Burgess Investment Management and Research Inc

Item 5 - Fees and Compensation

Burgess Investment Management and Research Inc. charges each client a fee (the “management fee”)
monthly or quarterly and in arrears (after the service has been provided) based upon a percentage of the
market value of the assets in the client’s accounts (“management fee”). The Firm’s tiered fee structure
is shown in the table below.

                                     Annualized Management Fee
                                       Weighted Fee Schedule

                       Portion of Client’s Assets Between:            Annualized Fee

                            $0          Tier       $250,000                0.900%

                        $250,001                  $1,000,000               0.750%

                       $1,000,001                 $2,500,000               0.625%

                                 $2,500,000 and above                      0.500%

                                         •     Fees are negotiable.

The Firm will aggregate the market value of a client’s accounts (accounts of related individuals living in
the same household) at the end of each month or quarter depending on the agreement with the client
and calculate a “monthly or quarterly fee rate” to assess its management fee.

Example Fee Calculation

To better understand the Firm’s management fee, consider the following example of a husband, wife,
and aunt living in the same household. At the end of the month of April, the husband and wife each
had an account managed by the Firm with a market value of $1,250,000 and the aunt had an account
with a market value of $500,000. Thus, collectively, the client’s household has accounts with $3,000,000
under management at the end of the month. The clients agreed to paying their fees monthly and in
arrears. The fee rate applied to each account would be calculated as follows:

First: Calculate the Annualized Rate Utilizing the Tiered Fee Schedule Above

($250,000 x 0.900% + $750,000 x 0.750% + $1,500,000 x 0.625% + $500,000 x 0.50%) ÷ $3,000,000
= 0.658%.

    •    The annualized rate is always rounded down to the nearest third decimal place of a percentage point, i.e., 0.658%
         in this example.

Second: Convert the Annualized Rate to a Monthly Rate

                 Monthly Rate = (Number of Days in the Month)/365 x Annualized Rate

                                   (30 Days in April)/365 x 0.658% = 0.054%

    •    The monthly rate is also always rounded down to the nearest third decimal place of a percentage point, i.e.,
         0.054% in this example.
    •    No adjustment is made for the annual day count in leap years - the Firm always divides the number of days in the
         month by 365.

Thus, each member of the client’s household would be charged a fee of 0.054% of the market value of
his or her account after the last day of April. The management fees in this case would be as follows:

                                        Client’s Fees for Month of April

 Person in Client’s               Market Value of               Monthly Fee Rate             Fee Amount for
 Household                        Person’s Account                                           Month of April

 Husband                              $1,250,000                      0.054%                       $675.00

 Wife                                 $1,250,000                      0.054%                       $675.00

 Aunt                                  $500,000                       0.054%                       $270.00

The fee amount is rounded down to the nearest cent.

Payment of Management Fees

Clients may have their monthly or quarterly fees billed through the custodian of the account and
deducted by the custodian and paid to the Firm or billed by the Firm directly to the client, in which case
the client is responsible for remitting a check to the Firm for payment of the fees. It is the Firm’s
preferred method to bill the fees through the custodian, which reduces the cost of collecting fees and
helps the Firm to maintain reasonable management fees.

Other Fees and Expenses

Burgess Investment Management and Research Inc. will not accept commissions or other fees related
to any investments that it selects to purchase for clients, and the Firm will not pay fees to third parties
to refer clients to the Firm (a.k.a. “referral fees”).

Clients, however, will pay additional fees and expenses above and beyond the management fee paid to
the Firm that are associated with the underlying investments in the account, purchasing and selling
investments (brokerage costs), and for services provided by the custodian, e.g., a fee to execute a wire
of funds to the client’s bank account.

For those clients who have chosen to have their assets custodied by RBC Clearing and Custody, a
division of RBC Capital Markets LLC., the Firm has agreed to pay for clients’ custodial fees for accounts
held at RBC Clearing & Custody, which are currently calculated and charged quarterly by RBC Clearing
and Custody at an annualized rate of 0.10% of the assets held in client accounts. Other fees charged by
RBC Clearing and Custody to provide specific services with respect to a client account, e.g., a fee to
execute a wire, are charged directly to the client account. RBC Clearing & Custody does not charge
client accounts for commissions on trades entered by the Firm utilizing RBC Clearing & Custody’s
custodial technology platform that do not involve foreign securities or additional assistance from an
institutional broker. Where foreign securities are traded or additional institutional brokerage services are
required from RBC Capital Markets, LLC. or another broker, client accounts will be charged brokerage
costs for such services.

Costs associated with the underlying investments are the management fees and expenses associated with
index funds (whether open-end mutual funds or ETFs) and closed-end funds. Fees and expenses
...

Item 7 - Types of Clients

Burgess Investment Management and Research Inc. (“the Firm”) provides discretionary investment
advisory services primarily to individuals and their related entities (trusts, corporations, and individual
pension plans).