprehensive Portfolio Management agreement may terminate the
agreement by providing written notice to the other party. Upon notice of termination, we will
proceed to close your account and process a pro-rata refund of any unearned advisory fees.

Either party to a Financial Planning and Consulting agreement may terminate the agreement by
providing written notice to the other party. Upon notice of termination, we will process a pro-rata
refund of any unearned advisory fees. In the event that we are compensated through a flat fee and
you terminate the financial planning agreement prior to completion of the work specified in the
client agreement, you shall be billed for the actual hours spent prior to termination.

Either party to a Retirement Plan Consulting Agreement may terminate at any time by providing
written notice to the other party. Full refunds will only be made in cases where cancellation occurs

within 5 business days of signing an agreement. After 5 business days from initial signing, either
party must provide the other party 30 days written notice to terminate billing. Billing will
terminate 30 days after receipt of termination notice. Clients will be charged on a pro-rata basis,
which takes into account work completed by our firm on behalf of the client. Clients will incur
charges for bona fide advisory services rendered up to the point of termination (determined as 30
days from receipt of said written notice) and such fees will be due and payable.

Commissionable Securities Sales

We do not sell securities for a commission.

ITEM 7. TYPES OF CLIENTS AND ACCOUNT REQUIREMENTS

We have the following types of clients:
   • Individuals and High Net Worth Individuals;
   • Pension and Profit-Sharing Plans;
   • Charitable Organizations

Our firm does not impose requirements for opening and maintaining accounts or otherwise
engaging us.