Crumly and Associates Incorporated

Item 5: Fees and Compensation

We, depending upon the engagement, offer our services on a fee basis which may include
hourly and/or fixed fees as well as fees based upon assets under management.

In certain circumstances, fees, account minimums and payment terms are negotiable
depending on a client’s unique situation – such as the size of the aggregate related party
portfolio size, family holdings, low-cost basis securities, or certain passively advised investments
and pre-existing relationships with clients. Certain clients may pay more or less than others
depending on the amount of assets, type of portfolio, or the time involved, the degree of
responsibility assumed, complexity of the engagement, special skills needed to solve problems,
and application of experience and knowledge of the client’s situation.

Compensation – Portfolio Management Services
Annual portfolio management fees are as follows:

                Household Assets Under Management                      Advisory Fee
                        $25,000,000 - OVER                                0.40%
                     $5,000,000 - $24,999,999                             0.50%
                      $3,500,000 - $4,999,999                             0.60%
                      $2,500,000 - $3,499,999                             0.70%
                      $1,750,000 - $2,499,999                             0.80%
                      $1,250,000 - $1,749,999                             0.90%
                       $750,000 - $1,249,999                              1.00%
                        $500,000 - $749,999                               1.10%
                        $250,000 - $499,999                               1.20%
                        $150,000 - $249,999                               1.30%
                        $100,000 - $149,999                               1.40%

Advisory fees are debited or billed quarterly in advance and are calculated based on the market
value of the account on the last day of the previous quarter. For the first quarter during which
the account is opened, the fee is charged in arrears. It is prorated based on the market value at
the time cash is deposited or assets are transferred into the account and the number of days
remaining in the quarter. Fees are negotiable. Fees will be debited from the account in
accordance with the client authorization in the client agreement. As noted in Item 7: Types of
Clients, for any household below our minimum of $100,000 each account will be assessed a $55
annual maintenance fee.

The advisory fee is deducted from the account by the custodian of the assets based on a
written authorization from the client. Independent Manager fees may also be deducted from
the account by the custodian of the assets based on a written authorization from the client.

If the agreement is terminated before the end of the billing quarter, the client is entitled to a
prorated refund of any pre-paid advisory fee based on the number of days remaining in the
quarter after the termination date. In addition, the investment advisory contract may be
terminated by the client within five (5) business days of signing the contract without incurring
any advisory fees if the client has not received the firm’s disclosure brochure at least 48 hours
prior to signing the investment advisory contract.

Compensation – Retirement Plan Services
Annual fees for Retirement Plan Services range from 0.03% to 1.00%, charged quarterly in
arrears. Alternatively, Retirement Plan Services may be offered on a flat fee basis ranging from
$2,500 - $100,000 annually.

Compensation – Financial Planning
Financial Planning Services are available to all clients. Fees will be charged in one of two ways:

   •   On an hourly basis of $50 per hour (for clerical or paraprofessional work) or $300 per
       hour (for all work handled by the adviser); or
   •   As a fixed fee, typically ranging from $1,000 to $7,000, depending on the nature and
       complexity of each client’s circumstances, and the number of areas of analysis the client
       chooses. Financial Planning areas of analysis may include:

                   Retirement Goal Planning                       $2,500 or less
                   Estate Planning and Estate Tax Analysis        $5,000 or less
                   Life Insurance Needs Analysis                  $2,500 or less
                   Long Term Care Needs Analysis                  $1,000 or less
                   Disability Insurance Needs Analysis            $1,000 or less
                   Major Purchase Goal Planning                   $1,000 or less
                   Education Planning                             $1,000 or less

It is the client’s choice to be billed on an hourly basis or fixed fee basis. Typically, fees are
quoted on an hourly basis for ala carte engagements – one or two areas of analysis and on a
fixed fee basis for integrated engagements – three or more areas of analysis. Fees are
influenced by such factors as the scope of work performed, complexity of a client’s situation
and amount of data to be gathered. Fees are negotiable and will be documented in the client’s
financial planning engagement agreement. Fees include all client meetings necessary to
complete and present/deliver the financial plan. All financial planning fees are due in arrears
upon presentation of the financial plan or engagement with the client. Each integrated plan
takes approximately 21 hours to complete.

For ongoing services, there may be a negotiated annual maintenance fee. Ongoing services
include:

   •   Annual Client Update and Financial Plan Review Meeting
   •   Financial Account and Rewards Program Aggregation
   •   Asset Allocation Consulting

   •   Personal Financial Statement
   •   Virtual Vault

Annual maintenance fees are paid in advance.

If a Financial Planning agreement is terminated before the end of the billing period, the client is
...

Types of Clients
Portfolio management services are offered to individuals, high net worth individuals, pension
and profit-sharing plans, charitable organizations and corporations or other business entities.
Financial planning services are offered to individuals.

Account Minimums
We require a minimum account size of $100,000 for portfolio management services, although
this may be negotiable under certain circumstances. We may group certain related client
accounts for the purposes of achieving the minimum account size. As noted above, for any
household below our minimum of $100,000 each account will be assessed a $55 annual
maintenance fee.