Financial Consultants & Advisory Corporation

Fees and Compensation
Financial Planning

Clients are charged fees by Charter based upon the complexity and estimated hours of worked
needed to prepare the plan. No advance or deposit is required unless specified for larger projects.
If a deposit is required, fees are payable one half at the time of execution of a written agreement
retaining Charter to prepare the plan, with a maximum amount of $1,200 paid at this time. The
remainder of fees is due upon receipt of the plan by the client.

Additional work requested by the client beyond preparation of the plan is billed at a rate ranging
from $45 to $300 per hour, payable upon completion of the work.

Charter Advisory Corporation
Form ADV Part 2A                                                                              Brochure

Charter also provides investment advice on isolated transactions for individuals who are not
otherwise clients. This service consists of consultations generally followed by written
recommendations regarding the specified transaction(s). Fees for this service include a minimum
of $325, with additional charges of $125 to $300 per hour for the fourth and subsequent hour
thereafter.

The client may terminate a financial planning agreement within five business days after the date
when all parties have signed the agreement without penalty. After this five-day period, either party
may terminate the agreement upon written notice to the other. The client will incur a prorated
charge for bona fide financial planning and/or consulting services rendered prior to such
termination. Accordingly, any unearned, pre-paid fees will be returned to the client promptly.

Charter’s Investment Advisory Services Fees

Management fees are paid quarterly in advance. Fees are due on the first day of the billing quarter,
and may be billed directly to the client or deducted from the advisory account. Fees are based on
the account’s asset value as of the last business day of the prior billing quarter and are prorated for
accounts opened during the quarter.

Fees are negotiable and will be reviewed with each client to discuss the scope prior to entering into
an agreement.

An advisory client will have a period of five (5) business days from the date of signing the
investment management agreement to unconditionally rescind the agreement and receive a full
refund of all fees. Thereafter, either party may terminate the agreement with 30 days written notice.

The account custodian may charge fees, which are in addition to and separate from the investment
advisory service fee. Custodians may charge accounts for various transaction costs, retirement plan
and administration fees. In addition, some mutual fund assets deposited in the account may have
been subject to deferred sales charges and 12b (1) fees and other mutual fund annual expenses as
described in each fund’s prospectus. Advisory clients should also note that fees for comparable
services vary and may be considered in excess of industry norm. Lower fees for comparable
services may be available from other sources.

Charter Advisory Corporation
Form ADV Part 2A                                                                            Brochure

Fees for LPL Advisory Program

The account fee charged to the client for each LPL advisory program is negotiable, subject to the
following maximum account fees:

Manager Access Select          2.95% *
OMP                            2.5%
PWP                            2.95% **
MWP                            2.95%***
GWP                            1.35%****

* The Manager Access Select (“MAS”) account fee consists of an advisory fee of up to 2.35%
annually and a manager fee of up to 0.60%. See the MAS program brochure for more information.
** The PWP account fee consists of an advisory fee of up to 2.35% annually and a manager fee
of up to 0.60%. See the PWP program brochure for more information.
*** The MWP account fee consists of an advisory fee of up to 2.35% and a manager fee of up to
0.60%. See the MWP program brochure for more information.
**** GWP clients are charged an account fee consisting of an LPL program fee of 0.35% and an
advisor fee of up to 1.00%. LPL Research currently serves as the sole portfolio strategist and does
not charge a fee for its services.

Account fees are payable quarterly in advance. LPL serves as program sponsor, co-investment
adviser and broker-dealer for the LPL advisory programs.

Charter and LPL may share in the account fee and other fees associated with program accounts.
Associated persons of Charter may also be registered representatives of LPL.

Conflicts of Interest

Charter receives compensation as a result of a client’s participation in an LPL program.
Depending on, among other things, the type and size of the account, type of securities held in the
account, changes in its value over time, the ability to negotiate fees or commissions, the historical
or expected size or number of transactions, and the number and range of supplementary advisory
and client- related services provided to the client, the amount of this compensation may be more
or less than what the Advisor would receive if the client participated in other programs, whether
through LPL or another sponsor, or paid separately for investment advice, brokerage and other
services.

Charter Advisory Corporation
Form ADV Part 2A                                                                           Brochure

The account fee may be higher than the fees charged by other investment advisers for similar
services. Clients should consider the level and complexity of the advisory services to be provided
when negotiating the account fee (or the advisor fee portion of the account fee, as applicable) with
Charter.

Please refer to the relevant LPL Form ADV program brochure for a more detailed discussion of
conflicts of interest for each LPL Financial sponsored advisory program.

Fee Billing for LPL custodied advisory accounts
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Types of Clients
Charter offers personalized investment advisory services to individuals, pension and profit sharing
plans, trusts, estates, charitable organizations, corporations, and other business entities.

Investments in the Charter Investment Advisory Services program do not require a minimum
account size, however minimum account sizes may be required by the custodian of the model
portfolio selected as disclosed in this brochure.

LPL OMP: this program generally has a minimum account size of $1,000; note that accounts
below $10,000 are required to have annual or recurring contributions in place

LPL PWP: this program generally has a minimum account size of $250,000.

LPL MWP: this program generally has a minimum account size of $10,000.

LPL Manager Access Select: this program has a minimum account size of $50,000, however, in
certain instances; the minimum account size may be lower or higher.

Charter Advisory Corporation
Form ADV Part 2A                                                                               Brochure

Methods of Analysis, Investment Strategies and Risk of Loss
Charter will evaluate securities based on a fundamental or technical analysis using charts or
cyclical studies.
Fundamental analysis is a method of evaluating a security that entails attempting to measure its
intrinsic value by examining related economic, financial and other qualitative and quantitative
factors. The primary risk of fundamental analysis is that estimates of intrinsic value might be
incorrect.

Technical analysis is a method of evaluating securities by analyzing statistics generated by market
activity, such as past prices and volume. The primary risk of Technical analysis is that past market
performance is not always an indicator of future market performance.

Each client will meet with Charter to discuss the specific investment strategy to be used such as
long term purchases, short term purchases, trading (securities sold within 30 days), margin and
option trades. Charter may advise its investment advisory clients on other partnership investments
such as mining – precious metals, agricultural business, cable TV, equipment leasing
and/or venture capital.

Securities and other types of investments all involve different types and levels of risk that the client
should be prepared to bear. Frequent trading can effect investment performance, particularly
through increased brokerage and other transaction costs and taxes. Investment risks are typically
discussed with clients in defining the investment policies and objectives that will guide investment
decisions for their accounts.

Clients must realize that obtaining higher rates of return on investments entails accepting higher
levels of risk. Based upon discussions with clients, Charter attempts to identify the balance of risks
and rewards that is appropriate and comfortable for the client. It is still the client’s responsibility
to ask questions if he or she does not fully understand the risks associated with any investment.
Clients are strongly encouraged to read prospectuses, when applicable, and ask questions prior to
investing.

Charter cannot assure clients that investments will be profitable or assure that no losses will occur
in their portfolios. Past performance is an important consideration with respect to any investment
or investment advisor, but it is not necessarily an accurate predictor of future performance.

Charter Advisory Corporation
Form ADV Part 2A                                                                            Brochure