Jeffrey Matthews Wealth Management LLC

Item 5 – Fees and Compensation

The standard fee for JMWM’s Financial Planning Services is $200 per hour; however, this
fee is dependent on the complexity of the services provided and is negotiable. A flat fee
may also be negotiated in place of the hourly fee.

 Although the fees charged by JMWM are fully documented in the client’s written agreement
with JMWM, in general, for all advisory services other than the Financial Planning Program,
JMWM charges a management fee based solely on assets under management.

All of JMWM’s advisory services are charged the same rate, which may be negotiable, based
on the following assets under management categories:

               $ 25,000 - $ 499,999        1.5%
               $ 500,000 - $ 999,999       1.25%
               $1,000,000 and above        1.0%

JMWM advisory representatives earn a percentage of the fee charged by JMWM and do not
charge any fees in addition to those specified herein.

For accounts managed by an RBC Capital Markets Investment Manager, unless otherwise
specified, RBC will automatically deduct fees from the client account. RBC charges fees in

advance while JMWM charges fees in arrears for those accounts managed by JMWM. The
client has the option to deduct the funds from another account or to be billed directly. For
accounts managed by JMWM we will either charge the account or bill the client directly. Please
see Item 15 for more information regarding payment of management fees from client
accounts.

The Wrap Fee Program may cost the client more or less than purchasing or selling the selected
securities separately. Factors such as the types of securities purchased, the number of
securities purchased, and the frequency of trading will have a material effect on which pricing
structure is more advantageous to the client. Also, based on market and other conditions, the
fees associated with this program will fluctuate and may be more cost effective in one period
while they are more costly in others.

All mutual fund trades will be executed at the Net Asset Value (NAV) regardless of its
classification as a load or no-load fund. This means that JMWM will not earn any sales loads
or commissions on any mutual fund purchases. However, in addition to the advisory fees
noted above, JMWM may, in very rare circumstances, receive other service fees from mutual
funds companies commonly referred to as 12b-1 fees. These fees are typically .25%. JMWM
may also receive a finder’s fee (sales concession) of up to 1% on purchases of certain load
mutual fund investments as fully described in the fund’s prospectus, when a client’s total
holdings in each mutual fund family equal or exceed $1 million. Such finder’s fees are typically
earned on the purchase of load funds as fully disclosed in the fund’s prospectus. From time-
to-time load funds that pay the 1% finder’s fee may be purchased if a similar no- load fund is
not available, has not performed at an acceptable level, or any other reason that the advisor
and client agree is acceptable for the purchase. Any finder’s fees received will be applied to
the overall account fee schedule so that the total fees earned on the account will not exceed
the fee schedule noted above. The advisory fees noted above are subject to negotiation.

The client should be aware that a finder’s fee paid on a mutual fund purchase is not deducted
from the client’s investment. However, if that investment is sold prior to a stipulated date,
typically one year from the date of purchase, the client may be charged a 1% fee by the mutual
fund company as a liquidation fee. This “chargeback” scenario could create a conflict of
interest for the advisory representative. In certain investment climates, the advisory
representative may be inclined to sell a particular mutual fund investment based on market
conditions, but he may temper his investment decision based on his knowledge that such
liquidation could generate a 1% fee to the client. Since these mutual fund fees are dependent
on the funds purchased, the advisory representative will discuss such fees with the client at
the time the account is opened and/or at the time an affected mutual fund purchase is made.

Fees associated with the Money Manager Program will be deducted directly by the
independent money manager who will pay JMWM its portion of the fee earned. The fee charged

to the client will coincide with the rates noted above. Each independent money manager
charges different rates and JMWM will receive the difference between the rate charged to the
client and the rate paid to the money manager. Fees will be billed based on the requirements
of the money manager as disclosed in the money manager’s investment agreement.

JMWM will bill its advisory fees on a quarterly basis in arrears. Certain money managers
require that advisory fees be paid in advance. Clients will be notified when fees are charged
in advance and the client agreement will reflect this arrangement. Clients may elect to be
billed directly for fees or to have the fees directly debited from their client account. Fees shall
be determined based on total account values as of the end of the billing quarter or based on
the fee schedule provided by third party investment advisors.

Accounts initiated or terminated during a calendar quarter will be charged a prorated fee,
or other fee arrangement as provided by third party investment advisors. Upon termination
of any account, any earned, unpaid fees will be due and payable, and any fees received in
advance that are unearned will be promptly repaid within ten (10) business days. In addition,
when new client funds are added or when a client requests a distribution from an advisory
account, the quarterly advisory fee will be calculated on a prorated basis.

It is anticipated that all client accounts will be maintained at The Jeffrey Matthews
Financial Group, LLC (“JMFG”), a full-service securities broker-dealer registered with the
...

Item 7 – Types of Clients

JMWM provides the advisory services noted above to individuals, high net worth
individuals, pension and profit-sharing plan participant accounts, charitable institutions,
foundations, endowments, trust accounts and corporate accounts. There is no minimum
account size associated with JMWM wrap accounts. There is also no minimum account size
associated with Financial Planning services. RBC may require a $25,000 minimum account
size which may be waived at their discretion.