AWR Investment Management LLC

ITEM 5: FEES AND COMPENSATION
Advisory Fees & Billing Practices

Fees for investment management services are calculated as a percentage of assets under management.
These fees are billed quarterly in arrears, based on the assets under management as of the last day of the
calendar quarter. Our standard fee schedule is:

                Assets under Management                                 Annual Fee
                On the first $250,000                                     1.50%
                On amounts from $250,001 to $1,500,000                    1.00%
                On amounts from $1,500,001 to $3,000,000                  0.75%
                On amounts over $3,000,000                                0.50%

                Minimum quarterly fee: $375

We may negotiate a discounted fee for clients based on total assets under management, relationship with
principals of AWR, and if they were directed or referred to us from CPA firms or other professionals.
Financial planning services are included in the above fees.

You may provide authorization for us to deduct our fees directly from your investment account.
Important information about the deduction of management fees:

       You must provide authorization for us to pull fees by initialing the appropriate section of our
        contract.

       You will receive a statement from your custodian which shows your holdings.

       You are responsible for reviewing the accuracy of the fees being billed, as the custodian will not
        do so.

You may elect to pay by check rather than having payment deducted directly from your account.

If you would like to end our advisory relationship, you may do so by providing 30 days’ written notice.
We will prorate the advisory fees earned through the termination date and send you an invoice for the
advisory fees due. In addition, you may terminate our relationship within 5 days after signing your
agreement, without penalty, if you did not receive this Form ADV Part 2 at least 48 hours before signing.
You will, however, be responsible for any cost associated with implementing the investment strategy, and
losses, if any, that occurred in your account, during the time we managed your assets.

Other Costs Involved

In order to use separate managed accounts, you are required to enroll in Schwab’s Managed Account
Select and/or Access programs. These programs incur fees that are disclosed when you sign up. These
fees are in addition to the fees charged by AWR. The regular tiered fees for these services are based on
the amount of assets invested in each selected strategy and start at 1% for equity and balanced strategies,
0.75% for ETF-based strategies, 0.65% for fixed income and index-based equity strategies, and 0.35% for
fixed income strategies. The percentages are lowered as the amount of the investment in a strategy
exceeds certain thresholds. As part of the enrollment process, you are required to grant AWR the
authority to hire and fire separate managed account managers, and the authority to commit you to pay the
fees charged by these separate managed account managers. AWR will not engage in a strategy that
charges more than 1% in additional management fees.

In addition to our advisory fee and costs shown above, you are responsible for paying fees associated with
investing for your account. These fees include:

     management fees for ETFs and mutual funds. These are fees charged by the managers of the ETF
      or mutual fund and are a portion of the expenses of the ETF or mutual fund.

     brokerage costs and transaction fees for any securities or fixed income trades. These are
      generally charged by your custodian and/or executing broker. These may include brokerage
      costs and transaction fees incurred in the Schwab’s Managed Account Select and/or Access
      programs.

Additional information about brokerage costs and services is provided in “Item 12: Brokerage Practices.”

We believe the fees mentioned above are competitive; you may, however, be able to obtain similar
services from other sources at a lower price.

ITEM 7: TYPES OF CLIENTS
Our clients are generally individuals or families with assets in excess of $250k. Also, non-profit or
corporate investment pools that have a unified investment policy.

We generally require that you maintain $250,000 under management with us. However, we may waive
that minimum at our sole discretion.