Sprinkle Financial Consultants LLC

Item 5: Fees and Compensation

Compensation
SFC bases its fees on a percentage of assets under management, fixed fees, and hourly charges.
SFC’s fees are described below.

Compensation – Investment Management Services
In the event the client desires, the client can engage SFC to provide investment management
services on a fee-only basis. In the event the client determines to engage SFC on a fee-only
basis, SFC shall charge an annual investment management fee based upon a percentage of the
market value of the assets being managed by SFC. The investment management fee is
graduated based on assets under management, and ranges from 1.50% - 0.225% as specifically
set forth on the fee schedule attached to the Investment Advisory Agreement executed by the
client. The investment management fee is dependent upon both objective and subjective
factors, including the market value of assets under management, the specific type of
investment management services to be rendered, and the overall complexity of the investment
management process.

SFC’s annual investment management fee shall be prorated and paid quarterly, in arrears,
based upon the market value of the assets on the last day of the previous quarter.

In addition, SFC may provide investment related consulting services on a fixed fee or hourly fee
basis. Fixed fees generally range from $2,500 - $50,000, and hourly rates range up to $750 per
hour, depending upon the professional rendering the service and the scope of the work to be
provided.

Other Fees
Clients pay custodians brokerage commissions and/or transaction fees for effecting certain
securities transactions (i.e., transactions fees are charged for certain no-load mutual funds,
commissions are charged for individual equity/debt securities transactions). The client will also
incur, relative to all mutual fund purchases, charges imposed at the mutual fund level (e.g.,
management fees and other fund expenses).

These fees and expenses are described in each fund’s or sub account’s prospectus. These fees
will generally include a management fee, other expenses, and a possible distribution fee. If the
fund also imposes sales charges, a client may pay an initial or deferred sales charge.

A client could invest in a mutual fund or sub-account directly, without the services of SFC. In
that case, the client would not receive the services provided by SFC which are designed, among
other things, to assist the client in developing their overall investment plan and determining
which mutual funds or sub-accounts are most appropriate to each client’s financial condition
and objectives. Accordingly, the client should review both the fees charged by the funds/sub-

accounts and the fees charged by SFC to fully understand the total amount of fees to be paid by
the client and to thereby evaluate the advisory services being provided.

Such charges, commissions and fees are exclusive of and in addition to SFC’s fee, and SFC shall
not receive any portion of these commissions, fees, and costs.

Agreement Terms
The Investment Advisory Agreement between SFC and the client will continue in effect until
terminated by either party by written notice. SFC’s investment management fee shall be
prorated through the date of termination, and any remaining balance shall be promptly
refunded to the client.

Neither SFC nor the client may assign the Investment Advisory Agreement without the prior
written consent of the other party. Transactions that do not result in a change of actual control
or management of SFC shall not be considered an assignment.

Cash Balances
Some of your assets may be held as cash and remain uninvested. Holding a portion of your
assets in cash and cash alternatives, i.e., money market fund shares, may be based on your
desire to have an allocation to cash as an asset class, to support a phased market entrance
strategy, to facilitate transaction execution, to have available funds for withdrawal needs or to
pay fees or to provide for asset protection during periods of volatile market conditions. Your
cash and cash equivalents will be subject to our investment advisory fees unless otherwise
agreed upon. You may experience negative performance on the cash portion of your portfolio if
the investment advisory fees charged are higher than the returns you receive from your cash.

Retirement Plan Rollover Recommendations
As part of our investment advisory services to our clients, we may recommend that clients roll
assets from their employer’s retirement plan, such as a 401(k), 457, or ERISA 403(b) account
(collectively, a “Plan Account”), to an individual retirement account, such as a SIMPLE IRA, SEP
IRA, Traditional IRA, or Roth IRA (collectively, an “IRA Account”) that we will advise on the
client’s behalf. We may also recommend rollovers from IRA Accounts to Plan Accounts, from
Plan Accounts to Plan Accounts, and from IRA Accounts to IRA Accounts.

If the client elects to roll the assets to an IRA that is subject to our advisement, we will charge
the client an asset-based fee as set forth in the advisory agreement the client executed with our
firm. This creates a conflict of interest because it creates a financial incentive for our firm to
recommend the rollover to the client (i.e., receipt of additional fee-based compensation).
Clients are under no obligation, contractually or otherwise, to complete the rollover. Moreover,
if clients do complete the rollover, clients are under no obligation to have the assets in an IRA
advised on by our firm. Due to the foregoing conflict of interest, when we make rollover
recommendations, we operate under a special rule that requires us to act in our clients’ best
interests and not put our interests ahead of our clients.’

Under this special rule’s provisions, we must:

   •    meet a professional standard of care when making investment recommendations (give
        prudent advice);
   •    never put our financial interests ahead of our clients’ when making recommendations
...

Types of Clients
As described in Item 4, SFC‘s clients include individuals, high-net worth individuals, trusts, and
charitable organizations.

Account Minimums
SFC requires a minimum account of $1,000,000 for investment advisory clients, although this
may be negotiable under certain circumstances. SFC may group certain related client accounts
for the purposes of achieving the minimum account size.