Charleston Financial Advisors LLC

Item 5: FEES and COMPENSATION
Charleston Financial Advisors, LLC receives its fees from investment supervisory services and
hourly or fixed, project-based financial planning services on financial matters that do not involve
securities. All fees are negotiable.

Fee Schedule

Financial Planning and Investments Consultation Services - Fees
Hourly financial planning fees can range anywhere from $100 to $400 per hour depending on the
complexity of the case and the staff member providing the services. All work accomplished will
be charged against the initial deposit as outlined in the Hourly Consultation Agreement. Once the
time is exhausted, remaining work will be billed as agreed.

For fixed and project-based financial planning clients, the fee is agreed upon through an
engagement letter. One-half of the fee is due before work has begun and the balance comes due
at the completion of the last written report meeting. CFA will exert reasonable efforts to move
the process along in a timely manner. Should the engagement extend beyond the agreed upon
timeframe, we will mutually regroup to determine whether continuing the engagement remains
in the clients’ best interest.

Investment Supervisory and Asset Management Services
Asset management fees are charged either as a percentage of assets under management or on a
fee basis. There is a minimum fee of $1,000 annually, which can be waived at our discretion.

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However, at no time will any minimum payment exceed 2% of Client’s assets under management
with CFA. Asset management fees as a percentage of assets managed are bracketed as follows:

         Assets Under Management                      Fee per Calendar Quarter
         Up to $500,000                               .25%
         $500,001 to $1,500,000                       .225%
         $1,500,001 to $3,000,000                     .200%
         $3,000,001 to $5,000,000                     .175%
         $5,000,001 to $7,500,000                     .150%
         Above $7,500,001+                            .125%

Example: Client with $750,000 under management on the last day of the Calendar Quarter;
      $500,000 * 0.25%      =      $1,250.00
      $250,000* 0.225%. =           __ 562.50
      Total Fee                     $1,812.50

Sub-advisory fees will not increase the cost to the client. Sub-advisory fees will be paid out of
Charleston Financial Advisor’s fees listed above and transmitted to the sub-advisor by Charleston
Financial Advisors.

Flat Fees are negotiated bi-annually and may be offered to clients who have $2,000,000 or more
under management. During the term of the agreement, the fee stays the same, regardless of
account values, trading activity, or financial consulting rendered. This method provides a way to
predict outlays for our services during the period of the agreement. An estimate of the value of
the service is mutually agreed upon and billing occurs quarterly.

Billing Method

Asset management fees are paid quarterly in advance and can either be deducted from the
client’s account or billed directly to the client, whichever is preferred.

Fees as a Percentage of Assets
The fee as a percentage of assets is based on the value of the Assets Under Management for each
“client household” on the last day of the previous quarter. The formula used for the calculation
is as follows: (Value on Last Day of the previous quarter)x(the quarterly fee factor1).

For billing purposes, we aggregate client accounts that have family or business relationships with
each other. A “client household” means an individual and his or her spouse or domestic partner,
his or her minor children, a business under his or her control, or a trust where he or she is a
trustee.

  The quarterly fee factor is the calculated fee amount divided by the account value. In the example above, the total
fee is $1,812.50. The account value is $750,000. The quarterly fee factor is Total Fee / Account Value = $1,812.50 /
$750,000 = 0.2417%.

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For new clients, the investment management fee payment is a pro-rata calculation. The
calculation is based on the actual number of days remaining in the calendar quarter. The formula
used to calculate is as follows: (Number of Days Remaining in Quarter) / (Number of days in
quarter) x (Value on Billing Start Date)x(the quarterly fee factor).

Our billing date is based on the close-of-day value of the last day of the month, the same as a
custodian’s statement. A discrepancy between our statement and a custodian’s statement may
arise when a client has accrued interest, which we count toward the value of the account. We
employ Black Diamond to reconcile our stated value with those of the custodian.

By All Accounts – Aggregation Services
Charleston Financial Advisors, LLC monitors accounts held by custodians other than Charles
Schwab & Co. This process, known as “account aggregation,” helps us consider the full scope of
a client’s financial situation and assists the client in measuring the performance of outside
investments compared to those managed by Charleston Financial Advisors, LLC. Assets under this
plan are billed at half the rate of assets under management (described in the fee schedule); a
client using this service executes a supplemental agreement.

Under this arrangement, the advice given to the client is based on a point in time for which the
information is provided to Charleston Financial Advisors, LLC. The client is responsible for placing
trades in held away accounts for which we provide investment advice, but do not maintain
trading authority. Charleston Financial Advisors, LLC will not provide portfolio management or
execution services on these accounts.

Cash Balances Policy
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Item 7: TYPES OF CLIENTS
Charleston Financial Advisors, LLC generally provides fiduciary financial advice to individuals of
all stages of life, as well as pensions and profit-sharing plans, trusts, estates, charitable
organizations, and corporations. This includes financial planning advice and asset management.

For our hourly financial planning, project, and consulting engagements, we do not require
minimums as to income, assets, net worth, length of engagement, revenues generated or other
conditions for engaging our services.

The minimum account size is $500,000, to be waived solely in CFA’s discretion