Summit Financial Group Inc

Item 5 – Fees and Compensation

How We Are Compensated for Our Advisory Services

We charge fees for our advisory services and those fees vary among the different types of advisory
services we offer. Summit Financial Group and your investment adviser representative may negotiate
advisory fees at our sole discretion. Your specific fees and the manner in which fees are calculated and
charged are described in your investment advisory agreement. You should carefully review the
investment advisory agreement prior to signing it.

Fees for our advisory services may be higher than fees charged by other advisers who sponsor similar
programs, or if you paid separately for investment advice and other services. You may be charged
different fees than similarly situated clients for the same services. As a result of the differences in fees and
other sources of compensation that exist among the various advisory programs and services we offer,
your investment adviser representative has a financial incentive to recommend particular programs and
services over other programs and services available through our firm. You should carefully review this

brochure to understand the fees and other sources of compensation that exist among our programs and
services prior to entering into an investment advisory contract with our firm.

Financial Planning and Consulting

Fees for financial planning services are set at a flat or hourly rate and are payable as services are rendered
or upon completion of services and delivery of the evaluation agreed upon by you and your investment
adviser representative.

Fees for consulting services are set at a flat or hourly rate and are payable either quarterly, semi-annually
or annually in arrears within 30 days after receiving an invoice for the consulting services.
In the event your financial planning or consulting agreement is terminated and the fee is not calculated
on an hourly basis, the fee will be prorated based on the services provided through the date of
termination.
Factors your investment adviser representative considers when determining your fee include, but are not
limited to:
    •   The amount of time he or she expects to spend completing the financial planning or consulting
        services and providing related advice;
    •   The complexity of your goals, issues and/or needs;
    •   The extensiveness and complexity of the data needed regarding your personal financial
        information, such as your income, expenses, assets and liabilities;
    •   Your net worth or the value of your investment accounts and/or other assets that are the subject
        of the financial planning or consulting services; and/or
    •   Special circumstances related to life change, marital status, health or special income needs, or
        growth or decline of a personal business.
You may engage your investment adviser representative for additional advisory services offered by
Summit Financial Group, or an affiliate, and/or brokerage services in his or her capacity as a registered
representative of Cetera Advisor Networks LLC, to assist you with implementing one or more
recommendations. You will incur additional fees and/or charges for purchasing a product or service
recommended by your investment adviser representative to implement a financial plan. Such charges and
fees are exclusive of and in addition to the fee you pay Summit Financial Group and your investment
adviser representative for financial planning or consulting services. You have complete freedom in
selecting an investment adviser or broker-dealer to assist you with implementing the recommendations
made by your investment adviser representative and are under no obligation to act upon advice provided
by your investment adviser representative.
Portfolio Management

Fees for portfolio management services are based on assets under management and are payable quarterly
in advance. Maximum fees for our advisory programs are outlined below. Graduated fee schedules vary
by program. Accounts opened on the Wells Fargo platform prior to June 9, 2017 may be subject to a
different fee rate. You should refer to your advisory agreement for your specific fee rate(s). Please also see
the Wells Fargo Advisors (WFA) Wrap Fee Brochure for a description of the services and additional fee
information applicable to program accounts.

                                     Programs on the Wells Fargo Platform
                                                                                                 Bundled or
 Program                   Program Type          Maximum Annual Advisory Fee
                                                                                                 Unbundled
                           Unified Managed
 Personalized UMA                                2.50%                                           Bundled
                           Account
                           Separately Managed
 Private Advisor Network                         2.05%                                           Bundled
                           Account
                                                 $0 - $249,999: 1.75%
                           Mutual Fund
 CustomChoice                                    $250,000 - $999,999: 1.50%                      Bundled
                           Advisory Program
                                                 Over $1,000,000: 1.15%
                           Mutual Fund           Foundations Model Series: 2.0%
 FundSource®                                                                                     Bundled
                           Advisory Program      All Other Series: 2.0%
                                                 $0 - $249,999: 3%
                           Adviser-Directed
 Asset Advisor                                   $250,000 - $999,999: 2.50%                      Bundled
                           Program
...

Item 7 – Types of Clients

Summit Financial Group offers investment advisory services to individuals, pension, profit sharing
and other employer sponsored plans, corporations and other business entities. The requirements for
opening an account vary by the type of account you maintain and the program you select. Minimum
investments may be waived at our sole discretion. For example, we may consider account values for
your minor children, spouse and other types of related accounts in an effort to meet the stated
minimum.
The minimum investment required for our programs are as follows:

                                         Programs on Wells Fargo Platform
 Program Series
 Personalized UMA

 Personalized UMA Multi Strategy
                                                                $200,000 or portfolio minimum
   •   Optimal Blend
                                                                $10,000 subject to investment minimum
   •   Custom Blend

 Personalized UMA Single Strategy
                                                                $50,000 subject to Manager’s minimum
   •   SMA Strategies
   •   Allocation Advisors Strategies
     •    Strategic ETF, Morningstar Strategic ETF,             $25,000
          Morningstar ETF, Laffer Global Portfolio, Laffer
          Dynamic U.S. Inflation Portfolio and Active/Passive
          Portfolio
     •    CAAP Plus and Tactical ETF                            $50,000

   •   Wells Fargo Compass Asset Allocation strategies
                                                                $150,000
         •    Aggressive Growth
                                                                $250,000
         •    All Other Strategies

   •   Masters                                                  $100,000 (subject to manager minimums)

 FundSource
                                                                $10,000
    •   Foundations Model Series
                                                                $25,000
    •   All other Series

 CustomChoice                                                   $50,000
 Private Advisors Network                                       $100,000 (subject to manager minimums)
 Asset Advisor                                                  $25,000
 Private Investment Management                                $50,000
 MAP                                                          $10,000
 VIP                                                          $10,000
                                          Programs on Pershing Platform
 Program Series                                               Minimum Initial Investment

 AIM and AIM Plus                                                 $25,000
 Elite and Elite Plus                                             $50,000
 Envestnet:
     •   Separate Accounts                                        $100,000 - $250,000 per manager
                                                                  $250,000 (minimums for select asset managers may
     •   Multi-Manager Account
                                                                  be higher)
        •    Advisor as Portfolio Manager
                                                                  $10,000
        •    MF/ETF program
                                                                  $250,000
        •    Unified Managed Account                              $150,000 per model allocation
        •    Multi-manager program                                $25,000 - $100,000 (varies by model strategy)
 Lockwood
     •  Separately Managed Accounts                               $100,000 per manager
     •  AdvisorFlex Portfolios                                    $50,000
     •  Investment Strategies                                     $250,000
     •  Asset Allocation Portfolios                               $50,000
 MAP                                                             $10,000
 VIP                                                             $10,000
                                              Programs on Other Platforms
 Program Series                                                  Minimum Initial Investment
 Investment Management Program                                   $10,000
 Summit Foliofn Portfolio                                        $10,000

Please refer to Cetera Advisory Services’ Form ADV Brochure for the minimum investments required for
the My Advice Architect Program.

                                        Fiduciary Services for ERISA Participants
 Program Series                                                Minimum Initial Investment
 ERISA Participant Advice Program                              $25,000