Woodward Diversified Capital LLC

Item 5 – Fees and Compensation

How We Are Compensated for Our Advisory Services

Woodward Diversified Capital offers our advisory services on a fee-only basis. Our fees vary among
the different types of advisory services we offer and may be negotiated at our sole discretion. The
specific fees and manner in which fees are charged and calculated are described in your investment
advisory agreement. You should carefully review the investment advisory agreement prior to signing
it.

Fees for our advisory services may be higher than fees charged by other advisers who offer similar
services. You may be charged different fees than similarly situated clients for the same services. You
should carefully review this brochure to understand the fees and other sources of compensation that
exist among our services prior to entering into an investment advisory contract with our firm.

Investment and Wealth Management Services

Woodward Diversified Capital offers investment and wealth management services for an annual fee
based on the amount of assets under the firm’s management. Fees are generally billed in advance
each calendar quarter based on the market value of the assets under management/advisement on the
last day of the previous calendar quarter. Woodward Diversified Capital, in our sole discretion, may
waive the minimum annual fee based upon certain criteria, including, but not limited to, anticipated
future earning capacity and/or additional assets, dollar amount of assets to be managed, related
accounts, account composition, pre-existing client relationships, account retention, and pro bono
activities. For investment and wealth management services Woodward Diversified Capital provides
to certain clients or for specific client holdings (e.g., held-away assets, 529 plans, etc.), we may
negotiate a fee rate that differs from our standard fee schedule.

The graduated fee schedule for our wrap fee program is as follows:

                     Assets Under Management           Annual Advisory Fee
                     $0 to $999,999                    1.25%
                     $1,000,000 to $6,999,999          1.00%
                     Above $7,000,000                  0.90%

This fee schedule may be based on cumulative household assets under management. However,
certain ERISA rules prevent householding corporate plans with personal assets for fee reductions.
You should refer to your advisory agreement for your specific fee rate(s).

Selection of Independent Managers

Fees for Independent Managers are set forth by the Independent Manager and may be included in or
in addition to Woodward Diversified Capital’s fees. You should refer to the Independent Manager’s
Form ADV Part 2A Brochure for information on their fees and compensation.

Program Offered Through Wells Fargo Advisors

Fees for the Private Advisory Network Program offered through Wells Fargo Advisors are inclusive
of Woodward Diversified Capital’s and Wells Fargo Advisors’ advisory fees and are as follows:

       Program                  Program Type                 Maximum Annual Advisory Fee
       Private Advisor          Separately Managed           2.05%
       Network                  Account

Advisory fees for the third-party manager utilized through the Private Advisor Network Program are
not included in the above program fee. You pay for the services of the third-party manager
separately. You should refer to your advisory agreement for your specific fee rate(s).

Wells Fargo Advisors will calculate and directly debit advisory fees from the clients’ accounts for
assets within their programs. The value of assets held in any Wells Fargo Advisors program is
excluded from the amount of total household assets used to determine Woodward Diversified
Capital’s advisory fees for other assets of a client that are managed by Woodward Diversified
Capital.

Program Offered Through Adhesion

Fees for the program available through Adhesion are inclusive of Woodward Diversified Capital’s
advisory fees, the third-party asset manager’s advisory fees and Adhesion’s overlay/platform fee and
are as follows:

                                  Maximum Annual Advisory Fee
                                           2.10%

You should refer to your investment management agreement for your specific fee rate(s).

Financial Planning and Consulting Services

Fees for financial planning and/or consulting services can be billed on an hourly rate, fixed rate, or
project basis in advance on a monthly or quarterly basis. There is no minimum fee required for
financial planning or consulting services; however financial planning and consulting fees shall
generally not exceed $20,000 annually. Fees are due and payable as incurred. Woodward Diversified
Capital may agree with clients to charge fixed fees for consulting services.

Factors we consider when determining our financial planning and consulting fees include, but are
not limited to:

   •   The amount of time we expect to spend completing the financial planning or consulting
       services and providing related advice;

    •   The complexity of your goals, issues and/or needs;

    •   The extensiveness and complexity of the data needed regarding your personal financial
        information;
    •   Your net worth or the value of your investment accounts and/or other assets that are the
        subject of the financial planning or consulting services; and/or

    •   Special circumstances related to life changes, marital status, health or special income needs,
        or growth or decline of a personal business.

Woodward Diversified Capital may request a retainer to initiate financial planning and consulting
services; however, we will not request the prepayment of fees more than $1,200 in advisory fees
more than six months in advance.

You may engage Woodward Diversified Capital for additional investment management services to
assist with implementing one or more financial planning recommendations. You will incur
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Item 7 – Types of Clients

Woodward Diversified Capital offers investment advisory services to a wide variety of clients,
including individuals, high net worth individuals and families, pension, profit-sharing and other
employer sponsored plans, trusts, estates, family entities, charitable institutions, foundations,
endowments, corporations, pooled investment vehicles and other business entities.

Woodward Diversified Capital generally does not require a minimum initial investment for
investment management services. The firm, in its sole discretion, may accept clients with smaller
portfolios based upon each client’s particular circumstances.

Certain Independent Managers may impose more restrictive account requirements and varying
billing practices than Woodward Diversified Capital. In such instances, Woodward Diversified
Capital may alter its corresponding account requirements and/or billing practices to accommodate
those of the Independent Managers.