This firm offers discretionarily managed accounts for a percentage of assets under management, inclusive of commission and handling charges. A program offering advisory services that is inclusive of transaction charges is referred to as a wrap fee program. A program offering similar services but exclusive of transaction charges is referred to as a non-wrap fee program. The fee structure for our wrap fee accounts is detailed below. Fee Structures for Managed Accounts We charge an annual advisory fee of 1.00% on assets. However, based on the type of assets in a client’s account, size of the account or other factors, fees charged may be less. As the portfolio manager and sponsor of the program, we will receive the advisory fee as payment. Our fees are charged quarterly, in advance. In any partial calendar quarter, the management fee will be pro-rated based on the number of days that the Account was open during the quarter. We believe the charges and fees offered within our fee-based program are competitive with alternative programs available through other firms and/or investment sources. We make no guarantee that the aggregate cost of our program is lower than programs available elsewhere. Client understands that Account assets invested in shares of mutual funds or other investment companies (“funds”) will be included for the purpose of calculating the value of the Account for purposes of computing our fee and that the same assets will also be subject to other fees as set forth in the prospectus of those funds, which fees will be paid by the funds but ultimately borne by the investor. The total cost of each of the services provided, if purchased separately, could be more or less than the costs of each respective program. Cost factors may include your ability to obtain the services provided within the programs separately with respect to the selection of investments, invest and rebalance the selected investments without the payment of a sales charge, and obtain performance reporting comparable to those provided within each program. When making cost comparisons, you should be aware that the combination of multiple mutual fund investments, advisory services, custodial and brokerage services available through each program may not be available separately or may require multiple accounts, documentation and fees. If an account is actively traded or if you otherwise may not qualify for reduced sales charges for fund purchases, the fees may be less expensive than

separately paying the sales charges and advisory fees. If an account is not actively traded or if you otherwise would qualify for reduced sales charges, the fees in these programs may be more expensive than if utilized separately. You should also understand that the shares of certain mutual funds offered in these programs may impose short-term trading charges (typically 1%-2% of the amount originally invested) for redemptions generally made within short periods of time. These short-term charges are imposed by the Funds to deter “market timers” who trade actively in fund shares. These charges, as well as operating expenses and management fees, which may increase the overall cost to the client by 1%-2% (or more), are available in each fund’s prospectus. Such charges are not paid to Adviser but are retained by the fund company. You may also incur charges for other account services provided by the custodian not directly related to the execution and clearing of transactions. These fees may include IRA custodial fees, safekeeping fees, interest charges on margin loans and wire fees. Transaction costs (brokerage commissions and handling fees only) will be paid for clients by Adviser, except in the following two circumstances: 1) Adviser reserves the right to pass commission and handling costs through to an existing client if client makes three or more unsolicited trades within a 30 day period. 2) In any unsolicited liquidation of one or more positions by a client who is in the process of closing out their account with the Adviser, client pays transaction charges. Client may incur other account closing charges incurred by the Custodian. However, Advisor will not charge account closing fees. Termination There is no minimum term associated with an Investment Advisory Management Agreement with Advisor. The Investment Management Advisory Agreement may be terminated by either of us at any time upon providing written notice pursuant to the provisions of the Investment Advisory Management Agreement. There is no penalty for terminating your account. Upon termination, you will receive a refund of the portion of the prepaid asset-based fee which is not utilized. For the purpose of calculating your refund, the management fee will be pro-rated based on the number of days remaining in the current calendar quarter. We will not accept instructions to terminate the Investment Advisory Management Agreement unless you provide these instructions in writing.