Avondale Wealth Management LLC

ITEM 5:         FEES AND COMPENSATION

MANAGEMENT FEES FOR FINANCIAL PLANNING AND PORTFOLIO MANAGEMENT
SERVICES
In the event the Client determines to engage Avondale to provide Financial Planning and Portfolio
Management Services, Avondale shall do so on a fee basis. If engaged, Avondale shall charge an annual
fee based upon a percentage of the market value of the assets being managed by Avondale. The specific
manner in which fees are charged is established in the Client’s Agreement with Avondale.

As described in further detail below, Avondale’s annual fee is exclusive of, and in addition to transaction
fees and other related expenses by third parties, which shall be incurred by the Client. Note that Avondale
shall not receive any portion of these charges or fees.

Investment Portfolio Fees:

Avondale’s annual fee shall be prorated and charged quarterly, in advance, based upon the market value
of the assets on the last day of the previous quarter. The annual fee shall vary (between 0.30% and 1.50%)
depending upon the market value of the assets under management and the type of Financial Planning and
Portfolio Management Services to be rendered, as follows:

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                                  Investment Portfolio
                       PORTFOLIO VALUE ANNUAL FEE SCHEDULE

                                   First $500,000                  1.50%
                                  Next $1,000,000                  1.25%
                                  Next $3,500,000                  1.00%
                                  Next $5,000,000                  0.65%
                                Above $10,000,000                  0.30%

There is a suggested portfolio minimum of $1,000,000 for the standard service offering at Avondale,
though Avondale management can waive this minimum in certain circumstances. Annual fees will be
deducted from the Client Account by the Custodian. The amount due is calculated by applying the quarterly
rate (annual rate divided by 4) to the total assets under management with Avondale at the end of each
quarter. Clients will be provided with a statement, at least quarterly, from the Custodian reflecting
deduction of the Investment Advisory Fee. Clients provide written authorization permitting Avondale to be
paid directly from their accounts held by the Custodian as part of the Financial Planning and Portfolio
Management Agreement and separate account forms provided by the Custodian.

For the initial quarter of Financial Planning and Portfolio Management Services, the first quarter’s fees shall
be calculated on a pro rata basis. We fee deduct from each managed account, unless there is a specific
request to bill from a separate Avondale account. The Agreement between Avondale and the Client will
continue in effect until terminated by either party pursuant to the terms of the Agreement. Avondale’s
annual fee shall be prorated through the date of termination and any remaining balance shall be refunded to
the Client, as appropriate, in a timely manner. Notwithstanding the above, all fees are negotiable and
certain clients may be charged less, depending upon a number of factors, including portfolio size,
employment and relationship to Avondale.

ASSET ADDITIONS AND WITHDRAWALS
The Client may make additions to and withdrawals from the account at any time. For additions greater
than $100,000 deposited into an account after the inception of a quarter, the fee payable with respect to
such assets will be prorated based on the number of days remaining in the quarter. Additions may be in
cash or securities provided that Avondale reserves the right to liquidate any transferred securities or
decline to accept particular securities into a Client’s account. Avondale consults with its Clients about the
options and ramifications of transferring securities. However, Clients are advised that when transferred
securities are liquidated, they are subject to transaction fees, fees assessed at the mutual fund level (i.e.
contingent deferred sales charge) and/or tax ramifications.

Clients may withdraw account assets, subject to the usual and customary securities settlement procedures
and reasonable notice to Avondale. For partial withdrawals over $100,000 within a billing period, we
shall calculate the fee paid with respect to such assets, prorated based on the number of days remaining in
the quarter. These calculated unearned fees will be credited towards the next quarter’s fee. However,
Avondale designs its portfolios as long-term investments and asset withdrawals may impair the
achievement of a Client’s investment objectives.

For partial withdrawals purposed for the purchase of commissionable products through our broker/dealer
or General Insurance Agent, within a billing period, regardless of the amount of the withdrawal, we shall

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calculate the fee paid with respect to such assets, prorated based on the number of days remaining in the
quarter. These calculated unearned fees will be credited towards the next quarter’s fee.

In certain circumstances, a one time-financial plan can be provided for a fixed fee range between $500.00
- $5,000.00 based upon complexity and time spent on research and preparation. The specific manner in
which fees are charged is established in the Client’s Agreement with Avondale.

Performance Fees:

The performance fee payable to Avondale shall be an amount up to 10% per annum of the of the Net Excess
Appreciation for the monies and Securities in the Account, on an annual basis (the “Performance Fee”),
provided that the Performance Fee for any year will be charged only if the Net Excess Appreciation
applicable to the Securities in the Account exceeds the “high water mark” per year. For purposes of this
...

ITEM 7:         TYPES OF CLIENTS

Avondale will provide advisory services to various types of Clients, including:

    •   Individuals: Avondale provides Financial Planning and Portfolio Management Services. This
        may include trust accounts and family partnerships.
    •   High Net Worth Individuals: Avondale provides Financial Planning and Portfolio Management
        Services. This may include trust accounts and family partnerships.
    •   Businesses and Non-Profits: Occasionally, Avondale will provide advisory services to
        businesses and non-profits seeking Financial Planning and Portfolio Management Services for
        their organization’s interests.

PORTFOLIO MINIMUMS
There is a suggested portfolio minimum of $1,000,000 for the standard service offering at Avondale,
though Avondale management can waive this minimum in certain circumstances. Clients who establish a
portfolio of $10,000,000, or greater, qualify for Avondale’s EPOCH service. If at any time in the EPOCH
relationship the portfolio balance falls below $5,000,000, the client will be required to sign a new
Financial Planning and Portfolio Management Agreement and move to the standard service offering.