Hughes Warren Inc

Item 5 Fees and Compensation
Wealth Planning Services
Our fee for portfolio management services is based on a percentage of your assets we manage and is
set forth in the following fee schedule:

Account Size                           Annual % Fee
$0-$250,000                            1.50%
$250,001-$1,000,000                    1.25%
$1,000,001-$2,000,000                  1.00%
$2,000,001 and above                   Negotiable

*Advisory fees of 2.00% and above are considered unreasonable, as it is excessive and above the
advisory fee customarily charged in the industry. Our advisory fees will never exceed 2.00%.

All fees are negotiable and the above schedule may be modified with the agreement of both Hughes
Warren, Inc. and the client. While we believe our fees our competitive, you may be able to obtain the
same or similar services from other advisory firms for less.

For our Wealth Management services, you will pay a management fee based on the market value of
the Account in accordance with the Schedule of Fees described above unless otherwise agreed to by

both parties. The Advisory Fee is payable quarterly in arrears. Our Advisory fees are in addition to any
fees assessed by the mutual funds your accounts are invested in. The percentage fee will be prorated
for any period of less than a quarter year, but a fee shall be due for each such quarter during any part
of which we are managing the Account. One fourth of the annual management fee will be charged
each quarter based upon the Account's market value at the end of the quarter. The management fee
may be deducted directly from your Account by the Custodian and automatically remitted to us. The
annual fee will be determined by multiplying the ending aggregate market value of the assets in the
Account at the end of each quarter by the annual fee. This amount is then multiplied by the actual
number of days in the quarter and then divided by the actual number of days in the year. You are
responsible for any management fee accrued from the beginning of the quarter to the date of
termination. Fees of sub-advisors are in addition to our standard fees.

The Custodian will send you a monthly or at least quarterly statement showing all amounts paid from
the Account, including all management fees paid by the Custodian to us. We encourage you to verify
the accuracy of the fee computations and acknowledges that the Custodian will not determine whether
the fee is properly calculated. You may elect to have the Advisory Fee billed directly to you. You agree
to pay all Advisory Fees within 30 days of the receipt of an invoice from us.

We will deduct our fee directly from your account through the qualified custodian holding your funds
and securities. We will deduct our advisory fee only when the following requirements are met:
    • You provide our firm with written authorization permitting the fees to be paid directly from your
      account held by the qualified custodian.

    • We send you an invoice showing the amount of the fee, the value of the assets on which the
      fee is based, and the specific manner in which the fee was calculated.

At our discretion, we may combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in your paying a reduced advisory fee
based on the available breakpoints in our fee schedule stated above.

Alternatively, if a client chooses only financial planning services, the services may include the
following: cash flow, tax analysis and planning, insurance analysis and planning, employee benefit
analysis and/or planning, business ownership issues, education planning, estate planning, and
retirement planning as well as budgeting and net worth and investment analysis and planning,
investment analysis and planning may include, but is not limited to, reviews of current holdings, risk
tolerance, asset allocation, historical performance, retirement projections and tax analysis. We will
collect pertinent data, conduct personal interviews with the Client and present selected report(s) to the
Client. In addition, we may arrange an hourly financial consultation wherein we will provide financial
consulting services. We charge an hourly rate for these services. This rate will apply to special
situations where the Client engages us for a limited time only and we do not directly manage the
Client's assets. We do not provide the Client with a written report.

This hourly rate is $150 or $250 with the following schedule of services:

$150 hourly rate - Cash flow, insurance analysis and planning, budgeting, debt counseling, education
planning.

$250 hourly rate - Tax analysis and planning, employee benefit analysis and/or planning, business
ownership issues, estate planning, retirement planning investment analysis and planning, investment
analysis and planning which may include but is not limited to reviews of current holdings, risk
tolerance, asset allocation, historical performance, retirement projections and tax analysis.

Hourly financial planning fees are due upon completion of services rendered. We will invoice you for
financial planning services.

You may terminate the Investment Advisory Agreement upon written notice to our firm. You will incur a
pro rata charge for services rendered prior to the termination of the Investment Advisory Agreement,
which means you will incur advisory fees only in proportion to the number of days in the quarter for
which you are a client.

We encourage you to reconcile our invoices with the statement(s) you receive from the qualified
custodian. If you find any inconsistent information between our invoice and the statement(s) you
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Item 7 Types of Clients
We offer investment advisory services to individuals, high net worth individuals, pension and profit
sharing plans, corporations, and other business entities.

In general, we require a Household minimum of $100,000 to open and maintain an advisory account.
At our discretion, we may waive this minimum account size. We may combine account values for you
and your minor children, joint accounts with your spouse, and other types of related accounts to meet
the stated minimum.