STW Associates

Item 5 – Fees and Compensation

STW Associates charges a retainer for its financial planning and investment management
services. The retainer, agreed to in writing by the client and the firm, is dependent on many
factors including the complexity of the client’s situation, the client’s income, net worth and
investment asset base. The retainer is generally in effect for a 12-month period after which
time a new retainer amount may be agreed upon. The retainer covers the financial planning
and investment management services performed by STW Associates for the client. All fees
are subject to negotiation.

STW Associates bills its retainer on a quarterly basis at the end of the quarter, i.e. in
arrears. Clients generally authorize STW Associates to directly debit fees from their
accounts. Upon termination of any account, any prepaid, unearned fees will be promptly
refunded and any earned, unpaid fees will be due and payable.

STW Associates’ 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 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 STW Associates’ fee, and STW Associates
does not receive any portion of these commissions, fees, and costs. See Item 12 for

Item 7 – Types of Clients

STW Associates generally provides financial planning and investment management
services to individuals. Virtually all clients are high net worth individuals. By design, STW
Associates has a limited clientele, numbering less than twenty. The firm is not actively
seeking new clients.