Stolz & Associates PS

Item 5: Fees and Compensation

This item describes the fees we charge for our advisory services and how our fees are
calculated and paid.

Investment Advisory Services

Wealth Management Fees
For wealth management services, clients pay fees based on a percentage of their assets under
management, by household. As disclosed in the client’s engagement letter, the maximum fee
schedule is below.

                     PERCENTAGE OF ASSETS UNDER MANAGEMENT*
                Household Assets Under Management Maximum Annual Fee
                         $0 to $1,000,000               1.25%
                     $1,000,001 to $2,500,000           1.00%
                     $2,500,001 to $5,000,000           0.40%
                      $5,000,001 and above              0.20%

Our maximum fees (above) are negotiable under appropriate circumstances and as a result, not
all clients pay the same fee. When we negotiate fees, we may consider factors such as the fees
that our client has paid to a competitor for similar services, the totality of our relationship with
the client, the potential for future business and the complexity of the client’s investment
strategy.

Retirement Plan Consulting
For retirement plan consulting, we charge an annual fee of 0.75% to 1.00% of the total plan assets.
Fees are paid quarterly in advance or arrears and paid by either the Plan Sponsor or Plan
Participants. The type and amount of the fees charged are negotiable and are generally based on
the size and complexity of the plan, the number of Plan Participants, the location of the
Participants, the estimated number of meetings required, and other factors that may be deemed
relevant by us when negotiating with the client.

Calculation and Payment

Fees for Our Advisory Services
Fees that are billed quarterly in advance are based on the value of each client’s household assets
on the last trading day of the previous quarter. Fees billed in arrears are based on the average
daily balance of the accounts.

Each client provides us with the authorization for the direct debit of our fee and other applicable
fees and charges (primarily transaction charges) from their account when an account is first

established. Statements are provided at least quarterly by each account’s custodian that
indicate all disbursements, including advisory fees paid to us.

Fees for accounts that are maintained for less than a full billing period will be prorated. Fees that
are collected in advance will be prorated and returned, without interest, if an account is
terminated before the billing period ends.

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
       (give loyal advice);
   •   avoid misleading statements about conflicts of interest, fees, and investments;
   •   follow policies and procedures designed to ensure that we give advice that is in our
       clients’ best interests;

   •    charge no more than a reasonable fee for our services; and
   •    give clients basic information about conflicts of interest.

Many employers permit former employees to keep their retirement assets in their company
plan. Also, current employees can sometimes move assets out of their company plan before
they retire or change jobs. In determining whether to complete the rollover to an IRA, and to
the extent the following options are available, clients should consider the costs and benefits of
a rollover. Note that an employee will typically have four options in this situation:

   1.   leaving the funds in the employer’s (former employer’s) plan;
   2.   moving the funds to a new employer’s retirement plan;
...

Types of Clients
   • We provide services to: Individuals, including high net worth individuals;
   • Pension and profit-sharing plans; and
   • Trusts, Estates or Charitable organizations.

Account Minimums
We do not have minimum requirements for opening and maintaining accounts or otherwise
engaging us, unless otherwise specified by the account custodian.