Urban Financial Advisory Corp

Item 5 – Fees and Compensation

UFAC is compensated for investment advisory services generally based on a percentage of the
assets under discretionary management. On occasion, a flat management fee may be negotiated
with the client, but this is usually in cases where more limited advisory services are required by
the client. Certain clients may have negotiated a reduction to the published fees based upon the
qualitative nature of the relationship. The published investment advisory fee structure includes the
provision of financial planning services necessary to maintain the investment policy for the portfolio.
Extraordinary financial planning services beyond what would be necessary to maintain the agreed
upon investment policy may require additional planning fees, which would be quoted prior to the
initiation of service delivery. For example, if the client inherited a large sum of money after having
retired for several years, this may necessitate more extensive planning than envisioned within the
original retirement plan. We would identify such situations ahead of time and alert the client of the
potential requirement for additional financial planning, which they could agree to or decline.

UFAC does not receive any commissions, loads or referral fees on any investment service or product.
Although the firm may perform due diligence or consulting on various types of financial products
such as insurance or annuities, the firm does not offer or sell any such products.

Clients either pay a quarterly investment advisory fee based upon assets under management
(between .10% (10 basis points) and .05% (5 basis points)) depending on the size of the portfolio,
generally subject to a $1,250 per quarter minimum fee, or pay a fixed quarterly fee on a pre-
negotiated basis. An initial portfolio set-up fee may also apply and is generally $1,000. UFAC
generally imposes a minimum dollar value of $1,000,000 in assets for initiating services, although in
certain circumstances this may be waived. Some clients with older investment advisory contracts
have lower rates and fees. The investment advisory fee structure is as follows:

                            Schedule of Investment Advisory Services Fees

           Discretionary Amount
           Under Management                    Annual Rate               Quarterly Billing Rate

              Minimum on first
                $3,000,000                   0.40% or $12,000               0.100% or $3,000

           Next $7,000,000 up to
               $10,000,000                        0.30%                         0.0750%

             Above $10,000,000                    0.20%                         0.0500%

The specific way the fees are charged is established in the investment advisory contract. We will
generally bill investment advisory fees in advance on a quarterly basis at the beginning of each
quarter. Fees are based on the quarter end value of the account as of the last business day of the
prior quarter. If you establish an account during a quarter, we will pro- rate the management fee
based on the number of days remaining in the quarter. You may elect to be billed directly for the
fees or, for your convenience; you may authorize us to directly debit fees from your account(s).
Where fees are directly debited from your account(s), you would still be provided with a statement
beforehand showing the calculation of the fees for that period. Upon termination of an account,
any prepaid, unearned fees would be refunded, and any earned, unpaid fees would be due
and payable.

Our investment advisory fees are exclusive of brokerage commissions, transaction fees, and other
related costs and expenses that may be incurred. For example, you may incur certain charges
imposed by custodians, brokers, and other third parties. Such fees may include transaction fees or
commissions on the purchase or sale of mutual funds or equity securities such as stocks. Other such
fees may include fees charged by fund managers or broker custodians such as 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 our investment advisory fee
and we do not receive any portion of these other commissions, fees, and costs.

Item 12 further describes the factors that UFAC 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

Our clients are generally mid-to-high net-worth individuals seeking financial planning and investment
advice from an objective source which is not affiliated with a larger institution. We service clients
located across the United States as well as several residing overseas. We may also provide
investment advisory services to other entities such as trusts, businesses such as partnerships
or limited liability companies, retirement plans, estates or charitable organizations, but generally,
such entities are related to the client who is an individual.

We have extensive experience providing comprehensive retirement planning services for employees
of BP plc and predecessor companies. This work requires detailed knowledge of BP plc’s qualified
and non-qualified retirement, savings and compensation and incentive plans. This experience also
has broad application in allowing us to deliver similar services to employees of other corporations
and partnerships.

Although there is no minimum account size necessary to engage us to provide financial planning
services, as described more fully in item 5, there are minimum investment advisory fees implying
a portfolio of at least $1,000,000, although in certain circumstances this may be waived.