William B Walkup & Associates Inc

Fees and Compensation
   Supervisory Fees for Individual Portfolios
   At the beginning of each annual period, a basic fee of 1.0% of the assets under management is
calculated for the upcoming year. Half of this fee is invoiced after approximately two weeks in order to
allow confirmation of the value of the assets with the broker. This half pays for the first six months of
service. The second half of the fee is invoiced in the seventh month. This half pays for the second six
months of service. The fee is negotiable. The client fees are paid by having the fees deducted from the
managed account. However, the client has the right to pay management fees with funds outside of the
managed account. The custodian will provide periodic account statements to the client. Such statements
will reflect all fee withdrawals by William B. Walkup & Associates, Inc. It is the client’s responsibility to
verify the accuracy of the fee calculation. The custodian will not determine whether the fee is properly
calculated.
   If the total basic fee for an annual period is less than $500.00, the entire fee will be invoiced and due in
the first month.
   The investment advisory agreement can be canceled. Any pre-payments will be refunded pro-rata., with
the exception of the fee for the first six months of service, which is non-refundable.

  Supervisory Fees for Stock Investment Partnerships
   At the beginning of each annual period, a basic fee of 0.9% of the assets under management is
calculated for the upcoming year. Half of this fee is invoiced after approximately two weeks in order to
allow confirmation of the value of the assets with the broker. This half pays for the first six months of
service. The second half of the fee is invoiced in the middle of the seventh month. This half pays for the
second six months of service. The fee is negotiable. The client fees are paid by having the fees deducted
from the managed account.
   A partnership may cancel the Investment Advisory Agreement. Any pre-payments will be refunded
pro-rata.

  These fees are for advisory services only and do not include any transaction fees or commissions,
which may be charged separately by the broker/dealer custodial firm. See the section heading Brokerage
Practices for more information.

   In addition to fees paid for advisory services with respect to clients' investments in mutual funds,
clients pay additional fees on the mutual fund investment because the mutual funds also pay advisory
and/or management fees to an investment advisor.

Performance-Based Fees and Side-By-Side Management
  William B. Walkup & Associates, Inc. does not charge performance-based fees (i.e. fees based on
capital gains in the client account).

Types of Clients and Account Minimums
     William B. Walkup & Associates, Inc. provides advisory services to individuals, trusts, estates,
business entities, and pooled investment vehicles.

  William B. Walkup & Associates, Inc. does not have any account minimum and there is no investment
required for general financial consultation. A requirement of all clients is that they be friends whom
William B. Walkup or Christopher J. Walkup or Richard B. Newsome know and trust and about whom
William B. Walkup or Christopher J. Walkup or Richard B. Newsome have obtained extensive
knowledge of their financial status, goals, and financial needs as well as their risk tolerance and the
appropriateness of asset allocations in their portfolio.

  Methods of Analysis, Investment Strategies, and Risk of Loss
  Analysis utilized includes fundamental and technical analysis. William B. Walkup & Associates, Inc.
uses asset allocation strategies for portfolio management.

   While there is risk in all investments, some carry a greater degree of risk or higher costs. There is no
guarantee that the investment strategy selected for the client will result in the client’s goals being met, nor
is there any guarantee of profit or protection from loss. For those investments sold by prospectus, clients
should read the prospectus in full.

  During initial consultation with a client, William B. Walkup & Associates, Inc. discloses the risks and
opportunities for our investment strategy or for particular types of securities used. For instance,
   • Debt securities are subject to interest rate risk.
   • Equity values are subject to market and economic conditions beyond the control of the advisor.
   • High yield securities are corporate debt securities rated below investment grade.
   • There are tax consequences for short-term trading wherein capital gains are taxed as ordinary
       income.
   • Our investment strategies at times include a non-diversified approach.
   • Margin transactions are subject to a wider price fluctuation than non-leveraged transactions.
   • William B. Walkup and Associates, Inc. offers advice to partnerships which invest in promissory notes
       and other partnerships. These carry certain risks due to illiquidity and default.

Statement of Risk

William B. Walkup and Associates, Inc. offers no guarantee of investment performance. Market
fluctuations, macroeconomic cycles, liquidity, default and company-specific events are but a few of the
risks inherent to Wm. B. Walkup & Associates, Inc. investments. Past performance does not guarantee
future results. Below is an overview of risks:

Common Stocks. Investments in common stocks, both directly and indirectly through investment in
shares of ETFs, may fluctuate in value in response to many factors, including, but not limited to, the

activities of the individual companies, general market and economic conditions, interest rates, and specific
industry changes. Such price fluctuations subject certain strategies to potential losses. During temporary
or extended bear markets, the value of common stocks will decline, which could also result in losses for
each strategy.

Portfolio Turnover Risk. High rates of portfolio turnover could lower performance of an investment
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