Webb Advisors Incorporated

Fees and Compensation
                                   Investment Advisory Services

Investment Advisory Service fees are based on a percentage of the market value of the assets under
management, in accordance with the fee schedule outlined in the Investment Advisory Agreement.
Fees will be charged to and collected directly from your investment account. In the limited event
that we bill the client directly, payment is due upon receipt of the invoice. The annual investment
advisory fee shall be prorated and paid quarterly, in advance, based upon the market value of the
assets on the last business day of the previous quarter.

Clients are provided with an account statement from their custodian reflecting the deduction of the
advisory fee. If the account does not contain sufficient funds to pay advisory fees, WFG has limited
authority to sell or redeem securities in sufficient amounts to pay advisory fees. Clients may
reimburse the account for advisory fees paid to WFG, except for ERISA and IRA accounts.

Fees are negotiable, typically ranging from 1.4% to .5% annually, based on the size of an advisory
relationship. WFG reserves the right to waive advisory fees on any account at the sole discretion of
the Investment Advisor Representative and to charge a minimum advisory fee or retainer for
accounts where WFG has waived the account size requirement.

In addition to the advisory fees, clients may incur costs for custodial services, account
maintenance fees, transaction fees, and other fees associated with maintaining the account. Also,
depending on a particular security, trading costs could be incurred. WFG strives to minimize
trading costs.

Clients may terminate investment advisory services, without penalty, upon written notice within
five (5) business days after entering into the I            tA          Agreement with WFG. Clients
will be responsible for any fees and charges incurred from third parties as a result of maintaining
the account such as transaction fees for any securities transactions executed and account
maintenance or custodial fees.

Thereafter, a client may terminate investment advisory services with 30-day’s notice in either
written or electronic format which is acknowledged by the Investment Advisory Representative.
Should a client terminate investment advisory services during a quarter, they would be charged a
pro-rata portion of the advisory fee for the quarter up to the date of termination. Any unearned
fees would be refunded to the client.

                                         Financial Planning

WFG offers financial planning services on an open retainer fee, hourly fee, and Assets Under
Management basis. Fees are negotiable and may be a combination of these different fee types
based upon the complexity of the requested services and the personnel involved and are charged
in accordance with the fee schedule below :

•   Open Retainer Fee (range from $1,500 to $25,000 annually): Payable quarterly beginning at
    the execution of the advisory agreement with WFG and the balance due at the time of
    presentation of the plan, unless otherwise negotiated with the client. Clients may terminate
    the agreement with WFG and receive a full refund of any pre-paid advisory fees for planning
    services at any time up to presentation of the financial plan to client.

•   Hourly Fee ($150 to $500/hr): Payable as invoiced by WFG for time spent monthly. Clients
    may terminate hourly advisory services within five (5) business days after entering into the
    advisory agreement without penalty. After five (5) business days of entering into the advisory
    agreement, the client may terminate upon WFG’s receipt of client’s written notice to terminate.
    Clients will be responsible for any time spent by the Investment Advisor Representative in
    providing advisory services or analyzing the client’s situation.

•   Assets Under Management Fee (1.4% to .5% annually) The annual investment advisory fee
    shall be prorated and paid quarterly, in advance, based upon the market value of the assets on
    the last business day of the previous quarter.

Financial Planning only clients will enter into a Financial Planning and Consulting Agreement that
fully outlines the terms and fees. Clients are advised that fees for financial planning are strictly for
financial planning services. Therefore, clients may pay fees and/or commissions for additional
services and/or products obtained to execute their financial plan. A portion of fees paid for
financial planning may be recompensed through advisory fees if the financial planning client
becomes an investment advisory client at the investment advisor representatives discretion.

Performance-Based Fees and Side-By-Side Management
WFG does not charge any performance-based fees (fees based on a share of capital gains or on
capital appreciation of the assets of a client) believing they may create an unintentional conflict of
interest. Additionally, we do not charge side-by-side management fees.

Types of Clients
WFG provides services to individuals and families, trusts, estates, entrepreneurs, small business
owners, and corporate executives. We generally require an aggregate account minimum of
$250,000 for investment advisory services.

Methods of Analysis, Investment Strategies and Risk of Loss
Clients, with the assistance of their Investment Advisor Representative, will complete an initial
Investor Questionnaire. Upon receipt and analysis of a client’s information, the Investment
Advisor Representative and client will review and determine an appropriate asset allocation
strategy. A client’s portfolio may be invested similar to, or different from, other clients with the
same or similar objectives. Exceptions are made for considerations such as tax sensitivity,
concentrated stock positions, outside holdings and ethical or religious preferences. Allocations
may be adjusted depending on market conditions and/or unique client concerns. Specific portfolio
holdings may be increased, decreased, eliminated or added based on WFG’s ongoing due diligence
process.

Differing returns among the various asset classes could result in the asset classes becoming over
or under represented relative to the allocation strategy over time. Rebalancing is the process of
adjusting any over or under represented funds within the asset classes back to the target alloca-
tion percentages. Rebalancing may consist of buying or selling portfolio holdings and/or utilizing
additional deposits to maintain the target allocation. Market conditions, unique client circum-
stances, income taxes and trading costs will also be taken into consideration, and portfolios will be
rebalanced as appropriate.

Investing in securities involves risk of loss that clients should be prepared to bear. WFG does not
represent, warrantee or imply that the services or methods of analysis used by WFG can or will
predict future results, successfully identify market tops or bottoms, or insulate clients from losses
due to major market corrections or crashes.
All investments present the risk of loss of principal – which means the investments may be worth
less when sold than the price paid for the securities. There is also the risk of losing purchasing
power - which means the rate of appreciation of the investment is less than the rate of inflation.

Each type of investment has unique risk characteristics which must be considered before invest-
ing. These risks could include loss of value, loss of purchasing power and the ability to convert the
investment quickly to cash. More information about the risks of any specific investment should be
discussed with a WFG Investment Advisor Representative before investing.

Clients are advised that performance may be affected more on smaller accounts due to difficulties
with diversifying smaller accounts and due to risk controls potentially being compromised. Perfor-
mance of smaller accounts may vary from the performance of accounts with more dollars invested
due to fluctuations in the market that may affect smaller accounts more. The effects of compound-
ing may be greater in larger accounts versus smaller accounts.