Discipline Wealth Solutions Inc

Fees and Compensation

The following types of fees will be assessed:

Asset Management – Fees are charged monthly as negotiated in arrears or advance and are
based primarily on asset size and the level of complexity of the services provided. In individual
cases, DWS has the sole discretion to negotiate fees that are lower than the standard fee shown or
to waive fees. Fees are not based on the share of capital gains or capital appreciation of the
funds or any portion of the funds. Comparable services for lower fees may be available from
other sources. Fees for the initial month will be prorated based upon the number of calendar
days in the calendar month that the advisory agreement is in effect. Fees are based on the market
value of the assets on the last business day of the month. The maximum annual advisory fees

would range from 1.32% to 1.65%, depending on the amount of assets under management
(“AUM”) with the adviser receiving 1.25% and DWS receiving a range from 0.07% to 0.40%,
depending on the amount of assets under management (“AUM”) – See chart below. Consulting
services are included in these fees for asset management services with the exception of unique
circumstances that may require a separate agreement for financial planning services (description
and fees are discussed below).

Fee Schedule for Asset Management:

   Total Account Value                        Maximum Adviser’s Fee       DWS Fee
 First $250,000                                     1.65%                  0.40%
 Next $250,000                                      1.55%                  0.30%
 Next $500,000                                      1.50%                  0.25%
 Next $1,000,000                                    1.40%                  0.15%
 Next $3,000,000                                    1.35%                  0.10%
 Above $5,000,000                                   1.32%                  0.07%

As authorized in the client agreement, the account custodian withdraws Discipline Wealth
Solutions Inc.’s advisory fees directly from the clients’ accounts according to the custodian’s
policies, practices, and procedures. The custodial statement includes the amount of any fees paid
to DWS for advisory services. You should carefully review the statement from your
custodian/broker-dealer’s statement and verify the calculation of fees. Your custodian/broker-
dealer does not verify the accuracy of fee calculations.

Fees are charged in arrears or advance on a monthly basis, meaning that advisory fees for a
month are charged on the first day of the month. Clients may terminate investment advisory
services obtained from DWS, without penalty, upon written notice within five (5) business days
after entering into the advisory agreement with DWS. The client is responsible for any fees and
charges incurred by the client 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, the client may terminate advisory services upon written notice delivered to and
received by DWS. Clients who terminate investment advisory services during a month are
charged a prorated advisory fee based on the date of DWS’s receipt of client’s written notice to
terminate. Any earned but unpaid fees are immediately due and payable, and any prepaid and
unearned fees will be immediately refunded. In cases where a third-party money manager is
utilized, the custodian calculates and deducts the fees and places that amount in the DWS sundry
account where the third-party managers are paid from. DWS will then retain the fees that are
due to them from that arrangement.

The client may obtain a refund of a pre-paid fee if the advisory contract is terminated before the
end of the billing period by contacting James Bryan Keith Ballentine at (864) 322-6046. Upon
receipt of written notification, any earned fee will immediately become due and payable, and any
prepaid and unearned fees will be immediately refunded. A client may terminate an advisory
agreement without being assessed any fees or expenses within five (5) days of its signing.

Financial Planning
Some clients will contract to have financial planning advice provided based on an hourly fee.
DWS’ hourly fee will be billed at a rate ranging from $125 to $500 based on the complexity and
skill level/experience needed for each client. Hourly fees are invoiced monthly in arrears as
services are provided. The fees are negotiable. Clients may terminate their contracts without
penalty within five business days of signing the advisory contract.

DWS will charge a fixed fee for comprehensive financial planning services of up to $30,000 per
plan based on the complexity of the case (e.g., net worth, income, needs of client, asset level,
family complexity and other issues) as contracted for with client. Fixed fees may be negotiated in
advance at the discretion of DWS. Clients may terminate their contracts without penalty within
five business days of signing the advisory contract. Fixed fee-based clients are either billed
monthly in arrears as services are provided or as a one-time fixed fee upfront and/or upon
delivery of services. Those paid upfront will be completed/delivered within six months.

Cash Management
DWS offers a cash management service which is charged at a fixed rate. The rate will not exceed
0.50% per annum. The accounts will be charged the flat fee separately from the above tiered
schedule, in arrears on a monthly, quarterly, or annual basis.

Company-Sponsored Retirement Plan Consulting Services – Fees are charged quarterly as
negotiated in arrears or advanced depending on client preference and are based primarily on asset
size and the level of complexity of the services provided. In individual cases, DWS has the sole
discretion to negotiate fees that are lower than the standard fee shown or to waive fees. Fees are
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Types of Clients

DWS offers investment advisory services to individuals, high net worth individuals,
corporations, other advisors and retirement plans. There is no minimum account size to open
and maintain an advisory account.

Form ADV, Part 2A, Item 8

       Methods of Analysis, Investment Strategies, and Risk of Loss

DWS’s methods of analysis and investment strategies incorporate the client’s needs and
investment objectives, time horizon, and risk tolerance. DWS is not bound to a specific
investment strategy for the management of investment portfolios, but rather consider the risk
tolerance levels pre-determined gathered at the account opening, as well as on an on-going basis.
Examples of methodologies that our investment strategies may incorporate include:

Asset Allocation – Asset Allocation is a broad term used to define the process of selecting a mix
of asset classes and the efficient allocation of capital to those assets by matching rates of return
to a specified and quantifiable tolerance for risk.

Dollar-Cost Averaging – Dollar-cost averaging is the technique of buying a fixed dollar amount
of securities at regularly scheduled intervals, regardless of the price per share. This will
gradually, over time, decrease the average share price of the security. Dollar-cost averaging
lessens the risk of investing a large amount in a single investment at the wrong time.

Technical Analysis – involves studying past price patterns and trends in the financial markets to
predict the direction of both the overall market and specific stocks.

Long-Term Purchases – securities purchased with the expectation that the value of those
securities will grow over a relatively long period of time, generally greater than one year.

Short-Term Purchases – securities purchased with the expectation that they will be sold within a
relatively short period of time, generally less than one year, to take advantage of the securities’
short term price fluctuations.

Our strategies and investments may have unique and significant tax implications. Regardless of
your account size or other factors, we strongly recommend that you continuously consult with a
tax professional prior to and throughout the investing of your assets.

Investing in securities involves risk of loss that clients should be prepared to bear. Although we
manage your portfolio with strategies and in a manner consistent with your risk tolerances, there
can be no guarantee that our efforts will be successful. You should be prepared to bear the risk
of loss.

All investments involve the risk of loss, including (among other things) loss of principal, a
reduction in earnings (including interest, dividends, and other distributions), and the loss of
future earnings. These risks include market risk, interest rate risk, issuer risk, and general
economic risk. Regardless of the methods of analysis or strategies suggested for your particular
investment goals, you should carefully consider these risks, as they all bear risks.

DWS’s primary goal for investing is to help the client maintain purchasing power over the long
term. This may result in short term variability and loss of principal. Time horizon and risk
tolerance are key determinates of the proper asset allocation. DWS’s approach focuses on taking
appropriate risks for which clients are compensated (i.e. market risk) and seeking to limit or
eliminate risks that do not provide compensation over the long term (i.e. individual stock risk or
lack of portfolio risk).

Below are some more specific risks of investing:

Market Risk. The prices of securities in which clients invest may decline in response to certain
events taking place around the world, including those directly involving the companies whose
securities are owned by the client or an underlying fund; conditions affecting the general
economy; overall market changes; local, regional or global political, social or economic
instability; and currency, interest rate and commodity price fluctuations. Investors should have a
long-term perspective and be able to tolerate potentially sharp declines in market value.

Management Risk. DWS’s investment approach may fail to produce the intended results. If our
perception of the performance of a specific asset class or underlying fund is not realized in the
expected time frame, the overall performance of client’s portfolio may suffer.

Equity Risk. Equity securities tend to be more volatile than other investment choices. The value
of an individual mutual fund or ETF can be more volatile than the market as a whole. This
volatility affects the value of the client’s overall portfolio. Small- and mid-cap companies are
subject to additional risks. Smaller companies may experience greater volatility, higher failure
rates, more limited markets, product lines, financial resources, and less management experience
than larger companies. Smaller companies may also have a lower trading volume, which may
disproportionately affect their market price, tending to make them fall more in response to
selling pressure than is the case with larger companies.

Fixed Income Risk. The issuer of a fixed income security may not be able to make interest and
principal payments when due. Generally, the lower the credit rating of a security, the greater the
risk that the issuer will default on its obligation. If a rating agency gives a debt security a lower
rating, the value of the debt security will decline because investors will demand a higher rate of
return. As nominal interest rates rise, the value of fixed income securities is likely to decrease. A
nominal interest rate is the sum of a real interest rate and an expected inflation rate.

Municipal Securities Risk. The value of municipal obligations can fluctuate over time, and may
be affected by adverse political, legislative and tax changes, as well as by financial developments
that affect the municipal issuers. Because many municipal obligations are issued to finance
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