Pavlic Investment Advisors Inc

Item 5. Fees and Compensation

Fees paid to Pavlic Investment Advisors, Inc. are for our advisory services described above only. Our fees
do not include, for example, the fees charged by third parties, such as third-party managers or accountants

and attorneys assisting with providing the client with accounting and legal advice. Our preferred Custodian,
Charles Schwab & Co., Inc. (“Schwab”), was chosen based on their low transaction fees and access to mutual
funds and ETFs. Pavlic will never charge a premium or commission on transactions beyond the actual cost
imposed by Custodian. See Item 12, Brokerage Practices, for more information.

Prospective clients should be aware that, in addition to our advisory fee, each exchange-traded fund and
mutual fund in which a client’s assets are invested also pays its own advisory fees and other internal expenses
which are deducted from the fund’s reported performance. We do not accept compensation for the sale of
securities or other investment products.

As compensation for our services, our fee will normally be paid quarterly at the beginning of the quarter in
which our services are performed and will be calculated as a percentage of the fair market value of the client’s
account at the beginning of each such quarter. Fees are typically billed to the account’s custodian who pays
us directly from the client’s account. Our fee structure is clearly defined in our Investment Management
Agreement that each client signs before our services can begin. Our basic fee schedule for all management
programs is as follows:

                        Market Value of Portfolio               Annual Fee
                        First $1 million                        1.00% (0.25% per quarter)
                        $1 million - $2 million                 0.90%
                        $2 million - $5 million                 0.75%
                        $5 million and more                     0.50%

The investment advisory agreement may be terminated by either us or the client upon giving written notice
to the non-terminating party. In the event of termination, refunds are given on a prorated basis based on
the number of days remaining in a quarter at the point of termination. Fees that are collected in advance
will be refunded based on the prorated amount of work completed up to the day of termination within the
quarter terminated. The refunded fee will be the balance of the fees collected in advance minus the daily
rate times the number of days in the quarter up to and including the day of termination. For new accounts,
when assets are received in the middle of the quarter, fees will be pro-rated. This pro-ration will be based
on the fair market value of the assets received and the number of days remaining in the quarter during which
the assets were under our management.

Our target minimum household relationship size is $500,000. In certain limited situations where
circumstances warrant, we may waive the minimum account balance and/or modify the above fee schedule
if the client negotiates different terms and conditions.

In addition to its customary advisory relationships, Pavlic Investment Advisors, Inc. has and may provide
investment advice to other advisors or parties for a fixed fee or under terms other than those provided on
its basic fee schedule. The nature and scope of the advice to be provided and the fee to be paid are negotiable.

Unless a client has received the firm’s disclosure brochure at least 48 hours prior to signing the investment
advisory contract, said contract may be terminated by the client within five (5) business days of signing the
contract without incurring any advisory fee.

Item 7. Types of Clients

Pavlic Investment Advisors provides investment advice and/or management supervisory services to
individuals, high-net-worth individuals, charitable organizations, and pension and profit-sharing plans (other
than plan participants).

We require a minimum opening account balance of $500,000, although under certain circumstances, we
may, at our sole discretion, waive this minimum.