Aznar Financial Advisors LLC

Item 5 – Fees and Compensation

Financial Planning and Investment Consultation Services

The fee for a financial plan is predicated upon the facts known at the start of the engagement. Firm fees for a
AZNAR FINANCIAL ADVISORS, LLC

financial plan engagement begin at $5,000. A $450 payment is required in advance, with the balance due upon
delivery of the financial plan. Since financial planning is a discovery process, situations occur wherein the client is
unaware of certain financial exposures or predicaments. In the event that the client’s situation is substantially
different than disclosed at the initial meeting, a revised fee will be provided for mutual agreement. The client
must approve the change of scope in advance of the additional work being performed when a fee increase is
necessary. Any remaining fees will be due upon delivery of the financial plan.

Financial Planning and Investment Management Services

Clients pay quarterly Fees which are calculated based on the total fair market value of the Managed Portfolio
on a tiered basis at the annual rate specified below. The Managed Portfolio includes all client and co-client’s
investable assets; taxable, tax-free and tax-deferred accounts, 401k and 403b plans, deferred compensation
plans, IRAs and Roth IRAs, Section 529 plans and cash, CD, checking and savings accounts. The fee for the initial
calendar year will be based on the fair market value of assets in the Managed Portfolio as of the ending month
date closest to the date of this Agreement and prorated as necessary for the remainder of the initial calendar
year. Advisory fees for each subsequent calendar year will be based on the fair market value of the assets in
the Managed Portfolio as of the preceding December 31st.

                      Investable Assets                                              Annual Fee
                      Up to $1,000,000.                                                  1.00%
                      On amounts from $1,000,001 to $2,000,000.                          0.85%
                      On amounts from $2,000,001 to $4,000,000.                          0.70%
                      On amounts from $4,000,001 to $7,000,000.                          0.55%
                      On amounts over $7,000,001.                                        0.40%

Clients are subject to a minimum quarterly fee of $3,000. Fees are negotiable at the discretion of the adviser.
For the avoidance of doubt, fluctuations in the client’s portfolio during the year will not change the fees
payable by the client.

The client or the investment manager may terminate an Agreement by written notice to the other party.

Householding Accounts

At its discretion, the firm may aggregate accounts (including multiple accounts) for the same individual or two
or more "household accounts" within the same family, or accounts where a family member has power of
attorney over another family member's account. If, however, investment objectives are substantially different
for any two or more related accounts requiring different investment approaches, the firm reserves the right to
apply its fee schedule separately to each account.

Billing Cycle and Fee Assessments

Asset-based fees for investment supervisory services are billed quarterly in advance and, Aznar Financial
Advisors, LLC is authorized to debit its fee directly from the client’s account at their custodian. Market value is
generally determined by the client's custodian or brokerage firm. In the absence of a market value, Aznar
Financial Advisors, LLC may seek an independent third-party opinion or may make a good faith determination.

The firm or the client’s account’s custodian or both will send the client a written notice of the fees to be
deducted. The client notice will include the amount of the fee to be deducted from the account; denoting the
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covered time period, and fee(s) to be deducted.

For those accounts held by service providers with which the firm does not maintain an agreement, clients will be
directly billed, with fees due upon receipt.

Other Fees and Expenses

In addition to Aznar Financial Advisors, LLC’s fees described above, clients will be responsible for the fees and
expenses associated with investing. These include: (1) Any transactional or custodial fees assessed by the
selected custodian or clearing firm and/or individual retirement account, or qualified retirement plan account
termination fees are borne by the client and are as provided in the current, separate fee schedule of the
service provider; and (2) investment expenses associated with the mutual funds and ETFs held in the account
and are disclosed in each fund’s prospectus (including management fees). The firm does not receive “trail” or
12b-1 fees from any investment company. Clients are encouraged to read prospectuses before investing.

Termination of Services

Either party may terminate the agreement at any time, which will typically be in writing.

A new client may terminate an agreement with the firm within five business days after the signing of the
services agreement without penalty or charge. Thereafter, a pro rata portion of any prepaid, unearned fees will
be promptly returned.

A client may terminate any of the aforementioned agreements at any time by notifying Aznar Financial
Advisors, LLC in writing and paying the rate for the time spent on the investment advisory engagement prior to
notification of termination. If the client made an advance payment, Aznar Financial Advisors, LLC would refund
any unearned portion of the advance payment.

At termination, it is the client's responsibility to ensure an immediate transfer is completed of any portfolio or
account to the receiving service provider. The firm is not responsible for future allocations, transactions, etc.,
upon termination notice.

Firm Services
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Item 7 – Types of Clients
AZNAR FINANCIAL ADVISORS, LLC

Aznar Financial Advisors, LLC provides its services primarily to individuals and families. The firm does not require
minimum dollar value of assets. The firm, does, however, charge minimum fees as described in Item 5: Fees and
Compensation, above. Aznar Financial Advisors, LLC reserves the right to waive or reduce certain fees based on
unique individual circumstances, special arrangements, preexisting relationships or as otherwise determined by
the firm principal. The firm also reserves the right to decline services to any prospective client for any reason.

Item 8 – Method of Analysis, Investment Strategies and Risk of Loss

Method of Analysis

If the firm is engaged to provide investment consultation or supervisory services, the client’s current financial
situation, needs, goals, objectives and tolerance for risk are initially evaluated. Asset allocation and
investment policy decisions are made and discussed with the client to, in the adviser's best judgment, meet
the client’s objectives while minimizing risk exposure.

The firm employs fundamental analysis that involves using data to evaluate a security's intrinsic value. For
example, fundamental analysis of a bond's value could involve evaluating economic factors including interest
rates, the current state of the economy, and information about the bond issuer’s credit ratings. Fundamental
analysis of a stock takes into account revenues, earnings, future growth, return on equity, profit margins and
other data to evaluate a company's value and its potential for future growth.

Investment Strategies

Aznar Financial Advisors, LLC maintains the following core investment beliefs:

Active Versus Passive
We believe primarily in passive investing. Passively managed funds should serve as the building block of a
portfolio since these funds allow individuals to participate intelligently in the stock market, by offering
diversification and low expenses. We primarily invest in mutual funds managed by Dimensional Fund
Advisors (DFA) and the Vanguard Group as well as Exchange Traded Funds as the building blocks of our
clients’ portfolio.

Asset Allocation
We believe that asset allocation is a significant determinant of long-term portfolio performance. Because we
do not believe in market timing, we do not recommend the use of sector managers. We believe in
maintaining a strategic allocation and only infrequently revise that allocation. We believe in rebalancing to
the strategic allocation. However, the influence of taxes and transaction costs leads us to conclude that
rebalancing with fairly wide bands is the most appropriate solution.

Time Diversification
We believe that the relative risk of increasing equity exposure decreases as the time horizon of the goal
increases. We do not believe that any “investment” should be made for a goal with less than a five-year time
horizon. Funds required in fewer than five years should be placed in money markets or fixed income
securities (e.g., CDs, Treasuries) with maturity dates equal to or less than the goals’ time horizons.

Growth versus Value
We believe in the conclusion of the Fama/French research that, over time, value equity portfolios will
provide superior performance. However, we also believe that eliminating growth allocations will result in a
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divergence from the broad markets that clients may find unacceptable. We therefore believe in incorporating
both growth and value in our portfolios but include a value tilt to take advantage of this value premium.

Ongoing Management
We believe that there should be regular review of a client’s situation to determine if he is continuing to move
in the direction of achieving his goals. This includes revisions in strategic allocations as a result of revised
assumptions or changing client circumstances or goals. Our responsibility is to help our clients “stays the
course” and do so with a minimum of emotional pain. We believe that the focus should always be the client
and the achievement of his goals, not the performance of the portfolio.

In Summary
We believe that although you cannot control the performance of the market, you can control the expenses you
incur when you invest and the timing of the taxes you pay as you invest. We believe that you can regulate the
amount of risk that you take with an appropriately diversified portfolio of cash, bond and stock funds. We
recommend no-load, low cost, tax-efficient (when necessary) mutual funds and exchange traded funds in an
effort to minimize costs and turnover.

Risk of Loss

While Aznar Financial Advisors, LLC believes its strategies and investment selection is designed to potentially
produce the highest possible return for a given level of risk, it cannot guarantee that an investment objective
or planning goal will be achieved. Some investment decisions made by the firm and/or client may result in
loss, which may include loss of the original principal invested.

All investment programs have certain risks that are borne by the investor. Aznar Financial Advisors, LLC’s
investment approach keeps the risk of loss in mind.

The firm relies upon the accuracy and validity of the information or capabilities being provided by selected
vendors, rating services, market data, and the issuers themselves. The firm cannot predict events, actions
taken or not taken, or the validity of all information it has researched or provided which may or may not affect
the advice to or investment management of a client account or financial plan.

Whenever employing a passive, efficient markets strategy, an investor should consider the potential risk that
their broader allocation may generate lower-than-expected returns than that from a specific asset, and that
the risk on each type of asset is a deviation from the average return from the asset class. The firm believes this
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