Severin Investments LLC

ITEM 5 – FEES AND COMPENSATION
Our fees for advisory services are described below. Each of our services is provided separately.
As a result, you may have multiple agreements with SI for Portfolio Management and/or 401k
Consulting and Financial Planning as described below.

 1. Portfolio Management Services
Sub-Advisory Services

Severin Investments charges an annual asset-based fee, which is negotiable. Our default billing
practices vary by custodian. However, we can bill to match how the advisor bills the clients for
convenience. If the advisor bills quarterly or in arrears, we can also bill this way.

Charles Schwab: We bill monthly in advance based on the average daily balance of the account
during the billing cycle. The custodian deducts our fee directly from the account as calculated
and submitted by us.

Goldman Sachs Custody Solutions: We bill monthly in advance based on the value of the account
on the last day of the previous month. GSCS calculates and deducts our fee directly from the
account.

Overlay Managers and TAMPs

Our maximum annual fee is 50 bps (0.50%) of assets under advisement. This fee may be
negotiable. The TAMP calculates and deducts the fee pursuant to its own policies before
submitting it to us.

Portfolio Management for Individuals

We charge an annual asset-based fee, billed differently depending on the policies of the account
custodian.

Charles Schwab: The account is billed monthly in advance based on the average daily value of
the client’s account during the billing cycle. We charge a tiered fee, meaning the fee is a schedule
of rates applicable to different breakpoints. The effective fee rate is the weighted average of
each breakpoint applicable to the account value. Householding of client accounts to achieve
higher breakpoints may be available by agreement with the Client. Severin Investments uses a
third-party software called Black Diamond to calculate the fee, and then submits the fee to be
debited directly from the account.

GSCS: The account is billed monthly in advance based on the ending market value of the account
on the last business day of the preceding month. We charge a tiered fee, meaning the fee is a
schedule of rates applicable to different breakpoints. The effective fee rate is the weighted
average of each breakpoint applicable to the account value. The custodian calculates and debits
the fee.

The fee schedule below reflects our maximum fee schedule, which is negotiable depending on
the level of service desired by the client. Your specific fee is documented in the Portfolio
Management Agreement we have with you.

Discretionary Fee Schedule

                          Assets Managed:                      Tiered Fee is:

                           First $500,000                          2.00%

                           Next $500,000                           1.50%

                           Next $4 million                         1.10%

                           Over $5 million                     Negotiable

Severin Investments charges a maximum administration fee on non-discretionary accounts of
1.95% of account assets. Non-discretionary accounts are not invested in SI’s models and are
holding only securities that the client has chosen. We may or may not provide advice and
research on these accounts, depending on our specific agreement with you. We will maintain
the accounts along with your discretionary accounts and place trades at your direction. This fee
may be negotiable. The negotiated fee will be reflected in the client’s Portfolio Management
Agreement.

Adviser imposes a minimum annual fee of $1,500 per household unless otherwise negotiated.

Criteria we use in negotiating asset-based fees are based upon and not limited to the following:

       •   Number of actual accounts
       •   Size of the relationship
       •   Inclusion of Financial Planning services
       •   Relationship growth opportunities

       •   Investment restrictions
       •   Other factors

Account minimums:

Severin Investments imposes a minimum account size of $50,000 and a minimum household of
$500,000 to open an account, which may be waived at our discretion.

Grandfathering of Minimum Account Requirements and Advisory Fees:

Pre-existing advisory clients are subject to SI’s minimum account requirements and advisory
fees in effect at the time the client entered the advisory relationship.

Fees pro-rated:

For account(s) opened during a billing cycle, portfolio management fees are pro-rated
contingent on the number of days the account was open during the billing cycle that our
services were provided. The date on which the pro-rated fee is charged depends on the
custodian of the account.

Charles Schwab: Pro-rated fees for partial billing cycles are based on average daily balance of
the account during the partial billing cycle. The pro-rated fee is charged along with the next
billing cycle’s fee and is shown as a separate line item on the statement.

GSCS: Pro-rated fees are charged based on the starting value of the account and are charged
immediately. This fee is shown as a separate line item on the statement.

Refunds are also pro-rated based on the number of days the account was open during the billing
cycle.
Fee Payment:

Fees will be debited from the account in accordance with the client authorization in the PMA.

In paying fees for portfolio management services, we request you authorize us, in the PMA we
have with you, the direct debiting of our fees:

Fees are Direct Debit: Our advisory fees, as described above, initially and every fee cycle,
thereafter, are debited (deducted) from your custodial account(s). This authorization will be
both in the PMA we have with you and in the account application you enter into with your
custodian.

At least quarterly, your custodian will either mail you a statement or make it availability
electronically. It will list your positions and show all account transactions, including: trades,
...

ITEM 7 – TYPES OF CLIENTS
We provide our discretionary investment management services to the following types of
Clients:

    •   Individuals and high net worth individuals
    •   Trusts, estates, charitable organizations
    •   Trustees/Sponsors of Defined Contribution Plans
    •   Financial Advisors or Financial Planners as a Third-Part Asset Manager
    •   Other entities

As previously disclosed in Item 5, our firm has established certain minimum account
requirements, based on the nature of the service(s) being provided. For a more detailed
understanding of those requirements, please review the disclosures for each applicable service.