Powers Advisory Group LLC

Item 5: Fees and Compensation
Please note, unless a client has received the firm’s disclosure brochure at least 48 hours prior to
signing the investment advisory contract, the investment advisory contract may be terminated
by the client within five (5) business days of signing the contract without incurring any advisory
fees. How we are paid depends on the type of advisory service we are performing. Please
review the fee and compensation information below.

Investment Management Services
Our standard advisory fee is based on the market value of the assets under management and is
calculated as follows:
                Account Value                              Annual Advisory Fee
                $0 - $1,000,000                                   1.00%
            $1,000,001 and Above                                  0.50%

The annual fees are negotiable and are pro-rated and paid in advance on a quarterly basis. The
advisory fee is a blended fee and is calculated by assessing the percentage rates using the
predefined levels of assets as shown in the above chart, resulting in a combined weighted fee.
For example, an account valued at $3,000,000 would pay an effective fee of 0.67%. This is
determined by the following calculation: ($1,000,000 x 1.00%) + ($2,000,000 x 0.50%) =
$20,000.00. No increase in the annual fee shall be effective without agreement from the client
by signing a new agreement or amendment to their current advisory agreement.
Advisory fees are directly debited from client accounts, or the client may choose to pay by
check. Client may open an account at any time during a calendar quarter. Client’s initial fee
payment will be based on the market value of assets in Client’s Account at the end of the
month in which assets are first deposited in the account. Client will be billed for the remaining
full months during the quarter, if any, that services are provided. Advisor does not pro-rate
billing for partial months upon opening an account.

An account may be terminated with written notice at least 30 calendar days in advance. Upon
termination of the account, any unearned fee will be refunded to the client.

Investment Management Services of Held Away Assets Fees
The advisory fee for this service is a pro-rated annual fee of 0.75% and is calculated on the
account value as of the last day of the previous quarter. This fee will be assessed and billed
quarterly. If we only manage your assets for part of a quarter, the charge will be prorated and

billed for the remaining full months during the quarter. For example, an account valued at
$1,000,000 would pay an effective fee of 0.75% with the annual fee being $7,500 (a quarterly
fee of $1,875). Investment management fees are generally directly debited on a pro rata basis
from client accounts. The exception for this is directly managed held-away accounts, such as
401(k)s. As it is impossible to directly debit the fees from these accounts, those fees will be
assigned to the client’s managed account held at the Custodian, as determined by Client and
Advisor. If the client does not have a managed account, those fees will be billed directly to the
client. An account may be terminated with written notice at least 30 calendar days in advance.
Upon termination of the account, any unearned fee will be refunded to the client.

Financial Planning Fee
Financial Planning services are typically included in the Investment Management Services fee
described above. On occasion, our firm is asked to provide financial planning services for a
separate fee. The fixed fee for creating a client financial plan generally is $2,000. Fees are
charged in arrears upon completion. Fees are negotiable and will be documented in the
Financial Planning Agreement. Clients may terminate their contracts without penalty within five
business days of signing the advisory contract.

Powers Advisory Group, LLC offers the following financial planning services to each investment
management client free of charge; Retirement Planning, College Savings, Financial Goals, and
Investment Analysis, as described in Item 4 above. Non-investment management clients will be
charged the full $2,000 fixed fee for financial planning services, which does not include
investment recommendations. This fee is waived if the financial planning client becomes an
investment management client within six months of completion. Pension Consulting
Services Fees
The rate for pension consulting services is a mutually agreed upon fee and will be billed
quarterly. The fee is calculated on the plan assets for which we are providing such consulting
services, depending on the plan chosen. These fees are negotiable and paid either separately by
check from the employer or through expense in plan assets.

Other Types of Fees and Expenses
Our fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which may be incurred by the client. Clients may incur certain charges imposed by
custodians, brokers, and other third parties such as custodial fees, deferred sales charges, odd-
lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes
on brokerage accounts and securities transactions. Mutual fund and exchange traded funds
also charge internal management fees, which are disclosed in a fund’s prospectus. Such

charges, fees and commissions are exclusive of and in addition to our fee, and we shall not
receive any portion of these commissions, fees, and costs.
Item 12 further describes the factors that we consider in selecting or recommending broker-
dealers for client’s transactions and determining the reasonableness of their compensation
(e.g., commissions).

Item 7: Types of Clients
We provide advisory services to individuals, high net-worth individuals, and corporations or
other businesses.
Our minimum account size requirement is $100,000 and may be waived at our discretion.