Mendoza Private Wealth Inc

Item 5 Fees and Compensation

Asset Management Fees
Pursuant to an investment advisory contract signed by each client, the client will pay Mendoza
Private Wealth an annual management fee, payable quarterly in advance, based on the value of
portfolio assets of the account managed by the Advisor as of the opening of business on the first
business day of each quarter. New account fees will be prorated from the inception of the account
to the end of the first quarter.

             Assets Under Management            Annual Fee
             Less than $500,000                    1.50%
             $500,001 - $2,000,000                 1.20%
             $2,000,001 - $3,000,000               1.10%
             $3,000,001 - $5,000,000               1.00%
             $5,000,001 - $10,000,000              0.90%
             $10,000,001 - $20,000,000             0.80%
             Over $20,000,000                      0.70%

Fees will be calculated on a blended tier schedule. For example, a $2,500,000 account fee would
be calculated annually as follows: ($500,000 x 1.50%) + ($1,500,000 x 1.20%) + ($500,000 x
1.10% = ($7,500 + $18,000 + $5,500) = $31,000. These fees may be negotiated at the sole
discretion of the Advisor. Asset management fees will be directly deducted from the client account
on a quarterly basis by the qualified custodian. The client will give written authorization
permitting the Advisor to be paid directly from their account held by the custodian. The custodian
will send a statement at least quarterly to the client and the Advisor will also send an invoice to
the client outlining the fee calculation and time period covered, and the amount withdrawn from
the client account each time the fee deduction invoice is sent to the qualified custodian. Where
it is not practical to deduct fees directly from client accounts, client will be sent an invoice at the
beginning of each quarter. The invoice is payable upon receipt.

Hourly Fee
Some clients will contract to have investment management advice and/or financial planning advice
provided based on an hourly fee rather than based on the assets under management. The Advisor’s
hourly fee will be billed at a rate of $500 per hour, but may be negotiated in advance. The
Advisor’s hourly fees will be negotiated and agreed upon by the parties in advance. Hourly fee
clients are billed half of the fee (based on an estimate of the hours required) in advance, and the
remainder upon completion of work performed.

Fixed Fees
Mendoza Private Wealth will charge a fixed fee for comprehensive financial planning services of
up to $30,000 per plan. The fee will depend on factors such as the complexity of the client’s

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financial situation, and the scope of the services required to complete the plan. Fixed fees may be
negotiated at the discretion of the Advisor. Fixed fee clients are billed half in advance, and the
remainder on completion of the work and delivery of the plan. All work will be completed and
plans delivered within six months of commencement of the engagement.

All fees paid to Mendoza Private Wealth for investment management services are separate and
distinct from the expenses charged by exchange traded funds to their shareholders. These fees and
expenses are described in each fund’s prospectus. These fees will generally include a management
fee and other fund expenses. Client is responsible for all custodial and securities execution fees
charged by the custodian and executing broker-dealer. The Advisor’s fee is separate and distinct
from the custodian and execution fees.

At no time will Mendoza Private Wealth accept or maintain custody of a client’s funds or securities
except for authorized fee deduction.

Mendoza Private Wealth’s fees are payable in advance. Upon termination, any fees paid in
advance will be prorated to the date of termination and any unearned fees will be refunded to client.

Where acting in the capacity of an insurance agent, investment advisor representatives (IARs) of
Mendoza Private Wealth may effect insurance transactions for typical and customary
compensation. This practice presents a conflict of interest by creating an incentive to recommend
investment products based on the compensation received, rather than on a client’s needs. Clients
of Mendoza Private Wealth are not required to utilize the IARs in their capacity as insurance agents
for the purchase of investment products. Mendoza Private Wealth has established a Code of Ethics
to address conflicts of interest. See the response to Item 11 below for more information on the
Code of Ethics. A client may be able to invest in products recommended by the firm directly,
without the services of Mendoza Private Wealth. In that case, the client would not receive the
services provided by Mendoza Private Wealth which are designed, among other things, to assist
the client in determining which products or services are most appropriate to each client’s financial
condition and objectives. Clients should be aware that commissions from the sale of investment
products does not represent 50% or more of the revenues received by Mendoza Private Wealth.
Mendoza Private Wealth does not charge advisory fees on client assets invested in insurance
products.

Item 7 Types of Clients

The Advisor will offer its services to individuals, pension and profit-sharing plans, trusts, estates,
charitable organizations, corporations and other business entities.

The Advisor’s cumulative minimum account requirement for opening and maintaining an account
is $1,000,000. However, the Advisor may accept accounts with a lower value at its sole discretion.

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