Valley Financial Management Inc

Item 5 – Fees and Compensation

When you open an Account in the VDI Platform you agree to pay fees described further herein.

The assets in VFM accounts are managed pursuant to VFM’s automated investment service and
are assessed annual asset-based advisory account fees (the “Advisory Fee”) of fifty basis points
(0.50%). Fees are not negotiable.

The Advisory Fee will be computed and payable quarterly in advance based upon the average
daily market value of all assets (including cash or cash equivalents) held in the Account for the
quarter. Advisory Fees for partial billing periods upon the inception or termination of an Account
will be prorated. For any account that terminates within a quarter, the prorated unearned portion
of the Advisory Fee will be returned to the Client.

Clients are required to authorize VFM and the Custodian to directly debit the Advisory Fee from
the Client’s Account by withdrawing funds from the Account. If the cash balances in the Account
are not sufficient to pay the entire Advisory Fee, VFM will sell securities in the Account, beginning
with those that are then most over weighted in dollar value compared to the target asset
allocations in a client’s selected portfolio. Selling securities to pay the Advisory Fee and additional
fees (described below) may have tax consequences.

There are other fees that clients may be charged by other parties. As a wrap fee, the Advisory
Fee covers all trading and advisory charges for each Account as part of the Valley Digital Investor
Program. However, our fees do not include other related costs and expenses. The ETFs
recommended by VFM have fees that are distinct and separate from the fees paid to VFM for its
wrap fee program. Clients may also incur certain charges imposed by Valley National Bank in
connection with any money movements the client conducts out of his or her Valley National Bank
account. This would include, for example, a wire transfer fee. Clients may also pay fees to
Pershing (exclusive of trading fees, which are covered by the wrap fee) as identified in the
brokerage account agreement. For more information, please see the Wrap Fee Brochure.

Item 7 – Types of Clients

VFM clients are individual investors, including high-net-worth individuals. The minimum balance
needed to establish an Account is $1,000. Further, a client-initiated liquidation event that takes
an account balance below the $1,000 minimum will trigger a full liquidation of the portfolio to cash
and a distribution to the linked Valley Bank Account and a termination of the advisory relationship.

If the VFM Account balance falls below $1,000 solely due to market conditions and with no client-
initiated liquidation, the Account will remain in good standing, and the portfolio will not be
liquidated.

VFM is a software-based financial advisor that requires clients to acknowledge their ability and
willingness to conduct their relationship with VFM on an electronic basis. Under the terms of the
Digital Investment Advisory Agreement (“Advisory Agreement”), each client agrees to receive all
Account information and Account documents, including statements and confirmations (and this
Brochure), and any updates or changes to same, through access to the VDI Platform and VFM’s
electronic communications. Unless noted otherwise on the VDI Platform or within this Brochure,
VFM’s advisory services, the signature of the Advisory Agreement, and all documentation related
to the Program are managed electronically.

Clients are required to open a bank account with Valley National Bank (“Valley Bank Account”).
The Valley Bank Account will serve as the funding account to the Account and is the only account
to and from which funds may be transferred for the Account.