Morris Financial Concepts Inc

Item 5 – Fees and Compensation

5.A. Advisory Compensation

   MFC’s fees are described below and in greater detail in the relevant client agreement.
   MFC reserves the discretion to negotiate and/or waive client fees. Either MFC or client
   may terminate the signed agreement for advisory services upon written notice at any
   time. All advisory and management services will cease 30 days after written notice has
   been received by either party. Upon termination of any account, any prepaid, unearned
   fees will be promptly refunded.

   Financial Planning Agreement Fees: Fees are assessed according to the breadth and
   complexity of the client’s situation and stated objectives. The minimum fee under MFC’s
   one-year financial planning services agreement is $8,500. One-quarter of the fee is due at
   the time a Financial Plan Agreement is signed and the remaining fee will be prorated and
   charged on a monthly or quarterly basis, in advance. MFC may, in its sole discretion,
   negotiate a fee less than the stated minimum based upon certain criteria (i.e., anticipated
   future earning capacity, related existing client relationships, pre-existing client, pro bono
   activities, etc.). Fees are billed directly to the client. The client may make additions to and
   withdrawals from the account at any time, subject to MFC’s right to terminate an account.

   Total Service Agreement Fees: Fees are specified in our Total Service Agreement. MFC’s
   annual management fee for investment advisory services shall be prorated and billed on
   a quarterly basis, in advance, based upon a percentage (%) of the market value of the
   assets under management on the last business day of the previous quarter as valued by
   the Custodian, in accordance with the fee schedule below.

                               Assets                    Annual Fee
                Up to $1,000,000                               1.00%
                Assets from $1,000,000 to $4,999,999           0.80%
                Assets from $5,000,000 to $9,999,999           0.60%
                Assets above $10,000,000                       0.40%

The Fee schedule above is tiered so that assets at each level are charged the
corresponding fee. Adviser’s fee for the initial quarter will be calculated on a pro rata
basis as of the initial date Assets become available for management. Accounts managed
under this agreement are subject to a minimum annual fee of $8,500.

Investment Advisory Agreement Fees: Fees are specified in our Investment Advisory
Agreement. MFC’s annual management fee for investment advisory services shall be
prorated and billed on a quarterly basis, in advance, based upon a percentage (%) of the
market value of the assets under management on the last business day of the previous
quarter as valued by the Custodian, in accordance with the fee schedule below.

                               Assets                    Annual Fee
                Up to $1,000,000                               1.00%
                Assets from $1,000,000 to $4,999,999           0.80%
                Assets from $5,000,000 to $9,999,999           0.60%
                Assets above $10,000,000                       0.40%

The Fee schedule above is tiered so that assets at each level are charged the
corresponding fee. Adviser’s fee for the initial quarter will be calculated on a pro rata
basis as of the initial date Assets become available for management.

No increase in the annual fee percentage shall be effective without prior written
notification to the Client. MFC may, in its sole discretion, negotiate a fee less than the
stated minimum based upon certain criteria (i.e., anticipated future earning capacity,
related existing client relationships, pre-existing client, pro bono activities, etc.).

Fees are billed directly to the client. In the event that there is not sufficient cash in the
account to pay Adviser’s fee, the Adviser shall sell assets to pay the fee. The client may
make additions to and withdrawals from the account at any time, subject to MFC’s right
to terminate an account.

Termination of the Financial Planning Agreement: The client has five (5) business days
from the date of the contract execution to terminate MFC’s Planning Services without
penalty. The Financial Planning Agreement may be terminated at any time upon receipt
of written notice to terminate by either party to the other. Termination of the
Agreement will not affect (a) the validity of any action previously taken by MFC or the

   client’s obligation to pay MFC fees that have already been earned.

   However, MFC designs its portfolios as long-term investments and asset withdrawals may
   impair the achievement of a client’s investment objectives.

   Hourly Financial Planning Agreement: Occasionally, but very seldom, services may be
   engaged at an hourly fee. MFC typically charges a rate $100 – $400 per hour depending
   on the experience level of the professional doing the work and the extent of services
   involved such as financial planning, investment analysis, and administrative work. MFC
   employs direct billing to collect client fees and has obtained the clients written consent
   for such purposes. There is no minimum number of hours to purchase when signing the
   hourly financial planning agreement.

   In circumstances where the scope of a client’s needs are simplistic in nature, requiring
   only minimal hours of MFC’s services on an annual basis, MFC may recommend the
   client convert their existing, low-hourly agreement to a limited-in-scope financial
   planning agreement. Under this limited financial planning agreement, the client’s needs
   would not merit a full financial planning agreement; therefore, MFC reserves the right to
   waive the account minimum of $8,500 generally required under MFC’s Financial
   Planning Agreement, as noted above.

   Pension Consultant Services Fees: MFC charges .75% on 401k plans. This fee will be
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Item 7 – Types of Clients

MFC offers comprehensive Financial Planning and Investment Management
services to individuals, pension and profit-sharing plans, trusts, estates, charitable
organizations, corporations and business entities.

MFC does not have minimum account size requirements, but may charge minimum
fees as described below:

   •   Financial Planning Services - The minimum fee for financial planning services is
       $8,500.
   •   Total Services Management - MFC shall charge either an annual fee based
       upon a percentage of the market value of the assets being managed by
       MFC, or a negotiated fee starting at a minimum $8,500.
   •   Hourly Financial Planning Services - MFC charges a rate of $100 – $400 per
       hour.
   •   Wrap Fee Program - Participation in MFC’s wrap fee program is subject to
       certain minimum requirements. To participate in this program an
       individual client or household must have a “Total Service Agreement”
       (“TSA”) with MFC and pay a minimum of $10,000 per year in fees. For
       more information, please see Item 5 of MFC Wrap Fee Program Brochure.
   •   Pension Consulting Services - MFC charges .75% on 401k plans. The only
       fee MFC will receive will be for assets under management.

MFC, in its sole discretion, may waive or reduce its minimum requirements or charge a
lesser investment management fee based upon certain criteria (i.e. anticipated future
earning capacity, anticipated future additional assets, dollar amount of assets to be

managed, related accounts, account composition, negotiations with client, etc.).