T Rowe Price Advisory Services Inc

Item 5: Fees and Compensation

TRP Advisory Services charges an ongoing annual advisory fee assessed on the value of assets in the client’s
Managed Account (an “asset-based fee”) for the Discretionary Management portion of this Service. TRP Advisory
Services does not charge a separate or additional advisory fee for the Planning portion of the Service. As
discussed in more detail below, other disclosed fees and expenses are applicable in connection with the
Service, including the fees and expenses of the underlying Price Funds recommended to clients.

With respect to the Discretionary Management portion of this Service, we charge a gross advisory fee, which
will be reduced by the amount of the total annual fund operating expenses (after any fee waivers and expense
reimbursements) (Net Expense Ratio) for the Service Funds held in the Managed Accounts, resulting in a net
advisory fee to the client. The Net Expense Ratio used to offset our gross advisory fee is the Net Expense
Ratio shown in the fund’s prospectus. The annual gross advisory fee for the Service is up to 0.90% of assets
under management and assessed on the value of the Service Funds in the client’s Managed Account. The gross
advisory fee will be specified in the fee schedule of the Client Agreement and Discretionary Management
Supplement and may vary by product type or model portfolio. TRP Advisory Services may reduce the gross
advisory fee upon written notice to clients. TRP Advisory Services will offset the gross advisory fee in the
amount of the Net Expense Ratio of the Service Funds held in a client’s Managed Account up to the amount of
the gross advisory fee. TPR Advisory Services is not required to offset more than the amount of the gross advisory
fee for any given account. The gross advisory fee less the amount of the offset is called the net advisory fee.
The estimated annual net advisory fee for each model portfolio of the Service using all Primary Funds with
their strategic or “neutral” weights as of the date of this brochure is set forth below, but the actual net advisory
fee for a Managed Account could be more or less depending on the specific Service Funds held in the
account and their allocations and Net Expense Ratios, and could vary from billing period to billing period.

 Model Portfolio           100/0     90/10      80/20   70/30     60/40   50/50    40/60    30/70     20/80    10/90
 Equity/Fixed Income
 Allocation
 Estimated Net Advisory    0.43%    0.47%      0.48%    0.49%     0.50%   0.51%    0.54%    0.54%    0.56%     0.53%
 Fee

For purposes of calculating our net advisory fee, only Service Funds with the exception of Service Money Funds,
will be considered billable assets. All other assets held in an account, such as assets transferred in-kind to be
liquidated and fund the account, will be considered non-billable assets. This means that we will only charge our
advisory fee on Service Funds held in the client’s account. Net Expense Ratios, including management fees, for the
Price Funds used in the Service are disclosed in each Price Fund’s prospectus. Net Expense Ratios of the Service
Funds will change over time and therefore the net advisory fee will change over time.

The example below illustrates the net advisory fee calculation but does not necessarily reflect the specific fees
attributable to a specific Managed Account, which may be more or less than this illustration depending on the
Recommended Portfolio, specific Service Funds held in an account and their allocations and Net Expense Ratios:

            Net Advisory Fee         =       Gross Advisory Fee     –          Service Fund Offset
                 0.50%                             0.90%                               0.40%
                                                                           (Total Annual Fund Operating
                                                                                Expenses After Fee
                                                                          Waiver/Expense Reimbursement
                                                                                 of Service Funds)

The advisory fee for the Service is assessed on the average daily balance of Service Funds held in a Managed
Account and is paid on a monthly basis, in arrears. The initial billing period for a Managed Account begins upon
commencement of trading in the account. The net advisory fee will automatically be deducted from the client’s
Managed Account (each underlying registration/account to bear its own costs) monthly, in arrears. The dollar
amount of the net advisory fee paid for the prior monthly billing period for each underlying account will be shown in
the monthly Managed Account statements. If either TRP Advisory Services or the client terminates the client’s
participation in the Service or a Managed Account, a pro-rated advisory fee from the beginning of the applicable
billing period through the date of termination will be charged to the client’s Managed Account. Our advisory fees are

not negotiable by clients. TRP Advisory Services may waive or reduce advisory fees from time to time in its sole
discretion for certain clients, including without limitation, former clients of advisory services decommissioned by
TRP Advisory Services. This could result in certain clients paying less than the standard fee rate. Any such fee
waivers or discounts are not generally available to all clients of TRP Advisory Services. No waiver or reduction of
the standard fee rate for any client shall entitle any other client to such waiver or reduction.

The managed portfolio has an allocation in cash or cash equivalents that will be held in a Service Money Fund in a
sweep account held at TRP Investment Services and from which the Managed Account’s advisory fees are
expected to be deducted. Cash levels may vary from account to account within the Discretionary Management
...

Item 7: Types of Clients

The Planning portion of the Service is designed for individual investors and households whose investment goals
include retirement objectives and generally requires a minimum of $250,000 in aggregate investable assets at or
under consideration to move to T. Rowe Price. Clients who are enrolled in the Discretionary Management portion of
the Service and who are in or near retirement are generally eligible for a Retirement Income Plan. The
Discretionary Management portion of the Service requires an initial minimum investment of $250,000 per
household. We reserve the right to waive the minimum planning or investment amount from time to time in our sole
discretion. The Service is generally available for individual investors who reside in the U.S. and certain U.S.
territories. The Service is designed for longer term investing through retirement. The Discretionary Management
portion of the Service is not designed for market timing, tactical or short-term investing by clients or as a cash
management vehicle for clients. The following types of accounts owned by the client and/or co-client are generally
eligible for inclusion in the Discretionary Management portion of the Service: Individual, Joint Tenants, Joint
Tenants with Right of Survivorship, Transfer on Death (TOD), Traditional IRA, Roth IRA, Rollover IRA, Roth
Rollover IRA, Inherited IRA, Inherited Roth IRA, and revocable trust accounts where one or both of the client and
co-client are the only trustees and the trust is for the benefit of the client and/or co-client. We allow Managed
Accounts with powers of attorney on such accounts under certain conditions. TRP Advisory Services does not and
will not take discretion over workplace retirement plan accounts, and does not and will not render fund selection
advice with the intent or understanding that such advice will be used by clients as the primary basis for selecting
funds within such accounts.