Prosperity Advisers LLC

Item 5: Fees and Compensation

Method of Compensation and Fee Schedule

Prosperity Advisers bases its fees on assets under management, negotiable fixed fees and
solicitor fees from TPMs for legacy clients only.

ASSET MANAGEMENT, ALTERNATIVE ASSET MANAGEMENT, and ANNUITY MANAGEMENT

Prosperity Advisers charges an annual investment advisory fee based on the total assets
under management. The same fee applies to all investments offered inclusive of Stocks,
Bonds, Mutual Funds, ETFs, Alternative Investments, Annuities, etc.:

The fee shall generally be between 0.50% and 1.50% of the client’s assets under
management.

The investment advisory fee is negotiable depending upon objective and subjective factors
including but not limited to: the amount of assets to be managed; portfolio composition; the
scope and complexity of the engagement; the anticipated number of meetings and servicing
needs; related accounts; future earning capacity; anticipated future additional assets; the
professional(s) rendering the service(s); prior relationships with the Registrant and/or its
representatives, and negotiations with the client. As a result of these factors, similarly
situated clients could pay different fees. Legacy clients may pay lower fees and certain
clients may have fees different than those specifically set forth above.

Fees are billed in arrears, most often quarterly, though for some investments the fees are
billed monthly and some annually, based on the amount of assets managed as of the close of
business on the last business day of the previous period.

The valuations of marketable securities are made by the qualified custodian holding the
assets and the qualified custodian follows their standard valuation procedures. Valuations
on private equities or private funds are based upon the valuations made by the manager or
general partners of the private equities or funds. For billing purposes and in the event,
valuation is not promptly available at the end of each quarter, fees will be based on the most
recent reported net asset value (“NAV”) or asset value at that time.

Clients may terminate their account within five (5) business days of signing the Investment
Advisory Agreement with no obligation and without penalty. Clients may terminate advisory
services with thirty (30) days written notice. For accounts opened or closed mid-billing period,
any unpaid earned fees will be due to Prosperity Advisers. Client shall be given thirty (30) days
prior written notice of any increase in fees. Any increase in fees will be acknowledged in
writing by both parties before any increase in said fees occurs. If this Agreement is terminated

prior to the end of the billing cycle, Prosperity Advisers shall be entitled to a prorated fee
based on the number of days during the fee period services were provided.

ERISA PLAN SERVICES

The annual fees are based on the market value of the Included Assets and will not exceed
1.5%. The annual fee is negotiable and may be charged as a percentage of the Included
Assets or as a flat fee. Fees may be charged monthly or quarterly in arrears or in advance
based on the assets as calculated by the custodian or record keeper of the Included Assets
(without adjustments for anticipated withdrawals by Plan participants or other anticipated
or scheduled transfers or distribution of assets). If the services to be provided start any
time other than the first day of a quarter or month, the fee will be prorated based on the
number of days remaining in the quarter or month. If this Agreement is terminated prior
to the end of the billing cycle, Prosperity Advisers shall be entitled to a prorated fee based
on the number of days during the fee period services were provided or Client will be due a
prorated refund of fees for days services were not provided in the billing cycle.

The fee schedule, which includes compensation of Prosperity Advisers for the services is
described in detail in Schedule A of the ERISA Plan Agreement. The Plan is obligated to pay
the fees; however the Plan Sponsor may elect to pay the fees. Client may elect to be billed
directly or have fees deducted from Plan Assets. Prosperity Advisers does not reasonably
expect to receive any additional compensation, directly or indirectly, for its services under
this Agreement. If additional compensation is received, Prosperity Advisers will disclose this
compensation, the services rendered, and the payer of compensation. Prosperity Advisers
will offset the compensation against the fees agreed upon under the Agreement.

FINANCIAL PLANNING AND CONSULTING

Prosperity Advisers may charge an hourly fee for financial planning. Financial planning
services may include, but are not limited to, the following services:

  •   Social Security Analysis
  •   Pension Review
  •   Income Planning
  •   Insurance Policy Review and Recommendations
  •   Fee Analysis
  •   Asset Allocation Review
  •   Tax Planning
  •   Legacy Planning
  •   Roth Conversion Analysis
  •   Annual Review of Portfolio Recommendations

Prior to the planning process the Client will be provided an estimated plan fee and an
outline of services to be provided. Services are completed and delivered inside of thirty

(30) days contingent upon timely delivery of all required documentation. Client may cancel
within five (5) business days of signing Agreement with no obligation and without penalty.
If the Client cancels after five (5) business days, any unearned fees will be refunded to the
Client, or any unpaid earned fees will be due to Prosperity Advisers. Prosperity Advisers
reserves the right to waive the fee should the Client implement the plan through Prosperity
Advisers.

HOURLY FEES

Financial Planning Services are offered based on an hourly fee of $400 per hour. Fees for
financial plans are billed 50% in advance with the balance due upon plan delivery,
however, we will never require prepayment of any fees of $1,200 or more, six months in
advance or more.
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Item 7: Types of Clients

Prosperity Advisers provides investment advice to individuals, high net worth individuals,
pension and profit-sharing plans, trusts, estates, charitable organizations, corporations,
and other business entities. Client relationships vary in scope and length of service. There
is no minimum to open an account.