Bernard & Johnson LLC

Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client shall sign one or more agreements that detail the responsibilities of Bernard & Johnson and
the Client.

A. Fees for Advisory Services
Financial Planning Services
Bernard & Johnson offers financial planning services at an hourly rate of up to $600 or on a fixed engagement fee.
Fixed engagement fees will be based upon the expected hours to complete the engagement at the hourly rate.
Fees may be negotiable depending on the nature and complexity of each Client’s circumstances. An estimate for
total hours and/or costs will be determined prior to engaging for these services.

Investment Management Services
Investment advisory fees are paid quarterly, in advance of each calendar quarter, pursuant to the terms of the
investment advisory agreement. Investment advisory fees are based on the market value of assets under
management at the end the prior quarter. Investment advisory fees are charged at an annual rate of up to 1.00%
of assets under management. Fees may be negotiable at the sole discretion of the Advisor and will be based on
several factors including the size and complexity of the Client relationship, future asset levels and the overall
scope of services. Relationships with multiple objectives, specific reporting requirements, portfolio restrictions
and other complexities may be charged a higher fee.

The investment advisory fee in the first quarter of service is prorated from the inception date of the account[s] to the
end of the first quarter. The Client’s fees will take into consideration the aggregate assets under management with
the Advisor. All securities held in accounts managed by Bernard & Johnson will be independently valued by the
Custodian. Bernard & Johnson will conduct periodic reviews of the Custodian’s valuations.

Use of Independent Managers
As noted in Item 4, the Advisor will implement all or a portion of a Client’s investment portfolio utilizing one or more
Independent Manager[s]. To eliminate any conflict of interest, the Advisor does not earn any compensation from an
Independent Manager. The Advisor will only earn its investment advisory fee as described above. Independent
Manager[s] typically do not offer any fee discounts but may have a breakpoint schedule which will reduce the fee
with an increased level of assets placed under management with an Independent Manager. The terms of such fee
arrangements are included in the Independent Manager’s disclosure brochure and applicable contract[s] with the
Independent Manager. The total blended fee, including the Advisor’s fee and the Independent Manager’s fee, will
not exceed 2.00% annually.

Retirement Plan Advisory Services
Fees for retirement plan advisory services are charged an annual asset-based fee of up to 0.50%. Fees may be
negotiable depending on the size and complexity of the Plan. Fees may be billed quarterly in advance or arrears,
depending on the Plan. Fees in the first quarter of the engagement are pro-rated from the effective date of the
agreement to the end of the quarter.

                                      Bernard & Johnson Family Wealth Management
                                     201 S. Lake Avenue, Suite 502, Pasadena, CA 91101
                                         Phone: (626) 405-2920 * Fax: (626) 405-2997
                                                http://bernardandjohnson.com

B. Fee Billing
Financial Planning Services
Financial planning fees are invoiced up to fifty percent (50%) upon execution of the financial planning agreement,
with the balance due upon completion of the agreed upon deliverable[s].

Investment Management Services
Investment advisory fees will be calculated by the Advisor or its delegate and deducted from the Client’s account[s]
at the Custodian. The Advisor or its delegate shall send an invoice to the Custodian indicating the amount of the
fees to be deducted from the Client’s account[s] at the respective quarter-end date. The amount due is calculated
by applying the quarterly rate (annual rate divided by 4) to the total assets under management with Bernard &
Johnson at the end of the previous quarter. Clients will be provided with a statement, at least quarterly, from the
Custodian reflecting deduction of the investment advisory fee. When the Advisor deducts its fee, the Advisor will
provide the Client a report itemizing the fee, including the calculation period covered by the fee, the account value
and the methodology used to calculate the fee. It is the responsibility of the Client to verify the accuracy of these
fees as listed on the Custodian’s brokerage statement as the Custodian does not assume this responsibility. Clients
provide written authorization permitting advisory fees to be deducted by Bernard & Johnson to be paid directly from
their accounts held by the Custodian as part of the investment advisory agreement and separate account forms
provided by the Custodian.

Use of Independent Managers
For Client accounts implemented through an Independent Manager, the Client’s overall fees may include Bernard &
Johnson’s investment advisory fee (as noted above) plus investment management fees and/or platform fees
charged by the Independent Manager[s], as applicable. In certain instances, the Independent Manager or the
Advisor may assume responsibility for calculating the Client’s fees and deduct all fees from the Client’s account[s].

Retirement Plan Advisory Services
Retirement plan advisory fees may be directly invoiced to the Plan Sponsor or deducted from the assets of the
Plan, depending on the terms of the retirement plan advisory agreement.

C. Other Fees and Expenses
Clients may incur certain fees or charges imposed by third parties, other than Bernard & Johnson, in connection
with investments made on behalf of the Client’s account[s]. The Client is responsible for all securities execution
...

Item 7 – Types of Clients

Bernard & Johnson offers investment advisory services to individuals, families, trusts, small businesses and
retirement plans. The amount of each type of Client is available on Bernard & Johnson’s Form ADV Part 1A.
These amounts may change over time and are updated at least annually by the Advisor, Bernard & Johnson
generally does not impose a minimum size for establishing a relationship, but certain investments and
Independent Managers may have minimums.