Smith Financial Investment Advisors Inc

Item 5 – Fees and Compensation

All fees are subject to negotiation.

The specific manner in Smith Financial charges fees is established in a client’s written agreement with Smith
Financial. Smith Financial will generally bill its fees on a quarterly basis in advance. Clients may also elect to be
billed directly for fees or to authorize Smith Financial to directly debit fees from client accounts. Smith Financial
will prorate management fees for each capital contribution and withdrawal made during the applicable calendar
quarter (with the exception of de minimis contributions and withdrawals). Accounts initiated or terminated during
a calendar quarter will be charged a prorated fee. Upon termination of any account, Smith Financial will
promptly refund any prepaid, unearned fees, and any earned, unpaid fees will be due and payable. Our fees for
each offered service are explained in more detail below.

ADVISORY SERVICES AND FEES

Smith Financial’s fees for investment supervisory services are generally a percentage of assets, charged quarterly,
in advance, based on market value of managed accounts at the end of the previous quarter. Such asset-based fees
may not exceed 2.50% of managed assets.            If an account is opened or additional assets are deposited in or
transferred to a client account after the beginning of a quarter, fees are assessed on a prorated basis on the market
value of the assets at the time of funding reflecting the number of days remaining in the calendar quarter.

Our general fee schedule for these investment advisory services is as follows:

                         First $1,000,000 of assets managed                      1.0%
                         next $1,000,000                                         0.50%
                         next $1,000,000                                         0.40%
                         assets exceeding $3,000,000                             0.25%

For example, a client that invests $1,500,000 with Smith Financial would pay an (annualized) asset management
fee of $12,500, or 0.83% ($10,000 on the first $1,000,000, and $2,500 on the next $500,000).

RETIREMENT PLAN CONSULTING

Smith Financial’s ongoing fees for investment supervisory services, administration, employee enrollment and
education, plan design review, vendor and service provider analysis, fiduciary investment review and
recommendation, development of investment policy statement, and investment committee/fiduciary education and
consultation to retirement plans are generally a percentage of plan assets, charged quarterly, in advance, not to
exceed 2.50% of plan assets. In circumstances where appropriate, Smith Financial may charge a flat negotiated
fee, disclosed upfront and due in advance.

Fees are customized by client, based on factors such as number of tasks, complexity of work and number of
participants; Smith Financial does not have a standardized fee schedule.

INVESTMENT ADVICE THROUGH CONSULTATIONS & ADVICE NOT INVOLVING SECURITIES

Fees for other financial, estate and insurance planning services are generally flat, negotiated fees, payable in
advance. We have no standardized fee schedule; fees are negotiated based on factors such as complexity of work,
number of tasks and time required.

Smith Financial’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which shall be incurred by the client. Clients may incur certain charges imposed by custodians, brokers,
third party investment and other third parties such as fees charged by managers, 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 funds 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 Smith Financial’s fee, and Smith Financial shall not receive any portion of these
commissions, fees, and costs.

Item 12 further describes the factors that Smith Financial considers in selecting or recommending broker-dealers
for client transactions and determining the reasonableness of their compensation (e.g., commissions).

Item 7 – Types of Clients

Smith Financial provides portfolio management and financial, insurance and estate planning services to
individuals, high net worth individuals, corporate, non-profit and governmental pension and profit-sharing plans
and charitable institutions, foundations, endowments.