Traphagen Investment Advisors LLC

Item 5 – Fees and Compensation

Traphagen Investment Advisors, LLC negotiable annual investment advisory fee is generally based
on a percentage (%) of the market value and type of assets placed under our management or
advisement on a tiered basis as follows:

 Assets Managed                                     Annual Fee
 -0-                           to   $100,000        1.50% of assets under management
 The next $200,000             to   $300,000        1.25% of assets under management
 The next $400,000             to   $700,000        1.00% of assets under management
 The next $1,300,000           to   $2,000,000      0.75% of assets under management
 The next $8,000,000           to   $10,000,000     0.50% of assets under management
 Assets above $10,000,000                           0.40% of assets under management

This service provides for individual management of the account including the placing of orders, at
least annual investment reports and meetings as required. Fees are payable quarterly in arrears.
The fee will be based on the market value of the invested assets in the account(s) as of the last day
of each calendar quarter. The fee is equal to one fourth (1/4) the annual rate. In the event of
cancellation, the advisor will pro-rate the fee through the date of cancellation.

In computing the market value of a security in the account, each security on a national exchange shall
be valued, as of the valuation date, at the closing share price on the principal exchanged on which it
is traded. Any other security in the account shall be valued in a manner determined, in good faith,
to reflect the fair market value.

Assets invested in shares of mutual funds or other investment companies including private
investments, partnerships, and other entities will be included in calculating the value of the account
for purposes of computing the Advisor's fee and the same assets will also be subject to additional fees
and expenses, as set forth in the prospectuses of those funds, paid by the funds but ultimately borne
by the investor. Accounts using margin will have the fee calculated on the gross value of the invested
portfolio.
Fee-For-Service Financial Planning provides advice about securities, preparation of asset allocation
schedules, tax planning, estate planning, budgeting, and insurance planning. Based on the level of
service requested, we will prepare comprehensive plans or segmented plans.

Basic Fee Schedule:
Fees are based on the number of hours spent to develop and deliver the plan. Hourly rates are $150
to $475 per hour, depending on personnel involved in plan development.

Payment Schedule:
A 50% (of the estimated cost plan) good faith deposit is required at the beginning of the plan. The
balance is due and payable 48 hours from the completion of the plan, unless prior arrangements
have been made. All fees are subject to negotiation.
The specific manner in which fees are charged by Traphagen Investment Advisors LLC is established
in a client’s written agreement with Traphagen Investment Advisors LLC. Traphagen Investment
Advisors LLC will generally bill its fees on a quarterly basis in arrears each calendar quarter for
its investment management services. Clients authorize Traphagen Investment Advisors LLC to
directly debit fees from client accounts. Management fees shall not be prorated for each capital
contribution and withdrawal made during the applicable calendar quarter. Accounts initiated or
terminated during a calendar quarter will be charged a prorated fee. Upon termination of any account,
any prepaid, unearned fees will be promptly refunded, and any earned, unpaid fees will be due and
payable.
Traphagen Investment Advisors LLC’s fees are exclusive of brokerage commissions, transaction fees,
and other related costs and expenses which shall be incurred by the client. Clients may incur certain
charges imposed by custodians, brokers, third party investment and other third parties such as fees
charged by managers, custodial fees, deferred sales charges, odd-lot differentials, transfer taxes,
wire transfer and electronic fund fees, and other fees and taxes on brokerage accounts and securities
transactions. Mutual funds and exchange traded funds also charge internal management fees, which
are disclosed in a fund’s prospectus. Such charges, fees and commissions are exclusive of and in
addition to Traphagen Investment Advisors LLC’s fee, and Traphagen Investment Advisors LLC
shall not receive any portion of these commissions, fees, and costs.

Neither Traphagen Investment Advisors, LLC, nor its representatives accept compensation from the
sale of securities or other investment products.

Item 12 further describes the factors that Traphagen Investment Advisors LLC considers in
selecting or recommending broker-dealers for client transactions and determining the
reasonableness of their compensation (e.g., commissions).

Item 7 – Types of Clients

Traphagen Investment Advisors LLC provides portfolio management services to individuals, high
net worth individuals, businesses, partnerships and LLC’s, corporate pension and profit-sharing plans,
charitable institutions, foundations, endowments, trust programs, and other U.S. and international
institutions.