Trotta John NMN

Item 5 – Fees and Compensation

Investment Supervisory Service Fee Schedule:

       Assets Under Management                    Annual Rate

       On the first $250,000                      1.25%
       On the next $750,000                       0.90%
       On the next $1,000,000                     0.75%
       Over $2,000,000                            0.50%

Fees are charged in advance covering a four month period…… January-April billed in
January, May-August billed in May, and September-December billed in September. Fees are
based on the value of the account(s)as of the last day of the period (i.e. January Billing
based on December 31 balance, May Billing based on April 30 balance, etc.). Clients
authorize Adviser to directly debit fees from their accounts. Management fees shall be
prorated for each capital contribution and withdrawal made during the applicable period.
Accounts initiated or terminated during a calendar period will be charged a prorated fee.
Upon termination of any account, any fees that are charged but unearned will be credited
to the account.

Financial Advisor Network, Inc. treats cash as an asset class. As such, unless otherwise
agreed in writing, all cash and cash equivalent positions (e.g., money market funds, etc.) are
included as part of a client’s assets under management for purposes of calculating Adviser’s
asset-based fees. At any specific point in time, depending upon perceived or anticipated
market conditions/events (there being no guarantee that such anticipated market
conditions/events will occur), Financial Advisor Network, Inc. may maintain cash and/or
cash equivalent positions for defensive, liquidity, or other purposes. While assets are
maintained in cash and/or cash equivalents, such amounts could miss market advances
and, at any point in time, Adviser’s fee could exceed the interest paid by the client’s money
market fund.

Adviser’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 Adviser’s fee, and Adviser shall not
receive any portion of these commissions, fees, and costs.

Other Service Fees – charged at the rate of $300 per hour, payable upon completion of
services.

All Adviser fees are subject to negotiation based on various variables such as length of
relationship, professional performing services, etc. because of this, similarly situated
clients may be subject to different fees.

Item 7 – Types of Clients

Adviser provides portfolio management services to individuals and high net worth
individuals. The minimum account level required to open an account is $250,000 per
household.