Morton Wealth Advisors

Item 5 – Fees and Compensation

MWA provides investment advisory services for a percentage of the assets managed or advised on.
Management fees typically start at 1% of assets under management, however the fee may be higher or lower
based upon the amount of the assets and the scope of the management services provided. All clients are
informed of fee arrangement prior to signing any agreement. At the beginning of each quarter MWA charges
a fee for the upcoming quarter. If a client terminates his or her agreement with MWA prior to the end of a
quarter, a pro rata portion of the management fee will be refunded. We normally deduct our fees from client
accounts.

Clients may pay a broker-dealer transaction fee or commission for buying or selling securities. See Item 12
below. These commissions, mark-ups and mark-downs will be paid directly from your account to the
broker-dealer who completes the purchase or sale. The purchase and sale of ETFs and certain mutual funds
may also involve a broker’s fee. In addition, mutual funds charge management fees, fund expenses, and
possibly a distribution fee in their net price. Such expenses and fees are described in their prospectuses.

Certain clients of MWA have elected to have access to performance reporting technology offered by a third
party. The $75 annual account maintenance fee is paid by each applicable client to MWA and MWA in
turn, pays the full amount of such fee to such third party on behalf of the client. No portion of such fee
inures to the benefit of MWA or its principals.

Item 7 - Types of Clients

MWA provides investment advice and investment management services to: Individuals, Pensions/Profit
Sharing Plans, Trusts, Estates, and Charitable Organizations. The minimum account size for opening an
account with us is typically $500,000.

Item 8 - Method of Analysis, Investment Strategies, Risk of Loss

In order to determine a suitable course of action for a client, we perform a review of variables presented on
a customized basis. The review may include investment objectives, income and tax status, personal and
business assets, risk profile, liquidity needs and constraints and other relevant factors. After analyzing the
variables and assets presented, an investment plan will be outlined to the client which can be implemented
at MWA. MWA uses various internal and external research and third-party vendor products to manage
assets. Examples of third-party sources used to assist in managing assets include S&P Research,
Bloomberg, Morningstar, Yahoo Finance various ETF and securities screens, news services and
statistical ratings organizations, Money Tree Financial Planning Software, money.net, Moody’s Research.

Investing in securities involves risk of loss that clients should be prepared to bear. This includes the risk of
capital (invested amount) and any profits that have been realized. Stock and bond markets may fluctuate
substantially over time, and the performance of any investment is not guaranteed.

Our investment strategies may not achieve their objectives and may not be intended to be a complete
investment program.

The principal risks of our portfolios are:

•   Market Risk

•   Equity Securities Risk

•   Fixed income risk (including issuer default risk, interest rate risk, duration risk)

•   Turnover Risk