Laurel Wealth Advisors LLC

Item 5: Fees and Compensation

Method of Compensation and Fee Schedule
ASSET MANAGEMENT
LWA offers direct asset management services to advisory Clients. LWA charges an annual
investment advisory fee based on the total assets under management on the following schedule:

                    Assets Under Management ($)              Annual Rate (%)
                               All Assets                      Up to 1.00%
The annual fee is negotiable based upon certain criteria (e.g., historical relationship, type of assets,
anticipated future earning capacity, anticipated future additional assets, dollar amounts of assets
to be managed, related accounts, account composition, negotiations with Clients, etc.). Fees are
billed quarterly in advance based on the amount of assets managed as of the close of business on
the last business day of the previous quarter. If margin is utilized, the fees will be billed based on
the net asset value of the account.
Lower fees for comparable services may be available from other sources. Clients may terminate
their account within five (5) business days of signing the Investment Advisory Agreement with no
obligation and without penalty. After the initial five (5) business days, the agreement may be
terminated by LWA with thirty (30) days written notice to Client and by the Client at any time
with written notice to LWA. No fee adjustment will be made for account deposits and/or
withdrawals during a billing period. For accounts opened mid-billing period, fees are not charged
until the first full quarter. The partial quarter is not billed for the initial account opening. For
accounts that close mid-billing period, fees will be prorated based on the days’ services were
provided during the given period, and all prepaid unearned fees will be refunded promptly. If

services were provided and the fees were not prepaid, the Client is responsible for the days’
services were provided and for which fees were not paid. Clients shall be given thirty (30) days
prior written notice of any increase in fees. Any increase in fees will be acknowledged in writing
by both parties before any increase in said fees occurs.

Client Payment of Fees
Fees for asset management services are:
       •   Deducted from a designated Client account. The Client must consent in advance to
           direct debiting of their investment account.

Additional Client Fees Charged
Custodians may charge transaction fees and other related costs on the purchases or sales of
mutual funds, equities, bonds, options and exchange-traded funds. Mutual funds, money market
funds and exchange-traded funds also charge internal management fees, which are disclosed in
the fund’s prospectus. Margin interest may also apply for Clients electing to utilize margin on their
account(s). LWA does not receive any compensation from these fees.
All of these fees are in addition to the management fee you pay to LWA. For more details on the
brokerage practices, see Item 12 of this brochure.

Prepayment of Client Fees
LWA does not require any prepayment of fees of more than $1,200 per Client and six months
or more in advance.
Investment management fees are billed quarterly in advance.
If the Client cancels after five (5) business days, any unearned fees will be refunded to the Client,
or any unpaid earned fees will be due to LWA.

External Compensation for the Sale of Securities to Clients
LWA does not receive any external compensation for the sale of securities to Clients, nor do any of
the investment advisor representatives of LWA.

Item 7: Types of Clients

Description
LWA generally provides investment advice to individuals, high net worth individuals, charitable
organizations, corporations or business entities. Client relationships vary in scope and length of
service.

Account Minimums
LWA does not require a minimum investment to open or maintain an account.