Firestone Capital Management Inc

Item 5 – Fees and Compensation

As a fee-only firm, we receive compensation only from hourly fees for specific services, and from
fees based on assets under management according to the fee schedule set out in your written
management contract. Fees will not be changed without prior written notification.

Portfolio Management Services

Fees are billed and charged quarterly in advance, based on the value of your assets under
management as of the final date of each calendar quarter. You will receive, as part of your
quarterly portfolio reports, a billing statement showing the fees due, with the underlying
portfolio details and the calculations deriving the fee amount. Partial period fees will be assessed
pro-rata.

The fee percentages charged may vary based on the complexity of the account and may be
negotiable. Therefore, clients with similar assets under management and investment objectives
may pay significantly higher or lower fees than other clients. Annual fees for investments under
management are typically:

       The first $1,000,000                                  1.00%
       On the next $1,000,000                                0.80%
       On the next $1,000,000                                0.75%
       On the next $2,000,000                                0.70%

For client relationships over $5,000,000, the following fee schedule is typically applied:

       The first $5,000,000                                  0.75%
       On the next $5,000,000                                0.55%
       On the next $5,000,000                                0.45%
       On the next $5,000,000                                0.35%
       Accounts over $20,000,000                             Negotiable

Advisory services may be subject to a $250 per quarter minimum.

Your investment advisory fees are directly debited from your accounts and authorization for
direct debit must be granted to us in writing. In addition to our reports, the custodian, usually
Charles Schwab, will directly provide you with monthly account statements which include advisor
fees debited. You have the option to elect to pay advisory fees directly to us and not have them
automatically deducted from your account.

Under some circumstances, hourly billing for services may be appropriate. Our current hourly
fee is $350 plus expenses.

Financial Planning Services

Fees for financial planning services are based on a current hourly rate of $350. A typical financial
plan may cost from $1,000 to $5,000. Fees for plans are based on the level of effort, expertise
and time required to complete the work and will depend on the complexity and scope of the
client assignment. Fees may be negotiable. A down payment of approximately 50% is requested
at the beginning of the engagement, with the balance due on completion and delivery of your
financial plan.

Other Fees

Advisory fees do not cover charges imposed by third parties for investments held in accounts,
such as contingent deferred sales charges or 12b-1 trails on mutual funds. In addition, each
mutual fund charges its own asset management fees, which are independent of the advisory fees
charged by us. The fees charged by such funds are disclosed in each fund’s prospectus.

The advisory fee also does not cover debit balances or related margin interest or SEC fees or
other fees or taxes required by law. Our fees are exclusive of, and in addition to, brokerage
commissions, transaction fees, and other related costs and expenses which might be incurred.

Termination of Contracts

The advisory agreement may be terminated by either party at any time by written notice. Fees
paid in advance will be prorated to the date of termination and any unearned portion of the fee
will be refunded to you.

Advisory agreements will not terminate in the event of your death, disability, or incompetence.
In such an event, your executor, guardian, attorney-in-fact, or other authorized representative
may terminate this agreement by giving written notice to us with such termination being
effective upon our receipt of such notice.

Item 7 – Types of Clients

We provide investment advisory services, personal financial planning and wealth management
to individuals, families (including their related entities, trusts and estates), pension and profit-
sharing plans, charitable organizations, and corporations. We require a minimum asset size for
new accounts of $1,000,000. At our sole discretion, accounts of lesser value may be accepted.