Sherrill & Hutchins Financial Advisory Inc

Item 5 - Fees and Compensation

General Fee Information
Fees paid to us are exclusive of all custodial and transaction costs you pay to your custodian, brokers
or other third-party consultants. Please see Item 12 - Brokerage Practices for additional

information. Fees paid to us are also separate and distinct from the fees and expenses charged by
mutual funds, ETFs (exchange traded funds) or other investment pools to their shareholders
(generally including a management fee and fund expenses, as described in each fund’s prospectus or
offering materials). You should review all fees charged by funds, brokers, us and others to fully
understand the total amount of fees you pay for investment and financial-related services.

We do not use margin as an investment strategy. However, you may elect to borrow funds against
your investment portfolio. For accounts with a margin balance, you are assessed the management fee
based on the gross value of the assets in your account. In other words, your account value on which
the fee is calculated is not reduced by the margin balance. This could create a conflict of interest
where we may have an incentive to encourage the use of margin to maintain a higher market value
and therefore receive a higher fee.

We may, at our discretion, make exceptions to the following fee arrangements or may negotiate
special fee arrangements where we deem it appropriate under the circumstances. Therefore, some
clients may pay more or less than other clients for the same management services, depending, for
example, on account inception date, number of related investment accounts or total assets under
management. Further, some clients’ fee schedules and methods of billing are based on prior
contractual arrangements and/or historical fee schedules that differ from our current fee
arrangements.

Wealth Management Fees
Portfolios in our Wealth Management Program are subject to a minimum portfolio value of
$1,000,000. The annual fee, based on a percentage of assets under management, is a blended rate
calculated on the following fee schedule:

       First $1,000,000                1.00%
       Next $4,000,000                 0.75%
       Balance over $5,000,000         0.50%

In the few instances when clients elect to forgo Financial Planning Services, the fee for Wealth
Management services may be reduced, depending on the specific circumstances and at our sole
discretion.

Fees are generally payable quarterly, in advance based on a percentage of assets under management,
and calculated based on the average daily balance of the client’s investment accounts for the previous
calendar quarter. Fees for a partial quarter at the commencement of an agreement will be prorated
based on the number of days the account was managed during the applicable quarter. With your
authorization and unless other arrangements are made, fees are normally debited directly from your
account(s).

Fees for held away accounts (e.g., 401(k), 403(b), 529 plans) using Pontera’s platform will typically
be deducted from a client’s taxable/non-retirement account or will be directly invoiced to you.

Either of us may terminate our Investment Advisory Agreement at any time, subject to any written
notice requirements in the agreement. In the event of termination, any paid but unearned fees will
be promptly refunded to you based on the number of days that the account was managed, and any
fees due to us from you will be invoiced or deducted from your account prior to termination.

Financial Planning Fees
When we provide financial planning services on a stand-alone basis, our planning fee is typically
$2,500 for the initial plan. In some cases, the fee may be higher, or we may charge an hourly rate of
$350. Factors affecting the fee include the nature and complexity of your investments (taxable, tax-
deferred, proprietary products, individual stocks, privately held businesses, etc.) and the complexity
of your overall financial situation (marital status, family situation, sources of income, etc.). Your
specific fee arrangement will be set forth in your agreement with us. If you retain us for investment
management services within three months of concluding the planning engagement, we will credit the
amount of your financial planning fee to your management fees.

We require a $350 non-refundable deposit to begin the financial planning process. The remainder of
the planning fees are payable upon delivery of the financial plan. Should you elect to terminate the
financial planning agreement before your financial plan is completed and presented, you will be
assessed a pro-rata fee reflecting the degree to which the plan is complete or based on the number
of hours spent, as applicable to the arrangement.

Estate Distribution Services Fees
Our fee for estate distribution services is typically $1,500. In some cases, the fee may be higher
depending on the overall complexity of your situation. Your specific fee arrangement will be set forth
in your agreement with us. Fees are payable upon conclusion of the services. Should you elect to
terminate the estate distribution engagement before the services are completed, you will be assessed
a pro-rata fee reflecting the degree to which the services have been completed or number of hours
spent, as applicable to the arrangement.

Trading and Administration Services
Our fee for trading and administrative services ranges up to $5,000 annually based on the amount of
trading anticipated and the client’s servicing needs. Fees are generally payable quarterly, in advance.
If services begin after the start of a quarter, fees will be prorated accordingly. With your authorization
and unless other arrangements are made, fees are normally debited directly from your account(s).
Either of us may terminate our Investment Advisory Agreement at any time, subject to any written
notice requirements in the agreement. In the event of termination, any paid but unearned fees will
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Item 7 - Types of Clients

We serve individuals, pension and profit-sharing plans, trusts, estates, and not-for-profit
organizations. You must have $1,000,000 in investable assets to participate in our Wealth
Management Services. Under certain circumstances and in our sole discretion, we may negotiate such
minimums.