Spreng Capital Management Inc

Item 5 Fees and Compensation

Fees are negotiable and are based upon an annual percentage of the net asset value of client’s
portfolio or an hourly charge. The fees are determined taking into account the time and costs
associated with the supervision of the client’s assets. Generally, annual fees do not exceed 1.00%
and are not less than 0.25% of the net asset value of the client’s portfolio. While fees are
negotiable, SCM has adopted the following investment advisory fee guideline for new clients.

Clients with Investment Assets in Equity and Fixed Income

1.00% of the first $2,000,000;
0.55% of the next $3,000,000; and
0.25% on all amounts thereafter

In some instances, employees, close friends and relatives of the principals and employees of
SCM will not be charged an investment advisory fee or can be charged an annual fee which is
less than the suggested guidelines.

Fees are generally billed quarterly in arrears. Quarterly fees are calculated by applying the
annual fee schedule to the value of the assets that are supervised by SCM at the end of each
calendar quarter. Initial fees for new client accounts will be pro-rated to the end of the initial

quarter. Likewise, fees for contributions to existing client accounts will be pro-rated to the end
of the current quarter at the discretion of SCM. Due to the associated administrative costs
involved, SCM’s investment advisory fee is not refundable in the event that a client withdraws
only a portion of the funds in the client’s account during a given quarter.

In addition to the foregoing fee arrangement, to the extent that client’s assets are invested in a
mutual fund, the fund’s investment advisor will also receive an investment advisory fee. This
fee will vary depending upon the mutual fund or separate account. Generally, it is no less than
0.15% and no greater than 1.00% annually, but may be greater or less. These amounts are
deducted from the mutual funds or separate account’s assets before determining the net asset
value of each share of the fund or separate account. Also, the fund or separate account will incur
certain other administrative expenses. These amounts will vary from fund to fund or separate
account to separate account and are deducted from the mutual funds or separate account’s assets
before determining the net asset value of each share of the fund or separate account. It should
be understood that the client would not pay SCM an annual advisory fee in the event the client
invested directly with each mutual fund.

SCM also utilizes low-cost index exchange-traded funds (“ETFs”) in client portfolios. ETFs
charge internal management fees and operating expenses, which are disclosed in each ETF’s
prospectus and reflected in the ETF’s expense ratio.

Although these expenses are not charged directly to clients by SCM, clients will indirectly
bear their proportionate share of the internal expenses of the ETFs in which they invest. These
expenses reduce the ETF’s net asset value and overall investment returns.

Such expenses are separate from and in addition to the advisory fees charged by SCM and any
brokerage commissions or transaction costs incurred in connection with the purchase or sale of
securities.

SCM does not receive any portion of the internal fees or expenses charged by ETFs.

In certain situations, clients transacting in over-the-counter securities will pay an agency
commission in addition to a markup or a markdown on the security.

Fees are generally deducted directly from the clients’ accounts at the end of the quarter. Some
clients wish to pay SCM from funds outside of their accounts and this is acceptable. If a client
wishes to use individual securities or debt instruments, there may be an additional transaction
charge levied against the client for each transaction by the custodian. No one at SCM receives
any compensation from any source other than the management fees collected from our clients.
Clients can purchase recommended securities through a different source or custodian than the
one that SCM might recommend. If SCM is retained by a client or individual to assist with
financial planning our rate is $250 an hour for these services.

Item 7 Types of Clients

SCM provides financial advisory services to individuals, business entities, trusts, foundations
and endowments and qualified and non-qualified retirement plans.