Modus Advisors LLC

Item 5: Fees & Compensation

Compensation for Our Advisory Services

Asset Management:

The maximum annual fee charged for this service will not exceed 1.20%. Fees to be assessed will be
outlined in the advisory agreement to be signed by the Client. Annualized fees are billed on a pro rata
basis monthly or quarterly in advance based on the value of the account(s) on the last day of the
previous month or quarter, as applicable. Mutual Fund investments held with American Funds are
billed in quarterly arrears. Fees are negotiable and will be deducted from client account(s).
Adjustments will be made for deposits and withdrawals during the quarter. Our firm bills on cash
unless otherwise noted in writing. In rare cases, our firm will agree to directly invoice. As part of this
process, Clients understand the following:

     a) The client’s independent custodian sends statements at least quarterly showing the market
        values for each security included in the Assets and all account disbursements, including the
        amount of the advisory fees paid to our firm;
     b) Clients will provide authorization permitting our firm to be directly paid by these terms. Our
        firm will send an invoice directly to the custodian, and
     c) If our firm sends a copy of our invoice to the client, a legend urging the comparison of
        information provided in our statement with that from the qualified custodian will be
        included.

For the sub-advisory services rendered to our clients, our firm compensates third-party investment
advisory firms or individual advisors a percentage of the overall investment advisory fee charged by
our firm. The advisory fee paid shall not exceed the fee published for this service. The terms and
conditions under which the client shall engage the third-party investment advisory firm or individual
advisors shall be set forth in a separate agreement between the client and the designated third party.

Comprehensive Portfolio Management:

The maximum annual fee charged for this service will not exceed 1.25%. Fees to be assessed will be
outlined in the advisory agreement to be signed by the Client. Annualized fees are billed on a pro rata
basis monthly or quarterly in advance based on the value of the account(s) on the last day of the
previous month or quarter, as applicable. Mutual Fund investments held with American Funds are
billed in quarterly arrears. Fees are negotiable and will be deducted from client account(s).
Adjustments will be made for deposits and withdrawals during the quarter. Our firm bills on cash
unless otherwise noted in writing. In rare cases, our firm will agree to directly invoice. As part of this
process, Clients understand the following:

     a) The client’s independent custodian sends statements at least quarterly showing the market
        values for each security included in the Assets and all account disbursements, including the
        amount of the advisory fees paid to our firm;
     b) Clients will provide authorization permitting our firm to be directly paid by these terms. Our
        firm will send an invoice directly to the custodian, and

ADV Part 2A – Firm Brochure                    Page 8                                    Modus Advisors, LLC

     c) If our firm sends a copy of our invoice to the client, a legend urging the comparison of
         information provided in our statement with that from the qualified custodian will be
         included.

For the sub-advisory services rendered to our clients, our firm compensates third-party investment
advisory firms or individual advisors a percentage of the overall investment advisory fee charged by
our firm. The advisory fee paid shall not exceed the fee published for this service. The terms and
conditions under which the client shall engage the third-party investment advisory firm or individual
advisors shall be set forth in a separate agreement between the client and the designated third party.

Financial Planning & Consulting:

Our firm charges on an hourly or flat fee basis for financial planning and consulting services. The total
estimated fee, as well as the ultimate fee charged, is based on the scope and complexity of our
engagement with the client. The maximum hourly fee to be charged will not exceed $300. Flat fees
range from $1,000 to $10,000. Our firm requires a retainer of 50% of the ultimate financial planning
or consulting fee at the time of signing. The remainder of the fee will be directly billed to the client
and due upon delivery of the financial plan or consultation. Our firm will not require a retainer
exceeding $1,200 when services cannot be rendered within 6 months.

Retirement Plan Consulting:

Our firm charges a fee based on the percentage of Plan assets under management for our Retirement
Plan Consulting service. The total estimated fee, as well as the ultimate fee charged, is based on the
scope and complexity of our engagement with the client. The maximum annual fee charged for this
service will not exceed 1.00%. The fee-paying arrangements will be determined on a case-by-case
basis and will be detailed in the signed consulting agreement.

Separately Managed Account Services:

Depending on the service utilized, program fees for the SMA services may be up to 3.00%. To calculate
your SMA program fee, Schwab multiplies the actual daily balance of your account by the daily pro
rata portion of the annual rate and then adds together the fees for each day of the month. The
program fee is billed to your account monthly, which may result in your paying a higher fee on an
annual basis than the annual rate due to the effects of compounding. Our asset management fee is
charged pro-rata quarterly in advance based on the value of your account on the last day of the
previous quarter.

Other Types of Fees & Expenses

Clients will incur transaction charges for trades executed by their chosen custodian via individual
...

Item 7: Types of Clients & Account Requirements

Our firm has the following types of clients:

  •    Individuals and High Net Worth Individuals; &
  •    Trusts, Estates, or Charitable Organizations
  •    Pension and Profit-Sharing Plans;
  •    Corporations, Limited Liability Companies, and/or Other Business Types

Our requirements for opening and maintaining accounts or otherwise engaging us:

ADV Part 2A – Firm Brochure                      Page 10                                Modus Advisors, LLC

  •    Our firm requires a minimum account balance of $250,000 for our Asset Management and
       Comprehensive Portfolio Management services. Generally, this minimum account balance
       requirement is not negotiable and would be required throughout the course of the client’s
       relationship with our firm. However, our firm maintains the authority to reduce and/or waive
       the minimum account balance requirements at its sole discretion.