Beese Fulmer Investment Management Inc

Item 5 – Fees and Compensation

Description
Beese Fulmer Investment Management, Inc. bases its fees on a percentage of assets under management,
hourly charges, and fixed fees (not including subscription fees). Hourly charges and fixed fees are rare and
for unique projects, the fee will be agreed upon prior to the start of any project outside the scope of normal
billing.

Fees are negotiable.

For certain accounts designated by BFIM as Alternative Accounts, BFIM will charge a separate annual flat
fee of 1.00%. This fee is separate from and in addition to the asset-based fees described above. The
Alternative Account fee is not included in the standard AUM fee schedule and is not offset against those
fees unless otherwise agreed in writing. The specific application of this fee will be set forth in the client’s
advisory agreement or other account documentation.

Fee Billing
Investment management fees are billed early in the quarter to which the fee applies, based on the valuation at the
beginning of the quarter. Fees will be calculated as a percentage of the aggregate market value of all your accounts
and prorated to each. Payment in full is expected upon invoice presentation. Fees can be deducted from the account
or we can bill you directly. Clients who consent in advance to direct debiting of their account will receive a fee
calculation statement detailing the fee amount and how it was calculated. New accounts are charged on a prorated
basis to the end of the current quarter.

The separate 1.00% fee for Alternative Accounts will be billed separately from BFIM’s standard asset-
based advisory fee. For billing purposes, clients will generally see two separate fees: one for the standard
advisory fee and one for the Alternative Account fee. Unless otherwise agreed, the Alternative Account fee
will be billed on the same quarterly schedule as other advisory fees and will be based on the value of the
Alternative Account at the beginning of the quarter, prorated as appropriate.

The annual fee schedule for discretionary accounts is as follows:

                       Assets Under Management                             Annual Fee Percentage

                       $0 - $500,000                                       1.50% per annum

                       $500,001 - $2,000,000                               1.00% per annum

                       $2,000,001 - $3,000,000                             0.80% per annum

                       $3,000,001 - $4,000,000                             0.60% per annum

                       $4,000,001 and above                                0.50% per annum

The minimum annual fee is $5,000.

A typical client may have two or more accounts which we designate related accounts. The fees for related
accounts are based upon the aggregate value of the combined accounts. Clients who are closely related
either by workplace or family relationships but make their decisions independently to use our services, we
designate these as associated accounts. Associated accounts may be offered a small discount from our fee
schedule to recognize their association with our existing clients.

BFIM, at its sole discretion, may waive its minimum fee and/or charge a lesser investment advisory fee
based upon certain criteria including, but not limited to, historical relationship, anticipated future earning
capacity, and anticipated future additional assets.

Other Fees
Custodians may charge transaction fees on purchases or sales of certain mutual funds and exchange-traded
funds. These transaction charges are usually small and incidental to the purchase or sale of a security. The
selection of the security is more important than the nominal fee that the custodian charges to buy or sell the
security.

Clients are advised that when their account holds investments in mutual funds that they are paying two layers
of management fees. We fee the client on the total value of the account which includes the value of the

mutual funds. The client is also paying an indirect fee through the management fees assessed on the mutual
funds. We do not receive any portion of these indirect fees that are assessed by the mutual fund.

Past Due Accounts and Termination of Agreement
Our investment management services may be terminated at any time, without penalty, upon written notice
from either party. Any fees you paid in advance will be prorated to the date of termination and any unearned
fees will be returned to you as soon as practical.

Item 7 – Types of Clients

Description
Beese, Fulmer Investment Management, Inc. generally provides investment advice to individuals, high net
worth individuals, pension and profit sharing plans, trusts, estates, charitable organizations, and corporations.

Client relationships vary in scope and length of service.

Account Minimums
The minimum account size is typically $500,000 with a minimum fee of $5,000. If an account’s value
falls below $500,000, the annual fee would be $5,000. As discussed in Item 5 (Fees and Compensation)
fees are negotiable and BFIM may waive these minimums.