Wealth Management of the Bluegrass LLC

Fees and Compensation

The following types of fees will be assessed:

Asset Management – Fees are charged in advance on a monthly basis and are based primarily
on asset size and the level of complexity of the services provided. In individual cases, Wealth
Management of the Bluegrass, LLC has the sole discretion to negotiate fees that are lower than
the standard calculated tiered fee shown or to waive fees. Fees are not based on the share of
capital gains or capital appreciation of the funds or any portion of the funds. Comparable
services for lower fees may be available from other sources. Fees for the initial month will be
prorated based upon the number of calendar days in the calendar month that the advisory
agreement is in effect. Fees are based on the closing market value of the assets on the last
business day of the previous month. Annual fees range from .30% - 1.00% depending on the
amount of assets under management (“AUM”) – See chart below. Fees may also be charged as a
flat percentage rather than varying each month based on the value of assets at the end of each
month. Consulting services are included in the fees for asset management services.

Fee Schedule for Asset Management:

   Total Account Value                                Maximum Annual Advisory Fee

  Under $1,000,000                                                1.00%
  Next Million                                                    0.90%
  Next Million                                                    0.80%
  Next Million                                                    0.70%
  Next Million                                                    0.60%
  Next $5 Million                                                 0.50%
  Next $10 Million                                                0.40%
  Over $20 Million                                                0.30%

As authorized in the client agreement, the account custodian withdraws Wealth Management of
the Bluegrass, LLC’s advisory fees directly from the clients’ accounts according to the
custodian’s policies, practices, and procedures. The custodial statement includes the amount of
any fees paid to Wealth Management of the Bluegrass, LLC for advisory services. You should
carefully review the statement from your custodian/broker-dealer’s statement and verify the

calculation of fees. Your custodian/broker-dealer does not verify the accuracy of fee
calculations.

Fees are charged in advance on a monthly basis, meaning that advisory fees for a month are
charged on the first day of the month. Clients may terminate investment advisory services
obtained from Wealth Management of the Bluegrass, LLC, without penalty, upon written notice
within five (5) business days after entering into the advisory agreement with Wealth
Management of the Bluegrass, LLC. The client is responsible for any fees and charges incurred
by the client from third parties as a result of maintaining the account such as transaction fees for
any securities transactions executed and account maintenance or custodial fees. Thereafter, the
client may terminate advisory services upon written notice delivered to and received by Wealth
Management of the Bluegrass, LLC. Clients who terminate investment advisory services during
a quarter are charged a prorated advisory fee based on the date of Wealth Management of the
Bluegrass, LLC’s receipt of client’s written notice to terminate. Any unearned fees paid in
advance will be refunded immediately by contacting Jason Gresham at (859) 420-4838.

Wealth Management of the Bluegrass, LLC also provides 401(k) ERISA and Pension Plan
Consulting. Fees for our service are based on assets under management and are deducted from
total plan assets by the plan administrator. In addition, Wealth Management of the Bluegrass,
LLC provides Investment Advisory Services for Annuity and Insurance contracts. These
contracts are held away, and fees may be variable or fixed, and are based on assets under
management. Advisory fees will not exceed our maximum standard advisory fee provided in the
chart above.

Additional Fees and Expenses

In addition to advisory fees paid to Wealth Management of the Bluegrass, LLC as explained
above, clients may pay custodial service, account maintenance, transaction, and other fees
associated with maintaining the account. These fees vary by broker and/or custodian. Clients
should ask Wealth Management of the Bluegrass, LLC for details on transaction fees or other
custodial fees specific to their account, as these fees are not included in the annual advisory fee.
Wealth Management of the Bluegrass, LLC does not share any portion of such fees.
Additionally, for any mutual funds purchased, the client may pay their proportionate share of the
funds’ distribution, internal management, investment advisory and administrative fees. Such
fees are not shared with Wealth Management of the Bluegrass, LLC and are compensation to the
fund manager. Clients are urged to read the mutual fund prospectus prior to investing.

Mutual fund companies impose internal fees and expenses on clients. These fees are in addition
to the costs associated with the investment advisory services as described above. Complete
details of such internal expenses are specified and disclosed in each mutual fund company’s
prospectus. Clients are strongly advised to review the prospectus(es) prior to investing in such
securities.

Mutual funds purchased or sold in broker-dealer accounts may generate transaction fees that
would not exist if the purchase or sale were made directly with the mutual fund company.
Mutual funds held in broker-dealer accounts also charge management fees. These mutual fund

management fees may be more or less than the mutual fund management fees charged if the
client held the mutual fund directly with the mutual fund company.

Clients may purchase shares of mutual funds directly from the mutual fund issuer, its principal
...

Types of Clients

Wealth Management of the Bluegrass, LLC offers investment advisory services to individuals,
high net individuals, trusts, corporations and state government agencies. There is no minimum
account size to open and maintain an advisory account. Additionally, Wealth Management of
the Bluegrass, LLC provides investment advisory services to held away insurance and annuity
contracts at various carriers. Wealth Management of the Bluegrass, LLC also provides 401(k) /
Pension Plan consulting.

Form ADV, Part 2A, Item 8

       Methods of Analysis, Investment Strategies, and Risk of Loss

Wealth Management of the Bluegrass, LLC’s methods of analysis and investment strategies
incorporate the client’s needs and investment objectives, time horizon, and risk tolerance.
Wealth Management of the Bluegrass, LLC is not bound to a specific investment strategy for the

management of investment portfolios, but rather consider the risk tolerance levels pre-
determined gathered at the account opening, as well as on an on-going basis. Examples of
methodologies that our investment strategies may incorporate include:

Asset Allocation – Asset Allocation is a broad term used to define the process of selecting a mix
of asset classes and the efficient allocation of capital to those assets by matching rates of return
to a specified and quantifiable tolerance for risk.

Dollar-Cost Averaging – Dollar-cost averaging is the technique of buying a fixed dollar amount
of securities at regularly scheduled intervals, regardless of the price per share. This will
gradually, over time, decrease the average share price of the security. Dollar-cost averaging
lessens the risk of investing a large amount in a single investment at the wrong time.

Technical Analysis – involves studying past price patterns and trends in the financial markets to
predict the direction of both the overall market and specific stocks.

Long-Term Purchases – securities purchased with the expectation that the value of those
securities will grow over a relatively long period of time, generally greater than one year.

Short-Term Purchases – securities purchased with the expectation that they will be sold within a
relatively short period of time, generally less than one year, to take advantage of the securities’
short term price fluctuations.

Our strategies and investments may have unique and significant tax implications. Regardless of
your account size or other factors, we strongly recommend that you continuously consult with a
tax professional prior to and throughout the investing of your assets.

Investing in securities involves risk of loss that clients should be prepared to bear. Although we
manage your portfolio with strategies and in a manner consistent with your risk tolerances, there
can be no guarantee that our efforts will be successful. You should be prepared to bear the risk
of loss.

All investments involve the risk of loss, including (among other things) loss of principal, a
reduction in earnings (including interest, dividends, and other distributions), and the loss of
future earnings. These risks include market risk, interest rate risk, issuer risk, and general
economic risk. Regardless of the methods of analysis or strategies suggested for your particular
investment goals, you should carefully consider these risks, as they all bear risks.

Form ADV, Part 2A, Item 9