Morgan-Aly Wealth Management LLC

Item 5: Fees and Compensation
A. Fees Charged

All asset management clients will be required to execute an Investment Management Agreement that will describe
the type of management services to be provided and the fees, among other items. Clients are advised that they may
pay fees that are higher or lower than fees they may pay a different advisor for the same services and may in fact pay
lower fees for comparable services from other sources. At no time are clients required to engage or continue to
engage MAWM for asset management services.

Fees are negotiable and may be higher or lower than this range, based on the nature of the account. MAWM’s
standard advisory fee is based on a percentage of the assets under management and ranges from 1.00- 1.25% based
on the following fee schedule as follows:

                                                     Fee Schedule

                                  Total Value                       Annual Fee
                                  Up to $499,999                    1.25%
                                  Next $500,000 - $999,999          1.15%
                                  Next $1,000,000 - $1,999,999      1.00%
                                  Over 2,000,000                    Negotiable

B. Fee Payment

Asset management fees will be debited directly from each client’s account. The fee is paid quarterly, in advance, and
the value used for the fee calculation is the gross market value as of the last market day of the previous quarter. In
calculating the market value of a client’s assets, assets allocated to cash or a cash proxy, such as a money market
account, will be included in the calculation of assets under management. Once the calculation is made, we will instruct
your account custodian to deduct the fee from your account and remit it to MAWM’s.

Clients will provide written authorization to debit advisory fees from their accounts held by a qualified custodian
chosen by the client. The client will receive a statement from their account custodian showing all transactions in their
account, including the fee.

Fee Billing Example

To calculate advanced billing assumes a 360 day year and quarters lasting 90 days. Calculations are as follows: [Quarter
End Value x Advisory Account Fee] / 360 x 90 Days = Advance Billing [$300,000 x 1.25%] / 360 x 90 = $937.5
Quarterly Billing Adjustment Quarterly billing adjustments account for any deposits or withdrawals made during the
quarter. These adjustments ensure the client is only being charged for assets which have resided in their account over
time. In this example, the account had a $100,000 deposit on October 15th, $50,000 withdrawal on November 20th
and a $25,000 deposit on December 25th. To calculate the billing adjustments the number of days each deposit and
withdrawal was in the account must be determined.

The number of days for each deposit and withdrawal in this example are as follows; first deposit: 78 days, second
deposit 7 days, and the withdrawal 42 days. Calculations are as follows: [Deposit or Withdrawal x Advisory Account
Fee] / 360 x Prorated Days = Billing Adjustment 10/15 Deposit: [$100,000 x 1.25%] / 360 x 78 = $270.83 11/20
Withdrawal: [– $50,000 x 1.25%] / 360 x 42 = – $72.91 12/25 Deposit: [$25,000 x 1.25%] / 360 x 7 = $6.07 Total
Billing Adjustments = $270.83 – $72.91 + $6.07 = $203.99 Total Subsequent Billing Advanced Billing + Total Billing
Adjustments = Total Subsequent Billing $937.50 + $203.99= $1,141.49.

C. Other Fees

There are a number of other fees that can be associated with holding and investing in securities. You will be
responsible for fees including transaction fees for the purchase or sale of a mutual fund or Exchange Traded Fund,
or commissions for the purchase or sale of a stock. Expenses of a fund will not be included in management fees, as
they are deducted from the value of the shares by the Exchange Traded Fund or mutual fund manager. For complete
discussion of expenses related to each mutual fund, you should read a copy of the prospectus issued by that fund.
MAWM can provide or direct you to a copy of the prospectus for any fund that we recommend to you.

Please make sure to read Item 12 of this informational brochure, where we discuss broker-dealer and custodial issues.

D. Pro-rata Fees

If you become a client during a quarter, you will pay a management fee for the number of days left in that quarter.
If you terminate our relationship during a quarter, you will be entitled to a refund of any management fees for the
remainder of the quarter. Once your notice of termination is received, we will assess pro-rated fees for the number
of days between the end of the prior billing period and the date of termination to be paid in whatever way you direct
(check, wire).

E. Compensation for the Sale of Securities.

Professionals of MAWM’s do not receive commissions for the sales of securities or other investment products.

Item 7: Types of Clients
We provide services to individuals and in very limited cases, small corporations. When clients seek to engage us for
asset management, we generally require a minimum account value of $250,000. This minimum may be waived at the
discretion of the adviser. In some cases, MAWM may accept smaller accounts of family members of current clients,
in which case the minimum is $50,000.