Burt Asset Management Inc

Item 5 – Fees and Compensation                                                                     Page 3
BAM is a fee-based investment advisor and we do not work on commission.

For continuous investment advisory services, BAM charges fees based on a percent of dollar value of
assets under management.

1% per year of the first $1,000,000 of average market value. .75% per year of the amount above
$1,000,000 of average market value.

An hourly rate of $80 per hour is charged for individual one-time investment consultation for clients
who do not wish or need continuous investment advisory service. $80 per hour is also charged for
specific financial planning services.

Fees charged on a percentage basis to clients are billed quarterly in arrears and calculated on the
average market value. Fees charged on an hourly basis are due immediately upon completion of
services. Both rates may be negotiable under special circumstances. The specific manner in which fees
are charged by BAM is established in a client’s written agreement with BAM.

Some client’s prefer to establish a fixed quarterly rate so they can budget the cost of investment
management and advice. This is negotiable and established in the client’s written agreement. The fixed
rate is subject to periodic review and can be re-negotiated to adjust for changes in the value of assets
under management. Typically, fees are paid to BAM by check, however, clients have the option to
authorize the payment of management fees directly from their investment account, by the custodian,
to BAM. To facilitate this, a copy of the invoice will be sent to the client at the same time it is sent to
the custodian. The custodian will send quarterly statements to the client showing all disbursements,
including advisory fees. Clients will provide written authorization permitting BAM to be paid directly
from their accounts by the custodian.
Investment advisory contracts may be terminated by either party at any time without penalty through
written notice to the other party. Any fees due, will be prorated to the day written termination notice is
received.

BAM’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which shall be incurred by the client. Clients may incur certain charges imposed by custodians,
brokers, third party investment and other third parties such as fees charged by managers, custodial
fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees,
and other fees and taxes on brokerage accounts and securities transactions. Mutual funds and exchange
traded funds also charge internal management fees, which are disclosed in a fund’s prospectus.
Such charges, fees and commissions are exclusive of and in addition to BAM’s fee, and BAM shall not
receive any portion of these commissions, fees, and costs.

Item 12 further describes the factors that BAM considers in selecting or recommending broker-dealers
for client transactions and determining the reasonableness of their compensation (e.g., commissions).

Item 7 – Types of Clients                                                                           Page 4

BAM provides portfolio management services to individuals, high net worth individuals and trusts. There
is no minimum account size.