The Financial Consulate Inc

ITEM 5 – FEES AND COMPENSATION

FINANCIAL PLANNING SERVICES

         o Financial Physical®: $5,000

         Clients who engage the Financial Consulate for Financial Management,
         Supervision, or a combination thereof will receive a billing credit towards those
         services in the amount of the financial planning fee paid.

SPECIALTY SERVICES
         o Retirement Plan Management: Negotiated on a per plan basis

                o Participants under “Retirement Plan Management” are considered to
                  be entitled to the service offering specifically identified within the
                  plan contract and are not (without separate engagement) considered
                  clients of Personal Financial Management or Supervision. As such,
                  they are not subject to the minimum fee detailed below but are also
                  not entitled to the financial planning and other service offerings
                  described without a separate engagement. Retirement plan
                  management includes, but is not limited to: Simple IRA plans, 403(b)
                  plans, 401(k) plans (not I401(k)), and others.

         o Corporate Seminars: $200/hour.

         o General & Customized Services: $200/hour, or as quoted.

                o For engagements that fall outside of our normal scope or provided to
                  non-traditional clients, management alone may elect to offer a
                  customized engagement to fit a client’s need.

TAX & ACCOUNTING SERVICES

         o Tax Preparation: Based on complexity and determined on a return-by-return
           basis.

         o Other Tax and Accounting Services: Based on complexity, billed hourly at the
           rate of the accountant or team member doing the work. Rates begin at $30
           per hour.

PERSONAL FINANCIAL MANAGEMENT

      Managed Portfolios including Equity*

          o Active and Index-Oriented Allocation Portfolios

                     1.0% of the first $1,000,000

                     0.7% of assets over $1,000,000 to $5,000,000

                     0.5% of assets over $5,000,000

                     0.25% of assets over $25,000,000

      Managed Portfolios without Equity*
          o Income

                     0.50% of all assets

          o Short Term Cash

                     0.25% of all asset

      Separately Managed Accounts*, **

          o Equity-based strategies

                     0.50% of all assets

          o Income-based strategies

                     0.25% of all assets

      Guaranteed Withdrawal Annuities

                     0.25% of all assets

The annual financial management fee is billed quarterly at a rate of ¼ of the annual
management fee. Portfolio assets are re-valued each quarter, including accrued interest,
and 25% of the applicable annual fee percentage is then due. This fee covers
determination of client objectives, risk tolerance, present portfolio analysis, portfolio
development, portfolio monitoring, and ongoing financial planning advice. This fee is
negotiable on a client-to-client basis. The Consulate also retains discretion to modify the
fee structure in writing to the client.

New financial management clients are billed for the time remaining in the initial quarter at
the beginning of the next quarter. Thereafter, fees are payable at the beginning of each

quarter based on the account value at that time.

*Some accounts may be billed at a different rate based on other factors.

**Accounts contracted at higher rates have been reduced to the current rate. SMAs
contracted at lower rates have been grandfathered into the lower rates as of this filing.

FINANCIAL SUPERVISION

0.20% of all assets under supervision. This may be negotiated for clients with supervised
assets over $5,000,000 or significant managed assets also being billed.

MINIMUM FEE FOR ONGOING SERVICES
Clients’ fees will be calculated in accordance with the above schedules but are also subject to a
minimum annualized fee of $10,000, or the equivalent of $1,000,000 at our standard
managed rate. If a client’s quarterly fee, as calculated with the above schedules, generates
less than $2,500 per quarter in management fees, they will be charged an additional fee
(equal to the difference of their calculated fee and $2,500) in order to meet the minimum and
will be allocated pro-rata from their accounts and billed in the same manner as their other
fees. Existing clients with lower fee schedules may be grandfathered on a case-by-case basis
on the scope of work and discretion of the advisor. Any existing clients will be given proper
notification in advance and asked to sign a new contract prior to being billed.

ADDITIONAL INFORMATION REGARDING FEES AND COMPENSATION

The specific manner in which fees are charged by The Consulate is established in a client’s
written agreement with the firm. The Consulate will generally bill its fees on a quarterly
basis. Clients will be billed in advance of each calendar quarter. Clients authorize The
Consulate to directly debit fees from accounts under our management and supervision. In
some cases, clients will be billed directly for fees (when fees are not able to be debited
directly from the account). In very limited situations clients may be able to choose to be
billed directly for fees.

Management fees shall be prorated for each capital contribution and withdrawal in excess
of $15,000 or 10% of the value of the client’s assets made during the applicable calendar
quarter. Accounts initiated or terminated during a calendarquarter will be charged a
prorated fee. If the Advisory Contract is terminated by either party, advisory fees will be
refunded on a prorated basis upon notice of termination.

The Consulate’s fees are exclusive of brokerage commissions, transaction fees, and other
related costs and expenses which may be incurred by the client. Clients may incur certain
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ITEM 7 – TYPES OF CLIENTS

The Consulate may provide portfolio management services to individuals, high net worth
individuals, corporate pension and profit-sharing plans, Taft-Hartley plans, charitable
institutions, foundations, endowments, municipalities, registered mutual funds, private
investment funds, trust programs, sovereign funds, foreign funds such as UCITs and
SICAVs, and other U.S. institutions.

New clients to the firm are generally subject to a minimum annualized fee of $10,000. The
Consulate, may in its sole discretion, elect to waive or lower its minimum fee based upon
certain relationship centric considerations.

Other restrictions on clients may be imposed based on offering minimums imposed by
separate asset managers, and account types supported by technology partners for various
service offerings.