Steffes Financial Ltd

Item 5: Fees and Compensation

A. Fee Schedule

Discretionary Investment Advisory Account Management Fees
and Qualified Retirement Account Investment Consulting Fees

                 Annual Percentage                            Portfolio Value
            1.00% on the first $1,000,000                      $0 - $1,000,000

            0.60% on the next $1,000,000                 $1,000,001 - $2,000,000

            0.50% on the next $1,000,000                  $2,000,001 - $3,00,000

            0.40% on all additional assets                  Above $3,000,000

Steffes Financial generally adheres to the fee schedule above, has a minimum household
portfolio size of $500,000, and a minimum annual fee of $5,000. Fees are based on each client’s
unique situation and complexity and at the sole discretion of Steffes Financial, fees could be
higher or lower than the above fee schedule. Steffes Financial is allowed to accept portfolios less
than $500,000. The above fee is negotiable based on each Client’s specific situation.
Fees are paid quarterly in arrears. Fees are due on the first business day following the quarter-
end and are based on the account’s asset value as of the last business day of the quarter
regardless of the cash flows and transfers during the quarter being billed. Clients can terminate
their contract with thirty days written notice. Fees that are drafted from a client’s investment
account are reported on the client’s brokerage account statement.
Clients will have a period of five (5) business days from the date of signing an investment
advisory agreement to unconditionally rescind the agreement and receive a full refund of all
fees. Thereafter, either party can terminate the investment advisory agreement with 30 days
written notice. Upon termination, fees will be prorated to the effective date of termination
based on number of days in the calendar quarter. The pro-rata fee due will be deducted from
the client’s account or Steffes Financial will issue an invoice to the client for the pro-rated
amount of fees due for services provided through the effective date of termination.
For the provision of consulting services to clients who are individual qualified retirement plan
participants, fees will be automatically deducted from an alternate account as designated in the
Financial Planning Agreement, or if agreed to in advance, those clients who are individual
qualified plan participants can request Steffes Financial to bill the client directly rather than
have fees automatically deducted from an alternate account. If fees are billed directly to the
client, then such fees for Steffes Financial services shall be due within thirty (30) days after the
client's receipt of the billing notice. The exact fee charged and billing arrangements for each
client will be agreed upon with the client prior to commencing services. The fee and billing
arrangements will be detailed in the client’s Financial Planning & Investment Consulting
Agreement.

Steffes Financial does not receive any 12(b)(1) fees nor commissions from Charles Schwab.
The account Custodian will charge fees which are in addition to and separate from the
investment advisory service fee. Custodians will charge accounts for various transaction costs,
retirement plan and administration fees. In addition, some mutual fund assets deposited in the
account will be subject to deferred sales charges and 12b-1 fees and other mutual fund annual
expenses as described in the fund’s prospectus. Advisory clients should also note that fees for
comparable services vary and lower fees for comparable services could be available from other
sources.

Qualified Retirement Plan Fees – Fiduciary Consulting Services

In addition to the information provided in Item 4 – Advisory Business, this section provides
additional details regarding our firm’s services along with descriptions of each service’s fees and
compensation arrangements. It should be noted that lower fees for comparable service could
be available from other sources. The exact fees and other terms will be outlined in the
agreement between you and Steffes Financial.

Steffes Financial will require a minimum plan asset size of $500,000 and a minimum annual
consulting fee of $4,000. However, at our sole discretion, fees could be higher or lower and we
have the ability to accept plans with assets less than $500,000. Our fees are negotiable based
upon each client’s specific situation, including factors such as, but not necessarily limited to, the
size of the qualified retirement plan, the number of plan participants, and the specific services
contract for.

Our clients that contract us only for Fiduciary Consulting Services, we will require as
consideration for the provisions of the Fiduciary Consulting Services, a service fee on a quarterly
basis pursuant to the following schedule:

Fee Schedule for Clients Receiving Fiduciary Consulting Services:

                 Annual Percentage                               Plan Value

             0.80% on the first $500,000                        $0 - $500,000

             0.60% on the next $500,000                    $500,001 - $1,000,000

            0.40% on the next $1,000,000                  $1,000,001 - $2,000,000

            0.30% on the next $3,000,000                  $ 2,000,001 - $5,000,000

            0.20% on all additional assets                   Above $5,000,000

Qualified Retirement Plan Fees – Fiduciary Management Services

Fiduciary Management Services are only available if you are already using the Fiduciary
Consulting Services, and the fee for the Fiduciary Management Services will be an additional
annual fee of 0.05% of the plan assets (in addition to the Fiduciary Consulting Services Fee
Schedule listed above).

For retirement plan sponsors and participants, fees are billed in arrears (at the end of the billing
period) on a quarterly calendar basis and calculated based on the total market value of your
...

types of clients:

             Individuals
             High-Net-Worth Individuals
             Pension and Profit Sharing Plans
             Corporations or Business Entities

        Minimum Account Size

        There is an account minimum of $500,000 for advisory management clients and $500,000 for
        qualified plan consulting clients, which could be waived by Steffes Financial, based on the needs
        of the client and the complexity of the situation. However, Steffes Financial can continue to
        service existing accounts that have values that are below the minimum.