Columbia Asset Management LLC

Item 5 – Fees and Compensation

   A. Fees for Advisory Services

Wealth Management Services
Wealth management fees are annual, billed quarterly. Wealth management fees are based on the
market value of assets under management at the end of each calendar quarter. Our standard fee
schedule for our clients is no more than 1% on the balance of the account, or a fixed agreed upon
fee. We don’t charge a minimum fee. Other financial services are billed at an agreed upon hourly
rate, payable upon completion.

The Advisor’s fee is exclusive of, and in addition to any applicable securities transaction and
custody fees and other related costs and expense described in Item 5.C below, which may be
incurred by the Client.

Financial Planning Services

CAM offers on-going financial planning services for an agreed upon hourly fee, billed and
payable upon completion.

   B. Fee Billing

Wealth Management Services
Wealth management fees are calculated by the Advisor and deducted from the Client’s
account[s] at the Custodian. The Advisor shall send an invoice to the Custodian indicating the
amount of the fees to be deducted from the Client’s account[s] at the end of the respective

quarter date. The amount due is calculated by applying the quarterly rate (annual rate divided by
4) to the total assets under management with CAM at the end of the quarter. Clients will be
provided with a statement, at least quarterly, from the Custodian reflecting deduction of the
wealth management fee. Clients provide written authorization permitting advisory fees to be
deducted by CAM to be paid directly from their account[s] held by the Custodian as part of the
wealth management agreement and separate account forms provided by the Custodian.

Financial Planning Services
On-going financial planning fees are invoiced by the Advisor and billed upon completion. At no
point will the Advisor collect advance fees of $1,200 or more for any services that will be
completed six (6) months or more in advance.

   C. Other Fees and Expenses

Clients may incur certain fees or charges imposed by third parties, other than CAM, in
connection with investments made on behalf of the Client’s account[s]. The Client is responsible
for all custody and securities execution fees charged by the Custodian if applicable. The fees
charged by CAM are separate and distinct from custody and execution fees. CAM’s main
custodian, Charles Schwab, does not charge custody fees or Trust or IRA fees. If a Client
chooses a different custodian for their assets, they may be charged custody fees, Trust and IRA
fees and we advise the Client to inquire about such fees from the non-Schwab custodian. If the
Client hold mutual funds, they will pay expense ratios charged by the mutual fund and possibly
brokers charge commissions on exchange traded funds (“ETF”) and stocks.

Charles Schwab does not charge a trading fee on stocks, but certain mutual funds and ETFs will
have a trading fee. There is also a transaction-based fee on wire transfers on cash leaving Charles
Schwab. CAM will never buy mutual funds with a load fee (buy and sell commission) unless
specifically asked to do so by the client.

   D. Advance Payment of Fees and Termination

Wealth Management Services
CAM may be compensated for its services at the end of the quarter after wealth management
services are rendered. Either party may terminate the wealth management agreement, at any
time, with no termination cost to the Client other than the pro-rated fee for the days under
management in the terminating quarter. The wealth management fee in the first quarter of service
is prorated from the inception date of the account[s] to the end of the first quarter. Fees may be
negotiable at the sole discretion of the Advisor. The Client’s fees will take into consideration the
aggregate assets under management with the Advisor. All securities held in accounts managed by
CAM will be independently valued by the Custodian.

Financial Planning Services
CAM does not require advance payment for financial planning services. Either party may
terminate the financial planning agreement at any time. Upon termination, the Client shall be
billed for the percentage of the engagement scope completed by the Advisor.

   E. Compensation for Sales of Securities

CAM does not buy or sell securities to earn commissions and does not receive any compensation
for securities transactions in any Client account, other than the investment advisory fees noted
above.

Item 7 – Types of Clients

CAM offers investment advisory services to individuals, high net worth individuals, trusts,
estates, corporations, and charitable organizations. The amount of each type of Client is available
on CAM’s Form ADV Part 1A. These amounts may change over time and are updated at least
annually by the Advisor. CAM has no relationship minimum size.