Global Wealth Advisors LLC

ITEM 5: FEES AND COMPENSATION
FEES

Fees for services provided by Global Wealth Advisors are based on the type of engagement.

Asset Management Services

Fees for Asset Management Services are agreed upon at the time of engagement and are
based on the fee scale below:

Assets Under Management                          Annual Fee (invoiced quarterly)
Assets up to $500,000                                .90% on all assets
Assets over $500,000 up to $1,000,000                 .70% on all assets
Assets over $1,000,000 up to $1,500,000             .50% on all assets
Assets over $1,500,000                                   Negotiable

GWA’s fees are based upon a percentage of the assets under management and are invoiced
quarterly in arrears. Fees may be modified (higher or lower), based on unusual circumstances,
pre-existing relationships, or complex matters. GWA’s fee will also be dependent upon the
amount and nature of assets to be managed, required services, complexities, or other factors,
and at GWA’s discretion.

Fees are calculated at the end of each billing period based upon the portfolio’s market value on
the last trading day of the relevant billing period. The portfolio’s market value is determined by
the client’s selected custodial firm. Fees are due quarterly in arrears and may be billed to the
client or deducted from the managed account with the client’s written authorization. GWA’s
quarterly fee is determined by multiplying the portfolio balance on the last trading day of the
billing period by ¼ of the annual fee. A pro-rata fee is calculated for partial quarters for new or
terminated accounts, and pro-rata fee adjustments are made for cash flows of $1,000 or more
into or out of existing accounts.

During the course of an engagement, GWA reserves the right to modify the fee with 30 days
written notice where the nature and complexity of the portfolio or services to be provided are
modified. Clients are free to discontinue services at any time.

Financial Planning Services

Fees for Financial Planning Services are determined at the time of engagement and are based
upon the time and effort required and/or the nature and complexity of services. GWA’s fee
ranges from $150 to $250 per hour. For larger projects, the firm may propose a project-based
fee which will be calculated by multiplying GWA’s hourly fee by the proposed number of hours
required to complete the project taking into consideration the effort, scope of engagement and
complexity of services. Project-based fees are agreed to at the time of engagement.

GWA may require a retainer equal to ½ the proposed project fee in order to schedule services.
In these cases, the project balance is due upon the delivery of services. Should the client’s
condition change during the course of services such that new advice, re-evaluations,
recommendations, or research are required or GWA must re-work the advice, recommendations
or other services, additional fees may apply. The firm will not engage in additional services that
result in extra fees without the client’s approval. Payment for this service is made by check
payable to “Global Wealth Advisors LLC”.

Should either party terminate an engagement before completion, any unearned prepaid fees will
be refunded.

Retirement Plan Services

Fees for Retirement Plan Services are agreed upon at the time of engagement and are based
on the actual service provided and platform used. Fees charged by Global Wealth Advisors are
separate from fees which could be charged by outside retirement plan service providers.

Fees are based upon a percentage of a plan’s total assets and are due in arrears either monthly
or quarterly depending on the outside retirement plan service provider. Fees are calculated at
the end of each billing period based upon the applicable market values as reported by the
custodian on the last trading day of the relevant billing period. Fees are due in arrears and may
be billed to the client or deducted from the managed account with the client’s written
authorization. A pro-rata fee is calculated for partial periods.

OTHER COSTS

All fees paid to Global Wealth Advisors are separate and unrelated to any outside fees or
expenses. Such costs may include charges assessed by mutual funds or exchange traded
funds, trade commissions charged by an account custodian, etc. Information pertaining to fund-
generated fees and expenses can be found in mutual fund and exchange traded fund
prospectuses.

ITEM 7: TYPES OF CLIENTS AND MINIMUM CONDITIONS

Global Wealth Advisors provides services for individuals, estates, charitable organizations,
businesses, and retirement plans.

Minimum account size is generally $100,000, but exceptions may be made at our discretion.

    ITEM 8: METHOD OF ANALYSIS, INVESTMENT STRATEGIES AND
                         RISK OF LOSS

Global Wealth Advisors’ general investment strategy, consistent with the tenets of modern
portfolio theory, is to attempt to reduce risk and volatility by building globally diversified
portfolios.

To implement this strategy, Global Wealth Advisors primarily uses fundamental security
analysis. While mutual funds and exchange traded funds are the primary investment vehicles
used in or recommended for client accounts, we may also use or recommend various other
investment vehicles in the implementation of our strategies, including long-term purchases
(securities held at least a year), short-term purchases (securities sold within a year), trading
(securities sold with 30 days), margin and options.

Investing in securities involves risk of loss that clients should be prepared to bear. Such risks
include market risk, interest rate risk, currency risk, and political risk, among others. Certain
trading strategies can affect investment performance through increased brokerage and other
transaction costs. Each client’s propensity for risk however is thoroughly evaluated,
documented, and considered throughout the portfolio implementation process.

No investment strategy can assure a profit or avoid a loss.