Financially Speaking Inc

ITEM 5 – FEES AND COMPENSATION

A. Financially Speaking, Inc. services are fee-only, and we do not sell anything on a
commission basis. This approach avoids any potential for biased advice or conflict of interest as
we assist you in meeting your goals. The initial consultation is free of charge.

Upon entering into a contractual relationship, the client is quoted an annual fee based on the
complexity of services rendered. That fee is calculated upon one or more of the following
schedules:

Financial Planning & Investment Advisory Services:

       A.      For ongoing financial and investment advisory services: Unless negotiated
               otherwise, and agreed upon in the Engagement Letter, the annual fee is 1% of assets
               under management. The fee is billed quarterly in advance, as calculated from the
               portfolio value at close of business on the last day of the prior quarter.
                        i. Because fees are billed in advance, we prorate for deposits and
                           withdrawals that occur during the previous quarter if they adjust the bill
                           by more than $10. Additionally, should we or you choose to terminate
                           our relationship, we refund your fees to the date of termination.
                       ii. Fees may be re-negotiated in the future depending on scope of services
                           rendered and portfolio value. A change to the fee percentage will be
                           agreed upon and signed off on in a new Engagement Letter by both
                           Financially Speaking and the Client before said fee is implemented.
       B.      Client/Planner relationships lasting less than one year are discouraged. If we
               agree to occasional consultations, the hourly fee rate can be negotiated at that
               time.
       C.      Financial Planning: We do not charge a separate fee for financial planning
               services for clients with assets under management. This includes the preparation
               of personalized financial plans, investment strategies, retirement planning, and
               any other related financial advisory services. For clients without assets under
               management, we charge an hourly rate of $250/hour for financial planning
               services.

B. Payment of Fees: The management fees for assets held at Charles Schwab and Nationwide
are payable quarterly in advance, prorated for the previous quarter. If you have accounts at
Charles Schwab and Nationwide, then you may choose to either have fees deducted from your
investment account(s) or pay fees by check. The payment schedule is arranged for your
convenience and actual accrued charges for services rendered will become immediately due and
payable if the agreement is prematurely terminated.

C. Clients who invest in mutual funds pay their respective share of each mutual fund’s
management, administrative and transaction expenses. These expenses are internal to each
mutual fund and not a separate charge to the client. We attempt to avoid most trading fees with
no-load/no-transaction-fee mutual funds.

ITEM 7 – TYPES OF CLIENTS

Financially Speaking, Inc. typically provides investment advice to individuals, trusts, estates,
charitable organizations, corporations and business entities.

While there is no absolute minimum dollar value of assets or other condition for starting or
maintaining an account, full client status is usually appropriate for individuals with annual
incomes of $125,000 or more and/or net worth of $500,000 or more, and for families with annual
income(s) of $250,000 or more and/or net worth of $1,000,000 or more.