Beacon Investment Advisory Services Inc

Item 5. Fees and Compensation

    Beacon Trust offers its services on a fee basis, which may include fixed fees, or fees
    based upon assets under management, depending upon the nature of the investment
    advisory service being provided by the firm.
    Financial Planning Fees
    Beacon Trust may charge a fixed fee for financial planning. These fees are negotiable
    but generally range from $5,000 to $15,000 on a fixed fee basis, depending upon the
    level and scope of the services and the professional rendering the financial planning
    and/or the consulting services. For Clients with less than $1,000,000 of AUM, the
    financial planning fee component will be equal to the difference between the AUM
    Fee and $5,000. The financial planning fee component will be waived for Clients
    whose AUM is in excess of $1,000,000 Beacon may at its discretion provide
    discounted rates on these fees for existing clients.

    Investment Management Fees

    Beacon Trust provides investment management services for an annual fee based upon
    a percentage of the market value of the assets being managed by Beacon Trust. Beacon
    Trust’s annual fee does not cover certain fees and costs imposed by the custodian
    which apply to the account. These additional costs could include among other things:
    other broker-dealer fees, mutual fund fees, markup & markdown, bid- ask spreads etc.,
    margin interest, account activity fees and miscellaneous fees & costs, if applicable.
    Beacon Trust does not receive any portion of these commissions, fees, and costs, if
    applied; they are paid directly to the custodian.

Form ADV 2A                              Beacon Investment Advisory Services, Inc.

    Beacon Trust’s fee is charged monthly, in arrears, based upon the average daily
    market value of the assets being managed by Beacon Trust during the previous month.
    The annual fee varies up to 1.25%, (less for accounts originated through Tirschwell,
    Loewy & Friedner Investments (TLFI), yet charged in advance, and 1.50% for Special
    Needs Trusts) depending upon the market value of the assets under management and
    the type of investment management services to be rendered. (This annual fee could be a
    higher percentage for accounts below the stated account minimum.) In addition, trusts
    in the state of New Jersey require additional fees to be paid by the trust, based on the
    trust itself. Beacon Trust’s service may be terminated by either party upon written
    notification in accordance with the applicable contractual notice of termination. Upon
    termination, the fees charged for advisory services will be pro-rated and a refund for
    any unearned fees will be issued.

    Certain supervised persons of Beacon Trust accept compensation for the referral of a
    new client or account, and/or the sale of investment products including a mutual fund
    sponsored by Beacon Trust. Such compensation includes expenses of the proprietary
    mutual fund that is sponsored by Beacon. This practice presents a conflict of interest
    as Beacon Trust personnel may be incentivized to recommend investment products
    based on the expenses associated to the fund, rather than on a client’s needs. Beacon
    Trust mitigates such conflicts through disclosure of this arrangement in this brochure
    and in other disclosure documents provided at the onset of our relationship with
    prospective clients as well as exclusion of fund asset values from advisory fees.
    Clients have the option to purchase certain investment products that Beacon Trust
    recommends through other brokers or agents that are not affiliated with Beacon Trust.

    Fee Discretion

    Beacon Trust may, in its sole discretion, negotiate to charge a lesser fee with clients
    based upon certain criteria, such as anticipated future earning capacity, anticipated
    future additional assets, dollar amount of assets to be managed, related accounts
    (households), account composition, pre-existing/legacy client relationship, account
    retention, vendor or business relationships and pro bono activities.

    Wrap Program Fees

    The fee schedule for the Wrap Program is set forth below, however each month fees
    are payable by the client in the middle of each month. The wrap fee is computed on
    the last day of the month, based on the average daily market value of each of the
    securities in the account during the prior month, and as follows.

          A) For Beacon Trust Wrap Fee Program clients, the following fee schedule applies:

Form ADV 2A                           Beacon Investment Advisory Services, Inc.

               Equity Strategies
                 1.25%               for the first     $2,000,000
                 1.00%       for    $2,000,001     to  $5,000,000
                 0.90%       for    $5,000,001     to  $10,000,000
                 0.75%       for   $10,000,001     to  $15,000,000
                 0.50%       for   $15,000,001 and above

               Fixed Income
                 0.65%              for the first     $3,000,000
                 0.55%      for    $3,000,001 and above

               Special Needs Trusts
                 1.50%              for the first    $3,000,000
                 1.00%      for $3,000,001        to $5,000,000
                 0.50%      for $5,000,001 and above

       B) The total amount paid using this schedule may be more or less than the
            amount charged by Beacon Trust if implemented differently.

       C) Fees are subject to negotiation in certain cases and may be discounted at Beacon Trust’s
            discretion.

       D) 100% of the wrap fee is paid to Beacon Trust, which then pays any
            brokerage charges incurred by the client. Brokerage charges can vary widely
            from period to period and client to client based on market events,
            contributions and withdrawals by a client.
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Item 7. Types of Clients

    Beacon Trust generally provides its services to individuals. However, Beacon Trust may
    also provide advice to pension and profit-sharing plans, trusts, estates, charitable
    organizations, corporations and business entities.

    Minimum Account Size

    As a condition for starting and maintaining a relationship, Beacon Trust generally
    imposes a minimum portfolio size of $500,000. Beacon Trust, in its sole discretion,
    may accept clients with smaller portfolios based upon certain criteria including
    anticipated future earning capacity, anticipated future additional assets, dollar amount
    of assets to be managed, related accounts, account composition, pre-existence of a
    relationship, account retention, and pro bono activities. Beacon Trust only accepts
    clients with less than the minimum portfolio size if, in the sole opinion of Beacon

Form ADV 2A                               Beacon Investment Advisory Services, Inc.

    Trust, the smaller portfolio size will not cause a substantial increase of investment risk
    beyond the client’s identified risk tolerance.

    Minimum Annual Fee

    When Beacon Trust does waive its minimum portfolio size, the firm generally imposes
    a minimum annual fee of $5,000. This minimum fee may have the effect of making
    Beacon Trust’s service impractical for clients with smaller investment portfolios.
    Beacon Trust, in its sole discretion, may waive its minimum annual fee based upon
    certain criteria including anticipated future earning capacity, anticipated future
    additional assets, account composition, related accounts, and pre-existing client
    relationships.

    Additionally, certain Independent Managers may impose more restrictive account
    requirements and varying billing practices than Beacon Trust.