Berkeley Inc

Item 5 - Fees and Compensation

 Description:
 Berkeley, Inc. bases its fees on a percentage of assets under management, hourly charges, and fixed
 fees.

 Some Retainer Agreements may be priced based on the complexity of work, especially when asset
 management is not the most significant part of the relationship.

 Financial plans are priced according to the degree of complexity associated with the client’s situation.

 Fee Billing:
 Investment management fees are billed quarterly, in advance, or arrears meaning that Berkeley, Inc.
 invoices the Client after the three-month billing period has begun or has been completed. Payment in
 full is expected upon invoice presentation. Fees are usually deducted from a designated client account
 to facilitate billing. The client must consent in advance to direct debiting of their investment account.

 Clients are billed for financial planning upon the presentation of the completed Plan.

 Other Fees:
 Custodians may charge transaction fees on purchases or sales of certain stocks, 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.

 Berkeley, Inc., in its sole discretion, may charge a lesser investment advisory fee based upon certain
 criteria (e.g., historical relationship, type of assets, anticipated future earning capacity, anticipated
 future additional assets, dollar amounts of assets to be managed, related accounts, account
 composition, negotiations with clients, etc.).

 New Investment Advisory Agreement fees are calculated on a formula basis and adjusted for complexity
 of individual situations. The formula is based on gross income, gross assets, and other financial
 considerations.

 Expense Ratios:
 Mutual funds generally charge a management fee for their services as investment managers. The
 management fee is called an expense ratio. For example, an expense ratio of 0.25 means that the

Berkeley, Inc.
Form ADV Part 2A

 mutual fund company charges 0.25% annually for their services. These fees are in addition to the fees
 paid by you to Berkeley, Inc.

 Performance figures quoted by mutual fund companies in various publications are after their fees
 (whenever possible) have been deducted.

 Past-Due Accounts and Termination of Agreement:
 Berkeley, Inc. reserves the right to stop work on any account that is more than 60 days overdue. In
 addition, Berkeley, Inc. reserves the right to terminate any financial planning engagement where a
 client has willfully concealed or has refused to provide pertinent information about financial situations
 when necessary and appropriate, in Berkeley, Inc.’s judgment, to providing proper financial advice. Any
 unused portion of fees collected in advance will be refunded within 30 days.

Item 7 - Types of Clients

 Description:
 Berkeley, Inc. generally provides investment advice to individuals, banks or thrift institutions,
 investment companies, pension and profit-sharing plans, trusts, estates, or charitable organizations,
 corporations or business entities.

 Account Minimums:
 Clients receiving ongoing asset management services will be assessed a $2,500 minimum annual fee
 unless other arrangements are agreed upon. Clients with assets below the minimum account size may
 pay a higher percentage rate on their annual fees than the fees paid by clients with greater assets under
 management.