Burton Enright Welch

Item 5 - FEES AND COMPENSATION

INVESTMENT MANAGEMENT FEES
Our investment management fees are based upon a percentage of each client’s assets under
management with the Firm. Fees are not generally negotiable. Our Firm’s fees are billed on a pro-

rata annualized basis monthly or quarterly in advance or quarterly in arrears based on the value of
your account either on the last day of the billing period or based on the time-weighted daily
average of your account of the previous billing period.
We charge fees based on standard tiered fee schedules, ranging from 1.50% to 0.30%2 of the
client’s portfolio, per annum. We do not have a minimum fee. We believe our fees are market-
based and competitive.
The foregoing are Burton Enright Welch’s standard fees. The Firm reserves the right to assess a
different fee based on the nature and complexity of the client’s account. As a result, arrangements
with any particular client may vary from those of another client.
Clients typically authorize the custodian of their investment accounts to debit Burton Enright Welch
advisory fee directly from clients’ accounts. As part of this process, clients are advised and
acknowledge the following:
- The client’s independent qualified custodian sends account statements at least quarterly
    showing all disbursements, including the amount of the advisory fees paid to us;

-     Clients provide written authorization to their custodian permitting us to be directly paid from
      their account; and,

-     Clients are advised to verify the Firm’s fee charged to their account as shown on the custodial
      statement.

To the extent that a client authorizes the use of margin, and margin is thereafter employed by our
portfolio managers in the management of the client’s portfolio, the market value of the client’s
account and corresponding fee payable by the client to Burton Enright Welch will be increased.
As a result, in addition to understanding and assuming the additional principal risks associated with
the use of margin, clients authorizing margin are advised of the potential conflict of interest
whereby the client’s decision to employ margin correspondingly increases the management fee
payable to the Firm. Accordingly, the decision as to whether to employ margin is left to the sole
discretion of client.

FINANCIAL PLANNING AND CONSULTING FEES
We charge on an hourly or flat fee basis for financial planning and consulting services. The total
estimated fee, as well as the ultimate fee that we charge you, is based on the scope and
complexity of our engagement with you. Our hourly fees are $350. Flat fees generally range from
$2,500 to $10,000.

We require a retainer of fifty-percent (50%) of the ultimate financial planning or consulting fee with
the remainder of the fee directly billed to you and due to us within thirty (30) days of your financial
plan being delivered or consultation rendered to you.

401(k) PLAN CONSULTING SERVICES FEES
We offer retirement plan consulting services at a negotiated fixed fee or based upon a percentage
of the plan assets. The exact fee is negotiated in advance of services rendered and is disclosed in
the executed written agreement that we sign with the client company.

We bill the client company for retirement plan consulting services the negotiated fee in advance
of services rendered and as disclosed in the executed written agreement that we sign with the

2   The lower rate was recently introduced to our fee schedule for high-net-worth clients.

company. Fees are calculated and billed quarterly in advance. In certain circumstances, the fees
are calculated and billed quarterly in arrears.

THIRD PARTY INVESTMENT MANAGER PLATFORMS
BEW utilizes third party platforms, such as SEI Investments Management Corporation (SIMC), to
assist in implementing an investment strategy for certain clients. Please note that the third- party
money managers, investment vehicles, and platforms selected generally charge their own fees.
Some of these fees are either included in the above BEW fee schedule or charged separately.

Any client placed in a third-party investment platform will be provided with the appropriate
disclosure documents, detailing the fee arrangements, when specific recommendations are
provided and prior to the implementation of any strategy.

Third party money managers establish and maintain their own billing process which we have no
control over. In general, they will describe their billing practices in their separate written disclosure
documents.

GENERAL FEE DISCLOSURE
We believe our investment management fees are competitive with the fees charged by other
investment advisors in the San Francisco Bay Area for comparable services. However, comparable
services may be available from other sources for lower fees than those charged by Burton Enright
Welch.

We do not provide clients advice as to the tax deductibility of our advisory fees. Clients are
directed to consult a tax professional to determine the potential tax deductibility of the payment
of advisory fees.

CUSTODIAN AND BROKERAGE FEES
Clients incur certain charges imposed by their custodians and other third parties such as 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. Additionally,
clients will incur charges by the executing broker-dealer in the form of brokerage commissions and
transaction fees on the investment transactions entered into for their account(s). All of these
charges, fees and commissions are in addition to Advisor’s investment management fee.

FUND DISCLOSURES
Investment vehicles such as mutual funds, closed-end funds, exchange traded funds and
alternative investment funds offer a wide range of objectives and strategies; the types of securities
held by such funds vary widely depending upon the specific objectives and strategies of the
...

Item 7 - TYPES OF CLIENTS

Our clients include individuals, families, trusts and estates, pension and profit-sharing plans,
corporations and other business entities. We do not have an investment minimum for new clients.
We are selective about who we work with to ensure a high level of service for all clients. We have
established a $2,500 minimum fee for written financial plans. These minimums may be modified or
waived in our sole discretion.
Burton Enright Welch’s services are not appropriate for everyone. Particularly for smaller accounts,
other investment advisors may provide somewhat similar services for lower compensation,
although still others may charge more for similar services.