Global Wealth Management LC

ITEM 5 FEES AND COMPENSATION

Global Wealth Management, L.C. does not take custody of client’s funds. We impose no
minimum for opening and maintaining an account. We charge clients a maximum quarterly fee
of 0.3% of total assets under management in arrears, including cash positions. We may agree
to a lower fee schedule, in our sole discretion. No particular range for such lower fee
arrangement has been established by Global Wealth Management, L.C. at this time. Therefore,
clients with similar assets under management and investment objectives may pay higher or
lower fees than other clients. In addition, some clients pay more or less than others depending
on certain factors, including but not limited to the type and size of the account, the range of
additional services provided to the client and the total amount of assets managed for a single
client. While we believe our standard fees are reasonable, services similar to those provided by
us may be available for lower fees from other sources. The fees that we charge for investment
advisory services are specified in the agreement between GWM and each individual client.

Such fees shall be deducted from the client’s account quarterly when due. The fee will be
calculated based on the ending portfolio balance on the last day of the quarter as calculated by
the custodian. We send a billing statement to clients and to the custodian, which shows the
amount of the fees, the value of the assets on which the fees are based, and the manner in which
they were calculated. The advisor/client relationship may be terminated at any time
immediately upon written notice to the other party. If the advisor/client relationship is
terminated during the quarter, fees will be assessed on a pro rata basis.

You will pay other expenses in addition to investment management fees. For example, you will
typically pay costs such as brokerage commissions and equivalents, transaction fees, custodial
fees, transfer taxes, wire transfer fees, and other fees and taxes charged to brokerage and bank
accounts and securities transactions, which are unrelated to the fee collected by us (please
reference Item 12 for more information on our brokerage practices).

Open end mutual funds generally charge a management fee for their services, which are
disclosed in the fund’s prospectus and/or financial filings. In addition, mutual funds also may
charge an early termination fee if you sell your shares prior to the fund’s required holding
period. You should refer to the fund’s prospectus for specific information regarding early
redemption fees.