Packerland Brokerage Services Inc

Item 5:          Fees and Compensation

Financial Planning Fees:

Packerland's Financial Planning fee is determined based on the nature of the services being
provided and the complexity of each client’s circumstances. All fees are fully disclosed to the
client in the terms of the agreement and are negotiated between the client and the Packerland
IAR. Once the fees are agreed upon, an agreement is entered into between Packerland and the
client, which is subject to review and final approval by a registered principal of Packerland. Thus,
all fees are agreed upon prior to entering into a contract with any client.

Generally, Packerland’s Financial Planning fees are calculated and charged on either (1) a fixed-
fee basis, typically ranging from $500 to $10,000 depending on the complexity of the plan and
the specific arrangement reached with the client, (2) on an hourly basis set by the Packerland
IAR (the hourly rate depends on the complexity of the plan, nature of the scope of work, and the
experience of the financial professional but typically does not exceed $400/hour), or (3) as a
percentage of assets under management. Fees must be appropriate to the services provided.
How fees are billed is dependent on factors such as: client's payment preference, complexity of
plan, adviser's level of expertise and experience and level of research required to achieve client's
expectations of advice given and is set forth in the agreement. Each client will be aware of and
agree to the specific fee to be charged before work is performed.

Packerland may request a retainer in order for the client to retain the services of Packerland as
the financial planner. The retainer fee is NOT refundable, but the amount of the retainer will be
applied to the fee amount at the conclusion of the services. Thus, the retainer is not an advance
payment. Packerland generally does not require advance payments. However, any advance
payments to Packerland will never exceed $500 for work that will not be completed within six
months unless federal statutes preempt the state blue sky laws. In that case, we will not require
or solicit payment of fees in excess of $1,200.00 more than six months in advance of services
rendered. The balance is due upon completion of the plan. Fees for financial planning services
may be waived if additional investments are made as a result of financial planning
recommendations.

Investments made in effectuating financial planning advice generate a commission to Packerland
and the Packerland IAR from the purchase or sale of securities products when the transaction is
processed through Packerland’s broker-dealer. Investments made in effectuating financial
planning advice generates a fee to Packerland and the Packerland IAR when held in an advisory

Packerland Firm Brochure                                                                                 21

account wherein a fee is charged on the assets under management. These fees and commissions
present a conflict of interest because Packerland or the Packerland IAR is incentivized to
recommend transactions that will generate commissions or fees. Waiver of the financial planning
fee where the client opens an account creates an additional conflict of interest because
Packerland and/or the Packerland IAR obtains a financial benefit when the client increases assets
held in a fee-based account or enters into transactions that generates commissions to Packerland
and/or the Packerland IAR in a brokerage account.

Fees for financial planning services are generally billed in arrears on a quarterly basis but may
be billed monthly, semiannually, annually, hourly, or on a one-time basis depending on the
arrangement reached with the client. Fees may also be waived or reduced based on relevant
reduced or absent activity in specified accounts

Commissions: Recommendations for the purchase or sale of securities investments which
generate a commission to the IAR may be in addition to the fees set forth herein. Any portion of
the fee may be reduced or waived based on a commission earned and the agreement, as
negotiated between the client and Packerland.

Investment Management Services:

                 Individual Portfolio Management Fee:

Fees are billed as a percentage of assets under management for specified accounts under the
terms of the client agreement. Accounts applicable to those terms are clearly identified including
the name of various third-party providers (including, but not limited to, mutual funds, insurance
companies, brokerage accounts, third-party money managers, etc.), account number(s), and
initial account value. Billing is generally in advance and on a quarterly basis. Specific fees will be
set forth in the applicable client agreement as negotiated between the client and the Packerland
IAR. To verify accurate billing based on the terms of the client agreement, the clearing firm
supplies Packerland with copies of applicable client statements.

                 Investment Management Services Provided With or By Third-Party Money-
                 Managers Co-Advisory Program Fees:

Clients participating in the Co-Advisory Programs will be charged program fees in addition to
the advisory fee charged by Packerland. Such fees will include the investment advisory fees
of the third-party money manager, which may be charged as part of a wrap fee arrangement and
is set forth in the third-party money manager investment advisory agreement, agreed to by the
client. In a wrap fee arrangement, clients generally pay a single fee for advisory, brokerage and
custodial services (but may be assessed other charges, such as the Section 31 fees (or
“regulatory fee”) which are charged to Packerland by its custodian and passed through to the
clients). Client’s portfolio transactions may be executed without commission charge in a wrap fee
arrangement. In evaluating such an arrangement, the client should also consider that, depending
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Item 7.          Types of Clients

Packerland provides advisory services to the following types of clients: individuals, including high
net worth individuals; trusts, estates, corporations or other businesses; charitable organizations;
and sponsors or other fiduciaries to retirement plans. Packerland does not have minimum
amounts clients must have to open an advisory account. However, in order for clients to
participate in certain programs, allocations or products, those programs, allocations or products
may have minimum investment requirements. If account size impacts the investment programs
available to a client, the Packerland IAR will discuss those minimums with the client at that time.

Co-Advisory Program, Advisory Programs Using Hilltop and the Envestnet Platform and
Solicitors Programs have account minimums that vary depending on the third-party money
manager that is selected. Other terms may apply to account opening and maintenance, which
may be found in the third-party money manager’s investment advisory agreement.