Pelkonen and Associates LLC

Item 5 – Fees and Compensation

The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into one or
more written agreements with the Advisor.

A. Fees for Advisory Services
Investment Management Services
Investment management fees are paid monthly, at the end of each month, pursuant to the terms of the investment
management agreement. Investment management fees are based on the market value of assets under
management at the end of each month. Investment management fees are based on the following tiered fee
schedules.

Equity and Balanced Portfolios - Accounts invested in stocks or a mixture of stocks and bonds will be based on
the following fee schedule:

                                          Relationships Under $500,000
                                Assets Under Management ($)          Annual Rate (%)
                             First $250,000                              1.50%
                             Next $250,000 (up to $500,000)              1.20%

                                            Relationships Over $500,000
                                Assets Under Management ($)           Annual Rate (%)
                             First $1,000,000                             1.00%
                             Next $1,500,000 (up to $2,500,000)           0.90%
                             Next $2,500,000 (up to $5,000,000)           0.75%
                             Next $2,500,000 (up to $7,500,000)           0.60%
                             Next $2,500,000 (up to $10,000,000)          0.55%
                             Next $10,000,000 (up to $20,000,000          0.35%
                             Next $15,000,000 (up to $35,000,000)         0.25%
                             Over $35,000,000                           Negotiable

                                               Pelkonen and Associates LLC
                                     425 Broadhollow Road, Suite 112, Melville, NY 11747
                                      Phone: (631) 396-1032 | http://ampwealthcare.com

Individual Fixed Income Accounts - Accounts employing a “bond ladder” strategy which invests exclusively in
bonds, and accounts with advisory annuities managed by the advisor will be based on the following fee schedule:

                               Assets Under Management ($)                    Annual Rate (%)
                            First $1,000,000                                      0.35%
                            Next $1,500,000 (up to $2,500,000)                    0.32%
                            Next $2,500,000 (up to $5,000,000)                    0.26%
                            Next $2,500,000 (up to $7,500,000)                    0.21%
                            Next $2,500,000 (up to $10,000,000)                   0.19%
                            Next $10,000,000 (up to $20,000,000                   0.12%
                            Next $15,000,000 (up to $35,000,000)                  0.09%
                            Over $35,000,000                                      0.05%

The investment management fee in the first month of service is prorated from the inception date of the account[s] to
the end of the first month. Fees may be negotiable at the sole discretion of the Advisor. The Advisor typically offers
a tiered, incremental fee schedule (as detailed above) where the rate is reduced as assets under management
increase. In certain circumstances, the Advisor may charge a fixed annual rate or fixed fee for its services. The
Client’s fees will take into consideration the aggregate assets under management with the Advisor across all
accounts, unless otherwise agreed in writing. All securities held in accounts managed by Pelkonen will be
independently valued by the Custodian. The Advisor will conduct periodic reviews of the Custodian’s valuations to
ensure accurate billing.

The Advisor’s fee is exclusive of and in addition to any applicable securities transaction and custody fees, and other
related costs and expenses described in Item 5.C below, which may be incurred by the Client. However, the
Advisor shall not receive any portion of these commissions, fees and costs.

Clients may make additions to and withdrawals from their account[s] at any time, subject to Pelkonen’ right to
terminate an account. Additions may be in cash or securities provided that Pelkonen reserves the right to liquidate
any transferred securities or decline to accept particular securities into a Client’s account[s]. Clients may withdraw
account assets on notice to Pelkonen, subject to the usual and customary securities settlement procedures.
However, Pelkonen designs its portfolios as long-term investments, and the withdrawal of assets may impair the
achievement of a Client’s investment objectives. Pelkonen may consult with its Clients about the options and
ramifications of transferring securities. However, Clients are advised that when transferred securities are liquidated,
they may be subject to transaction fees, fees assessed at the mutual fund level (i.e. contingent deferred sales
charge) and/or tax ramifications.

Use of Independent Managers
As noted in Item 4, the Advisor may implement all or a portion of a Client’s investment portfolio utilizing one or more
Independent Managers. To eliminate any conflict of interest, the Advisor does not earn any compensation from an
Independent Manager. The Advisor will only earn its investment advisory fee as described above. Independent
Managers typically do not offer any fee discounts but may have a breakpoint schedule which will reduce the fee
with an increased level of assets placed under management with an Independent Manager. The Advisor will
allocate a portion of the advisory fee collected to the Independent Manager pursuant to the terms of the executed
...

Item 7 – Types of Clients

Pelkonen offers advisory services to individuals, high net worth individuals, trusts, estates, charitable
organizations and businesses. Pelkonen generally does not impose a minimum relationship size.