MW Investment Strategy

ITEM 5: FEES AND COMPENSATION
Advisory Fees & Billing Practices

Fees for investment management services are calculated as a percentage of assets under management.
These fees are billed at the end of each quarter, based on the assets under management as of the last day
of the calendar quarter. Our standard fee schedule is a maximum fee of 1.50%.

Consulting services may also be provided at the rate of $325 per hour.

Fees are negotiable based on the scope and complexity of services provided to clients. At our sole
discretion, MWI may waive its minimum fee during a client's initial year with our firm.

We generally require that you provide authorization for us to deduct our fees directly from your
investment account. Important information about the deduction of management fees:

    •    You must provide authorization for us to deduct fees by initialing the appropriate section of
         our contract.

    •    We will mail a detailed invoice each quarter which outlines our fees and how they are
         calculated at the same time we request payment from the custodian.

    •    You will receive a statement from your custodian which shows all transactions in the account
         and your holdings.

    •    You are responsible for reviewing the accuracy of the fees being billed, as the custodian will
         not do so.

In limited circumstances we may agree to allow clients to pay by check rather than deducting payment
directly from the client account.

If you would like to end our advisory relationship, you may do so by providing 30 days written notice. We
will prorate the advisory fees received through the termination date and send you an invoice for the
advisory fees due.

Other Costs Involved

In addition to our advisory fee shown above, you are responsible for paying fees associated with investing
for your account. These fees include:

    •    management fees for ETFs and mutual funds. These are fees charged by the managers of the
         ETF or mutual fund and are a portion of the expenses of the ETF or mutual fund.

    •    brokerage costs and transaction fees for any securities, fixed income trades, or mutual funds (if
         applicable). These are generally charged by your custodian and/or executing broker.

Additional information about brokerage costs and services is provided in “Item 12: Brokerage Practices.”

We believe the fees mentioned above are competitive; however, you may be able to obtain similar
services from other sources at a lower price.

ITEM 7: TYPES OF CLIENTS
Our clients are both employed and retired; working couples with children and single persons; small business
owners, and professionals. Our clients reside principally in California, although we have client relationships
in New York and in other states.

Generally, we require that you maintain $500,000 under management with us. However, we may waive that
minimum at our sole discretion.