Mitchell McLeod Pugh & Williams Inc

Item 5 – Fees and Compensation
Fees are charged quarterly in advance based on current market value as of the last day of the
quarter pursuant to the fee schedule adopted as a part of each client’s investment advisory
agreement. The firm has adopted an annual fee schedule for the management of stock and bond
portfolios as outlined below. This fee schedule is subject to negotiation.

Annual Fee Schedule for Securities Management:

Equity Portfolios                                  Fixed Income Portfolios
Market Value             Annual Fee                Market Value              Annual Fee
Up to $1MM               1.0%                      Up to $1MM                0.5%
Next $1MM                0.8%                      Next $1MM                 0.4%
Next $1MM                0.6%                      Next $1MM                 0.3%
All over $3MM            0.5%                      All over $3MM             0.25%

Cash & Cash Equivalents
Market Value          Annual Fee
All                   0.25%

For certain accounts, we charge a flat annual fee billed quarterly in advance. From time to time,
we are asked to render investment advice on a consulting basis. We also may from time to time
furnish financial advice to clients on matters not involving securities. Fees for these services are
individually negotiated and sometimes charged on an hourly basis.

We also provide general bookkeeping services to certain clients from time to time. Fees for
those services are negotiated on an individual basis.

In the event that a client terminates the investment advisory agreement with our firm prior to the
end of a quarter, the fee is pro-rated as of the date of the Effective Date of termination. The
Effective Date is defined as the point at which, following the receipt of notice of termination, our
firm (1) is asked to discontinue investment management, (2) is no longer involved in assisting in
the transition of the account in any extraordinary way to another investment firm, and (3) is no
longer required to provide any documentation to the client (other than cost basis and tax
information).

Clients may elect to be billed directly for fees or to authorize our firm to directly debit fees from
the client’s account. Management fees may be prorated when a substantial (more than 50% of
the portfolio’s market value) contribution is made to the account during the applicable calendar
quarter. Accounts initiated or terminated during a calendar quarter will be charged a prorated fee
for that quarter. Upon termination of any account, any prepaid, unearned fees will be refunded.

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Our fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which may be incurred by the client. Clients may incur certain charges imposed by
custodians and brokers, custodial fees, odd-lot differentials, transfer taxes, wire transfer and
electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions.
Mutual funds and exchange traded funds also charge internal management fees which are
disclosed in a fund’s prospectus. Such charges, fees and commissions are exclusive of and in
addition to our fee, and our firm does not receive any portion of these commissions, fees, and
costs.

Item 12 further describes the factors that we consider in selecting or recommending broker-
dealers for client transactions and determining the reasonableness of their compensation (e.g.,
commissions).

ITEM 7 – Types of Clients
We provide investment advisory services to individuals, high net worth individuals, corporate
pension, profit-sharing and 401-(k) plans, charitable institutions, foundations, endowments,
government entities, trusts and estates.