William Madison Advisors Inc

FEES AND COMPENSATION

Investment management fees are payable quarterly and in advance of services at a rate
equal to one-fourth of the agreed annual percentage rate multiplied by the “billable balance”
on the last day of the preceding calendar quarter. For this purpose, “billable balance” is the
value of the Client’s portfolio as of the last market day of the applicable quarter, adjusted to
prorate additions and withdrawals during the previous quarter.

William Madison Advisors                                                      Form ADV Part 2A

The standard fee charged for investment management services is 0.95% annually of the value
of the portfolio managed by the Adviser. Investment management fees may be modified
from the foregoing based upon individual circumstances, aggregation of accounts, the
complexity of services, the portfolio allocation, additional resources required, or at the
discretion of the Adviser. Investment management fees are determined upon the initiation
of the engagement and are outlined and agreed upon in writing by the Adviser and the
Client in the Advisory Services Agreement. Advisory fees are not collected for services to be
performed more than six months in advance.

William Madison Advisors does not charge setup fees to new clients, nor does the Firm
charge an established minimum annual fee. Payment of investment management fees is
made through a debit directly to the Client’s investment account, as specifically authorized
by the client in the initial account application with the brokerage firm, or via an alternative
method that is agreed upon by the Adviser and Client.

The aforementioned advisory fees represent fees for advisory and management services only.
Clients may pay transaction fees to broker/dealers, custodians, and to other third-party
service providers who may be engaged by Clients (such as trust companies, etc.). All fees
paid to the Adviser for investment advisory services are separate from the fees and expenses
charged to shareholders of mutual fund shares. A complete explanation of the expenses
charged by the mutual funds is contained in each fund’s prospectus. Clients are encouraged
to read each fund prospectus.

Presently, client accounts managed by William Madison Advisors are primarily held at
Charles Schwab Advisor Services, a subsidiary of Charles Schwab & Co., Inc., (“Schwab”).
Accordingly, Schwab maintains custody of all client accounts due to the economies and
efficiencies achieved. From time to time, William Madison Advisors may coordinate with
other brokerage firms for the purchase of certain securities not available from Schwab, but
such transactions will ultimately transact with the Client’s account at Schwab. Traditionally,
this has been limited to fixed-income investments (e.g. corporate and municipal bonds).

As a fee-only Investment Adviser, the Firm does not charge or participate in any form of wrap
fees, which include a management fee and commission expenses wrapped into a single
charge. Additionally, William Madison Advisors does not charge performance-based fees, as
defined by the SEC’s Investment Adviser’s Act of 1940, as amended.

If Clients require additional services outside the scope of Investment Management Services,
as detailed above, such as consultation or research services, the Firm’s hourly rate will apply.
The hourly rate will vary depending upon the particular circumstances, complexity or nature
of desired services, and at the discretion of the Adviser. The hourly rate will be agreed upon
prior to the initiation of services.

For more time-intensive projects, the Adviser may request a retainer equal to an amount up
to one-half of the total estimated fee, with the balance due upon delivery of services.
Otherwise, payments for Consultation Service are due upon the delivery of the agreed upon
services.

Personal Financial Planning services are offered at the Firm’s current hourly rate, based, in
part, upon the complexity of services and out-of-pocket expenses incurred by the Firm. The
approximate total cost will be determined and agreed upon at the time of engagement. If
Client circumstances or objectives change such that a new investment plan is required, it is
understandable that there may be additional fees. The Client would be notified prior to the

William Madison Advisors                                                      Form ADV Part 2A

initiation of any additional efforts. Financial Planning fees are generally due and payable
upon delivery of the plan. However, for more time-intensive projects, the Adviser may request
a retainer at the time of engagement and will invoice the Client for the balance upon the
delivery of services.

We offer Estate Planning services to assist with general information as it applies to reviews of
existing plans, gathering information needed by outside firms in the creation of documents,
and updating existing plans for clients. Depending upon the needs of the client and desires
for estate planning document review, preparation, or updates, we may engage EncorEstate
Plans or EstateGuru, which are third-party scrivener services, or provide a referral to an estate
planning attorney. If a referral is made to an estate planning attorney, the Client will pay
those service providers directly. Generally, if EncorEstate Plans or EstateGuru is utilized,
William Madison Advisors will charge an agreed upon fee, which will be billed to the Client in
accordance with the fee for Personal Financial Planning services as described in the Advisory
Services Agreement. Clients are not required to utilize any third-party products or services
that we may recommend, and they may be able to receive similar services from other
professionals at a similar or lower cost.

PERFORMANCE-BASED FEES AND SIDE-BY-SIDE MANAGEMENT

William Madison Advisors does not charge performance-based fees (i.e. fees based on a share
of capital gains on or capital appreciation of the assets of a client).

TYPES OF CLIENTS

William Madison Advisors provides Investment Supervisory and Management Services to
individuals, high net worth individuals, pension and profit-sharing plans, trusts, estates,
charitable organizations, foundations, family limited partnerships, corporations, and other
business entities.

William Madison Advisors does not state publicly the minimum dollar amount required for a
client to initiate an investment advisory relationship. The Firm may, in its own judgment,
determine to accept a portfolio upon the commencement of the investment advisory
relationship, based upon certain factors including, but not limited to, family relationships,
intention of the new client to bring additional assets, or clients who demonstrate a particular
accumulation mindset.

The Firm’s Consultation and Financial Planning Services, which are billed at hourly rates, do
not require a minimum relationship size. The goal of the Firm is to work with Clients of all
ages and sizes with the appropriate attitude that will enable the Firm to assist them with the
stewardship of their wealth.

William Madison Advisors consults with certain non-profit organizations to assist with
financial matters relating to foundations, charitable trusts, endowments, and charitable gift
annuities, among other items. In certain situations, WMA is engaged by the Board of
Directors or Executive Director of the non-profit organization, President of a foundation, or
the Trustee of certain charitable trusts to manage the assets of the organization or trust.
Neither William Madison Advisors nor any of the Firm’s Registered Investment Adviser
Representatives acts as custodian of any account or trustee for any charitable trust.

William Madison Advisors                                                      Form ADV Part 2A

METHODS OF ANALYSIS, INVESTMENT STRATEGIES, AND RISK OF LOSS

William Madison Advisors seeks to match investment management services to personal
financial planning objectives and considers the success of an investment management
program to be dependent upon a clear financial plan. Personal financial planning services
are an integral part of services offered by the firm. Once personal financial goals are
quantified, the investor’s risk tolerance, investment time horizon, net worth, tax situation, and
stage in life are defined for preparation of an initial, formal, written Investment Policy
Statement, which is to provide guidance to the Adviser in the management of funds.

Investment strategies include a focus on long-term portfolio construction. Investing in
securities involves risk of loss that clients should be prepared to bear. Historically and
statistically, risks of loss are greatly reduced when investors utilize a minimum of a five-to-
seven year time horizon as their investment timeline. Meeting individual risk tolerances and
investment time horizons contribute to portfolio allocation between fixed-income and equity
securities.

Asset allocation, which seeks to achieve the most efficient diversification of assets for the
accomplishment of specific goals, is customized for each client. The Investment Policy
Statement, which provides guidance for the investment effort, is reviewed periodically with
the client for revision to meet changing needs over time. When revisions are determined
appropriate, a written modification memorandum to the Investment Policy Statement is
made and acknowledged by the client.

The Firm’s premise for Personal Financial Planning is that this effort is a comprehensive,
iterative, and ongoing process that seeks to maximize the utilization of a client’s financial
resources, while taking into consideration the client’s individual uniquenesses and stage in
life. The Personal Financial Planning process is a learned and professional discipline for
which the firm has considerable training, credentials, and experience. Personal Financial
Planning is comprehensive in that it encompasses cash/debt management, risk
management (insurance), investments, taxes, retirement preparation planning, and estate
planning.

The Personal Financial Planning process (1) assesses and summarizes the current financial
condition of the client, (2) identifies and quantifies the financial goals desired for
achievement, (3) makes recommendations and implements certain actions to accomplish
the identified goals, and (4) sets in place an approach for reviewing and monitoring the
progress of achieving the stated goals.

Retirement preparation planning is one of the most significant areas of financial planning
that requires investment advisory services. William Madison Advisors takes a well-developed
and unique approach to this area of financial planning, including (1) defining and quantifying
how much will need to be accumulated for retirement, (2) identifying the amount that will
need to be placed regularly into a defined accumulation program to meet that goal and
where those funds need to be invested, and (3) providing a measurement tool for monitoring
the progress of the accumulation effort on an ongoing basis.

The concept of allocating assets in an investment portfolio between equity investments,
fixed-income investments, and cash, is generally at the forefront of the Firm’s strategies.
Upon determining the proper allocation of these broad asset classes, a Client’s investment
portfolio is allocated further among a number of sub-asset classes (e.g. domestic equities,
foreign equities, large, mid, and small cap equities, corporate bonds, and government

William Madison Advisors                                                         Form ADV Part 2A

securities). At its core, asset allocation seeks to achieve the most efficient diversification of
assets, so as to help lessen risk over time while not sacrificing the effectiveness of the
portfolio in an effort to achieve the Client’s objectives.

Most client instructions, as documented within the Investment Policy Statement, state that
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