Delta Financial Advisors Inc

Item 5 - FEES AND COMPENSATION

    Wealth Management Program

    A.   Delta charges an asset-based fee for investment management. Our fee schedule is below.

                             Fee Breakpoint Levels              Maximum Annual
                                                                 Advisory Fee
                          Up to $250,000                            2.25%
                          $250,000 to $500,000                      2.00%
                          $500,001 to $1,000,000                     1.75%
                          $1,000,001 to $3,000,000                   1.50%
                          $3,000,001 to $5,000,000                   1.00%
                          $5,000,001 to $10,000,000                 0.80%
                          Over $10,000,000                         Negotiable

         The different tiers are referred to as breakpoints. The specified fee percentage for the
         management of a given account under management is determined by the value of that account
         and is applied to all of the assets in that account. Fees are not determined based on an aggregate
         of all assets in a client portfolio. Consequently, clients will pay different fees based on the
         account size for each account. For example, if a client has two accounts, one with assets valued
         at $750,000, and the other with assets valued at $275,000, the client will be charged an advisory
         fee of 1.75% for management of the $750,000 account and will be charged an advisory fee of
         2.0% for management of the $275,000 account.

         Fees are negotiable and are not based on a share of capital gains upon or capital appreciation
         of the funds or any portion of the funds. Further, Delta can change the above fee schedule
         upon 30-days prior written notice to you or immediately upon your written consent.

    B.   Advisory fees are collected directly from the client’s account, provided the client has given
         Delta written authorization. The account custodian will provide the client with an account
         statement reflecting the deduction of the advisory fee. If the Account does not contain
         sufficient funds to pay advisory fees, Delta has the authority to sell or redeem securities in
         sufficient amounts to pay advisory fees.

    C.   In addition to the advisory fees above, the client will pay additional fees to separate account
         managers, and the custodian, including custodial services fees, account maintenance fees, transaction
         fees, and other fees associated with maintaining the Account. These fees are not charged by Delta
         and are charged by the issuer, administrator, broker/dealer or account custodian. Delta does not share
7                                                     6 of 16

                                          Delta Financial Advisors, Inc.

          in any portion of these third-party fees. Additionally, clients will pay a proportionate share of
          management and administrative fees charged by any mutual fund the client purchases or holds. Some
          mutual funds charge sales fees and distribution/ marketing fees (also called 12b-1 fees). These fees
          are not shared with Delta. They are compensation to the fund or its manager.

    D.    Advisory fees are charged in arrears on a quarterly basis based upon the average daily value of
          the account of the days during the previous quarter.

    E.    Some Advisory Representatives of Delta are dually registered representatives of Regulus
          Financial Group, a registered broker/dealer, member of the Financial Industry Regulatory
          Authority (FINRA) and SIPC.

    F.    If the account is opened with securities previously purchased through Regulus Financial Group
          or through a Delta Advisory Representative, the Delta Advisory Representative will have already
          received commissions on the purchase. If the account is opened with cash proceeds from the sale
          of securities purchased through Regulus Financial Group or a Delta Advisory Representative,
          the Delta Advisory Representative will already have received commissions on the sale.

    G.    Clients may purchase the securities recommended by Delta directly or through other brokers or
          agents not affiliated with Delta.

    Termination Provisions
    Clients may terminate investment advisory services obtained from Delta, without penalty, upon
    delivery of written notice to Delta within five (5) business days after entering into the advisory
    agreement with Delta. Clients will be responsible for any fees and charges incurred from third parties
    as a result of maintaining the Account such as transaction fees for any securities transactions executed
    and Account maintenance or custodial fees. Thereafter, Clients may terminate investment advisory
    services upon Delta's receipt of written notice. Prorated fees will be charged based on the market value
    of the account on the date notice of termination is received by Delta.

    As discussed in Item 12, below, some associated persons of DFA are separately licensed Registered
    Representatives of an unaffiliated broker-dealer. If a Client elects to have DFA prepare a financial plan and
    does not elect to engage DFA to provide investment management services, the Client must be aware that
    these individuals, in their separate capacity, are permitted to recommend that Client purchase or sell
    securities. This usually occurs as part of discussions about implementation of the Client’s financial plan. If
    a Client elects to purchase or sell securities through the DFA associated person, Client must be aware that
    the associated person will receive commission on each transaction. This practice presents a conflict of
...

Item 7 - TYPES OF CLIENTS

    Delta's services are geared toward individuals, including high net worth individuals (i.e. clients with a
    liquid net worth of at least $1,000,000).

    Generally, Delta will require a minimum asset size of $100,000 for participation in Delta's
7                                             8 of 16

                                           Delta Financial Advisors, Inc.

    management services. The minimum asset size is determined based on all managed assets in a client
    household. However, exceptions are made depending on the circumstances of the client's situation and
    complexity of the client.