Capital Wealth Advisors Ltd

Item 5 - Fees and Compensation

All fees charged by CWA for advisory services are negotiable. Fees paid to CWA are for CWA advisory
services only. Commissions on transactions and other account fees will also be charged in accordance
with the account’s brokerage firm’s normal commission schedule.

Prospective clients should be aware that in addition to CWA’s Investment Management fee, each fund in
which a client’s assets are invested also pays its own advisory fees and other internal expenses. These
fees have already been deducted from the fund’s reported performance. Depending on the fund, a
client may be able to invest directly in the shares issued by the fund with or without incurring any sales
or management fees.

In addition, there are tax effects pertaining to fund share redemptions made by CWA on behalf of
clients. Redemptions are taxable events which may accelerate the recognition of capital gains, and
frequent redemptions may result in short term, rather than long term, capital gains.

Business Consulting Fees
Fees for Business Consulting are typically charged on an hourly or flat fee basis. The hourly fee can range
from $200-$300 per hour and is negotiable. An estimate of the total fee based on the complexity of the
project and amount of time anticipated to be needed to complete the project is provided at the time of
entering into the contract. Fifty (50) percent of the estimated fee is typically due at the time of signing
with the balance due upon completion of the consulting project. If the contract is terminated before the
contract is completed, the time spent on the project to date of termination will be prorated at the
hourly rate and a refund for any prepaid unearned fee will be or if fees are due the client will be
invoiced for the work performed and payment will be due upon receipt.

Investment Management Services Fee
Fees for Investment Management Services are calculated as a percentage of the total value of
investments under CWA’s management. In addition to this advisory fee, there will be transactional,
administrative, servicing fees, and commissions charged by the account custodian.

The maximum fee charged by CWA is 2.0%.

All fees due are set forth in each client’s Discretionary Investment Management Services Agreement.

Fees are payable monthly in arrears and are calculated on the basis of the market value of the
investments in the account(s), including any balances held in money market funds as of the last business
day of the recently completed month. The fee for any period which is less than a full month may be
prorated with the exception of the initial month. Fees for the initial month shall be calculated on a non-
pro-rata basis. CWA may at its discretion aggregate accounts for fee calculation purposes. No
adjustment is made to the monthly fees for changes in the market value of securities or for partial
withdrawals.

Upon termination of the account which can occur by ten (10) days advanced written notice from one
party to the other. Fees will be prorated to the effective date of termination.

Fees payable to CWA for Investment Management Services are deducted from the client’s account when
due. The client will receive an invoice from CWA as well as reports from the account’s custodian
showing the fee calculation and debits. CWA will liquidate investments to pay the fee if cash or money
markets are not available. Authorization for the deduction of fees this way is contained in the services
agreement. The client may terminate the authorization for automatic deduction of the advisory fee
payable to CWA at any time by notifying CWA in writing.

CWA has the right to modify its fee schedule upon thirty (30) days advanced written notice to the client.

Financial Planning and Consulting Services Fee
CWA’s fee for providing Financial Planning and Consulting Services Fees may be charged on a fixed fee
per project basis, or on an hourly fee basis. The hourly rate is $250. The hourly rate may be negotiated.

Fees are determined by each CWA Representative by estimating the complexity of the client’s
circumstances, the level of skill required to perform the service, and the amount of time that will be
required to perform research, analysis, and plan preparation. The exact fee is disclosed to the client
prior to contract signing.

One-half of the quoted fee is payable upon commencement of services with the balance due upon
delivery of the written plan or completion of consulting services. Payment arrangements are established
in the services agreement. The fee may be waived in whole or in part by CWA at its sole discretion.
Financial Planning and Consulting Services may be terminated upon ten (10) days advance written notice
by either party to the other. Any prepaid unearned fee will be refunded to the client. Any fee due will be
prorated to the date of termination.

The fees described above may change based on special situations such as an expansion of a project,
increase in the number of reviews, more specialized needs of the client, more complex planning, or
more detailed reporting. Before such a change is made, the client is given (10) days prior written notice
and agrees to such changes by signing a new services agreement, or an amendment thereto.

Fees do not include product transaction commissions, or the fees for third-party professional services,
e.g., attorneys, accountants, or other third parties.

Sub-Adviser Service Fees
As noted above, the fee for sub-adviser services is typically a portion of the advisory fee being paid to
the other investment advisor for investment advisory services. The fee is negotiated between CWA and
the other investment advisor and usually ranges between 0.2% and 0.4% of the annual investment
advisory fee collected by the other investment advisor for the management of the sub-accounts.

Other Compensation
Neither CWA, nor any of its Representatives receives any compensation from third parties (such as for
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Item 7 - Types of Clients

CWA makes investment management services available to a wide variety of clients, including but not
limited to, individuals, entities, pension and profit-sharing plans, trusts, estates and charitable
organizations, corporations, and other business entities.

CWA does not require a minimum account size or minimum fee. The firm does, however, have the right
to reject or terminate any account for any reason.