Ward & Associates

Item 5 – Fees and Compensation

Our firm’s annual fee includes both financial planning and investment management services. We
do not accept commissions or any other compensation from third parties. In those circumstances
where third parties customarily rebate a portion of their fees or commissions to investment advisors,
amounts so received are credited directly to the client’s account.

Although most firms have a separate fee for the initial financial planning services, due to the amount
of time required, we absorb this cost in the interest of developing a long-term relationship.

Our firm typically receives compensation for investment advisory services based on a percentage
of account assets under management as outlined in the “Basic Fee Schedule” shown below.

    Basic Fee Schedule:

     Amount of Assets                                              Annual Fee
                                                                   Percentage
    On the first $1,000,000                                        1.00%

    $1,000,000 - $$4,000,000                                        0.75%

    $4,000,000 - $5,000,000                                         0.50%
    $5,000,000 - $10,000,000                                        0.35%

Fees for accounts greater than $20,000,000 are negotiable. Fees for accounts below $20,000,000 may
also be negotiable at Ward & Associates discretion.

Fees are payable quarterly in advance and are billed by the 15th day of the first month of the quarter
with payment due by the 25th day of the first month of the quarter. The value of assets under
management is determined by computing the market value of the portfolio as of the close of trading
on the last business day of March, June, September and December. The fee for the following quarter
is then calculated by multiplying the portfolios closing market value by one-quarter of the annual fee
as agreed upon with the client.

Fees are calculated on a graduated basis. To illustrate, an account with $3,000,000 under management
will incur fees of 0.75% on the first $1,000,000 and 0.50% on the next $2,000,000.

For the purpose of billing, a single “account” is defined as the assets under our management that
is controlled or directed by one person or entity, even though the assets are managed through two
or more separate accounts.

Management fees are payable quarterly in advance. The management fee is calculated based on a
percentage of assets under management. Assets under management are determined by computing

the market value of each account as of the close of trading on the last business day of the previous
quarter. For billing purposes, quarters close in March, June, September, and December. The
management fee is calculated by multiplying the closing account balance, including cash and cash
equivalents, on the last business day of each quarter end by ¼ of the annual fee listed on the Basic
Fee Schedule above. New clients’ fees are based on the account balance at inception and are
prorated for the period from inception to the end of the applicable quarter.
Clients have the option to elect to be billed directly for fees or to authorize Ward & Associates to
directly debit fees from their respective accounts.

Within five (5) business days after the date of execution of the investment advisory agreement,
clients have a right to terminate the agreement.

Both parties to the advisory agreement may terminate such at any time by written notice. In the
event of termination of the investment management service prior to the close of a quarter, we will
refund clients the unearned portion of the quarterly management fee on a pro rata basis. The refund
will be calculated from the effective date of termination, pursuant to the terms of the advisory
agreement.

Hourly and Fixed Fees

As previously discussed under Item 4 above, as part of our investment management and investment
supervisory services, we may also render advice on related areas including, but not limited to,
retirement planning, estate planning, real estate, insurance, trusts, and alternative investments.
Depending on the time, expertise, and level of involvement required in the provision of these
services, we may consider the rendering of such advice as either part of our overall investment
management service and as such, may not bill an additional fee from the Basic Fee Schedule.
Alternatively, such services may be provided as a separate service and if so, are billable on either
an hourly or fixed fee basis.

Hourly fees are billed during the first week of the month following the month in which the fees
were earned. Hourly fees vary based upon the nature of the work to be performed and are agreed
upon prior to the commencement of the work. As a general matter, hourly fees are not negotiable
and typically range from $200 to $400 per hour.

Fixed fees are quoted based on the nature and duration of the work to be performed. Fees may be
billed either while the project is in progress or at the completion of the project, as agreed upon prior
to the commencement of the project. Fees that are billed while the project is in process reflect the
time spent on the project up to the date of the bill. Clients may elect to terminate the work on any
project at any time. Upon termination, clients will be billed only for any work performed prior to
termination.

Hourly fees and fixed fees are not refundable.

Other Fees

Fees charged in accordance with the Basic Fee Schedule, as well as the hourly and fixed fees
described above, are separate from, and are exclusive of certain charges imposed by unaffiliated
third parties for which you are solely responsible. Such charges may include, but are not limited
to, custodial fees, brokerage commissions, fees charged by mutual funds or private money
managers and other fees and taxes on brokerage accounts and securities transactions.
Ward & Associates may also receive Trustee fees for certain, but not all, Trust clients for whom
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Item 7 – Types of Clients

Our firm generally provides wealth management and investment advisory services to individuals
and families and their related business entities, trusts, estates, charitable foundations and pension
and profit sharing plans.

We require accounts to be opened with a minimum asset value of $1,000,000. We may waive the
minimum, at our sole discretion.