Sterling Financial Planning Inc

Item 5            Fees and Compensation

    A. INVESTMENT ADVISORY SERVICES

    Sterling’s non-negotiable annual fee for discretionary or non-discretionary investment advisory
    services is based upon a percentage (%) of the market value placed under Sterling’s management as
    follows:

         Annual Fees
                        Account Value                           Account Fees
                                                      Per Quarter    Annualized
          First         $0–$500,000                   0.25%          1.00% of Market Value
          Next          $500,000–$1,000,000           0.20%              0.80% of Market Value
          Next          $1,000,000–$2,000,000         0.125%             0.50% of Market Value
          Next          $2,000,000–$5,000,000         0.10%              0.40% of Market Value
                        Over $5,000,000               0.075%             0.30% of Market Value

    Unless Sterling expressly agrees otherwise in writing, account assets consisting of cash and cash
    equivalent positions are included in the value of an account’s assets for purposes of calculating the fee.
    Clients can advise Sterling not to maintain (or to limit the amount of) cash or cash equivalent positions

    in their account. Certain clients may have accepted different pre-existing service offerings from Sterling
    and may therefore receive services under different fee schedules than as set forth above. Fees are
    adjusted for individual cash inflows and outflows in excess of $5,000 during any given quarter.

    FINANCIAL PLANNING AND CONSULTING SERVICES (STAND-ALONE)

    Sterling offers financial planning and consulting services (including investment and non-investment
    related matters, including estate planning, insurance planning, etc.) on a stand-alone fee basis. Sterling’s
    planning and consulting fees are negotiable but generally range from $2,000 to $6,000 on a fixed fee
    basis, depending upon the level and scope of the services required and the professionals providing the
    services.

    RETIREMENT PLAN CONSULTING SERVICES

    The terms and conditions of the retirement plan consulting engagement will be set forth in a Retirement
    Plan Services Agreement between Sterling and the plan sponsor. Sterling’s non-negotiable advisory fee
    for these services is equal to 0.50% of the value of retirement plan assets.

B. Clients have Sterling’s advisory fees deducted from their custodial account. Both Sterling’s Investment
   Advisory Agreement and the custodial / clearing agreement may authorize the custodian to debit the
   account for the amount of Sterling’s investment advisory fee and to directly remit that fee to Sterling
   in compliance with regulatory procedures. Sterling deducts fees quarterly in arrears, based upon the
   market value of the assets on the last business day of the previous quarter. Sterling uses its portfolio
   management system to calculate the investment advisory fees charged to clients and deducted by the
   account custodians. The values used to calculate investment advisory fees based on the market value
   of client assets may differ from the values shown on the applicable client’s custodial statement due to
   various account activities such as unsettled trades, accrued interest, and accrued dividends, which may
   not be reflected on that client’s custodial statement as of the valuation date.

C. Unless an individual client’s circumstances dictate otherwise, Sterling generally recommends that
   Charles Schwab and Co., Inc. (“Schwab”) or Fidelity Investments (“Fidelity”) serve as the broker-
   dealer/custodian for client investment management assets. Broker-dealers charge transaction fees for
   executing certain securities transactions according to their fee schedule, and they or their affiliated
   custodians also impose charges for custodial services / fees associated with maintaining the client’s
   account. Without limiting the foregoing, clients may be required to pay certain charges and
   administrative fees related to their investment advisory accounts, including, but not limited to
   transaction charges (including mark-ups and mark-downs) resulting from trades executed through or
   with a broker-dealer other than the designated broker-dealer/custodian, transfer taxes, transfer or wiring
   fees, odd lot differentials, exchange fees, interest charges, American Depositary Receipt agency
   processing fees, and any charges, taxes or other fees mandated by any federal, state or other applicable
   law or otherwise agreed to with regard to client accounts. For mutual fund and ETF purchases, clients
   will incur charges imposed by the respective fund, which represent the client’s pro rata share of the
   fund’s management fee and other fund expenses. These fees and expenses are described in each fund’s
   prospectus or other offering documents. The fees charged by the applicable broker-dealer/custodian,
   and the charges imposed by mutual funds and ETFs, are separate from and in addition to Sterling’s
   investment advisory fee described in this Item 5. Sterling does not share in any portion of those fees or
   expenses.

D. Sterling’s annual investment advisory fee is prorated and paid quarterly, in arrears, based upon the
   market value of the assets on the last business day of the previous quarter, adjusted for individual cash
   inflows and outflows in excess of $5,000. The applicable form of agreement between Sterling and the

    client will continue in effect until terminated by either party by written notice in accordance with the
    terms of such agreement. Upon termination: a pro-rated portion of the earned but unpaid advisory fee
    will be due; or Sterling will pro-rate and refund any unearned advanced advisory fees, as applicable.

E. Neither Sterling nor its supervised persons accept compensation from the sale of securities other than
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Item 7           Types of Clients

Sterling’s clients generally include individuals, high net worth individuals, pension and profit sharing plans,
trusts and estates. Sterling generally prefers to work with new clients seeking management of at least
$500,000 in investment assets to provide investment advisory services. Sterling may waive or reduce its
minimum asset requirement in its sole discretion (or reduce its advisory fee) based upon certain criteria
(e.g., anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to be
managed, related accounts, account composition, and negotiations with the client).