Sacks & Associates LLC

Item 5. Fees and Compensation
The Firm’s Fees and Compensation for Services.

The annual fee for investment management services will be charged as a percentage of assets
under management, according to the schedule below:

                      Annual Fee                            Assets Under Management
                        1.25%                                    Up to $1,000,000
                        1.00%                               $1,000,000 up to $2,000,000
                         .90%                               $2,000,000 up to $4,000,000
                         .80%                               $4,000,000 up to $5,000,000
                         .75%                                    Above $5,000,000

Clients will be invoiced in advance at the end of each calendar quarter based upon the quarter end
market value of the assets in the client’s account as of the last business day of the previous quarter.
For clients with multiple accounts, the Company, in its sole discretion, may combine the amount
of assets in more than one account in determining the fee to be charged to that client for services
on the client’s total amount of assets. The Company, in its sole discretion, may charge a different
management fee based upon certain criteria (i.e. anticipated future earning capacity, anticipated
future additional assets, dollar amount of assets to be managed, related accounts, type of services
required, account composition, negotiations with client, etc.). In the event of termination of the
Company’s services before the end of a billing period for which the Firm received a pre-paid fee,
the Firm shall pro-rate its fee through the date of termination and promptly return any unearned
portion of that pre-paid fee to the client.

Compensation for the Sale of Insurance Products and Annuities

Certain of the Company’s personnel are also licensed insurance producers/agents with several
insurance companies in various states. In such a capacity , each such personnel may recommend
the purchase of certain insurance or annuity products where they will receive a share of revenue
derived from the sale of such insurance or annuity products. For further discussion concerning
these activities, see Item 10.A of this Disclosure Brochure.

The activity disclosed in Item 5.B.1 above represent a conflict of interest and gives the Company
personnel engaging in such insurance activities an incentive to recommend the purchase of
insurance or annuity products for a client account based on their ability to receive compensation
from such a purchase, rather than based on a client’s needs. However, the Firm addresses this
conflict by (a) requiring that any such transaction be on commercially reasonable terms that are
generally consistent with industry standards, and (b) neither requiring nor expecting that a client
will purchase any such insurance or annuity products from or through Firm personnel. In addition,
any such Firm personnel must maintain compliance with applicable rules and regulations that
govern the sale of such insurance or annuity products.

Clients have the option to purchase investment or annuity products that the Company recommends
through other brokers or agents that are not affiliated with the Company.

   The Company’s advisory fee is in addition to any commission that Company personnel may
receive and the Company will not reduce its advisory fee to offset such commission. The Company
does not charge advisory fees on the value of the insurance or annuity contract after it has been
purchased by Firm personnel.

General Information on Fees.

All fees are negotiable.

The Company’s fees shall be deducted from the client’s account by the client’s account custodian.

With respect to the Company’s investment management services, the client will also incur charges
imposed directly by the custodian of the client’s account, transaction charges imposed by the
broker-dealer executing securities transactions for the client’s account, and fees and expenses
imposed directly by mutual funds held in or for the client’s account. For further discussion

concerning the Company’s brokerage practices, please see Item 12 of this Disclosure Brochure.
All fees paid to the Company for its services are separate and distinct from the fees and expenses
charged directly by the client’s custodian, the broker-dealer, and mutual funds. The fees and
expenses imposed by mutual funds are described in each fund’s prospectus, and will generally
include a management fee, other fund expenses, and a possible distribution fee. If the fund also
imposes sales charges, a client may pay an initial or deferred sales charge. The client should
review both the fees charged by the funds and the fees charged by the Company to fully understand
the total amount of fees to be paid by the client and to thereby evaluate the advisory services being
provided.

We charge an hourly rate for our financial advice. The hourly fee for Neil Sacks is $400 and
supporting staff fee is $250 per hour.

We require a retainer of fifty percent (50%) of the estimated total financial advice or consulting
fee with the remainder of the fee directly billed to you and due to us within thirty days of your
retirement plan being delivered or consultation being rendered to you.

Item 7. Types of Clients
The Firm’s Clients.

The firm’s client base is comprised of individuals, high net worth individuals, and corporations or
other business entities.

Requirements for Opening or Maintaining an Account.

Advisory Agreement. Each client will be required to sign a servicing agreement with the Company
that sets forth the terms and conditions of their relationship with the Company.