Butler Financial Services Inc

Item	5	–	Fees	and	Compensation

Investment	Management:	Fees	are	typically	calculated	as	an	annual	percentage
of	the	assets	under	management.	The	annual	negotiable	fee	range	is:	1.00%	up	to	$3
million;	and	0.75%	above	$3	million	in	assets.	Fees	for	investment	management	are
negotiable.	 The	 fees	 can	 also	 be	 fixed	 or	 “flat,"	 and	 will	 typically	 take	 into
consideration	both	the	amount	of	assets	under	management	and	the	complexity	of
the	client’s	situation	(to	wit,	the	custom	investment	management	services	required).
In	either	case,	the	fee	is	paid	quarterly	at	the	start	of	each	quarter	for	the	advisory
services	 to	 be	 provided	 in	 the	 upcoming	 quarter.	 Now,	 if	 the	 Advisory	 Client	 or	 the
Advisor	discontinues	the	relationship	in	a	given	quarter,	the	Firm	will	refund	any	pre-
paid	fees	on	a	pro-rata	basis.	Conversely,	if	the	relationship	is	terminated	in	a	quarter
in	which	the	fee	has	not	been	collected,	the	Client	will	be	responsible	to	pay	on	a	pro-
rata	basis	the	fee	for	services	that	were	rendered	during	that	period.

Wealth	Management	Services:		The	fee	is	negotiated	with	the	client,	and	specific
to	 the	 on-going	 services	 to	 be	 provided.	 In	 the	 case	 of	 budget	 counseling,	 there
typically	is	a	set-up	fee.	The	on-going	service	fee	is	paid	quarterly,	at	the	start	of	the
quarter	for	the	service(s)	to	be	provided	in	the	upcoming	quarter.	Now,	if	the	Advisory
Client	or	the	Advisor	discontinues	the	relationship	in	a	given	quarter,	the	Firm	will
refund	 any	 pre-paid	 fees	 on	 a	 pro-rata	 basis.	 Conversely,	 if	 the	 relationship	 is
terminated	 in	 a	 quarter	 in	 which	 the	 fee	 has	 not	 been	 collected,	 the	 Client	 will	 be
responsible	to	pay	on	a	pro-rata	basis	the	fee	for	services	that	were	rendered	during
that	period.

Financial	Consulting	Services:		The	fee	is	$325	per	hour.	Fees	are	billed	after	the
service	has	been	provided.	If	the	contracted	relationship	is	discontinued,	the	Client
will	nevertheless	be	responsible	to	pay	the	Firm	for	any	financial	consulting	services
provided	up	to	the	point	of	termination.

In	all	cases,	if	a	client	or	advisor	discontinues	the	advisory	relationship,	ANY	prepaid
fees	will	be	refunded	on	a	pro-rata	basis.

Fee	Payment	Options

As	indicated	in	our	Advisory	Services	Agreement	with	our	Clients,	there	are	two
options	the	Client	may	select	to	pay	for	our	services:

            •   Direct	 Debiting	 (preferred	 by	 the	 firm):	 At	 the	 inception	 of	 the
                relationship	and	each	quarter	thereafter,	we	will	notify	the	custodian
                of	the	amount	of	the	fee	due	and	payable	to	us	through	our	fee	schedule
                and	 contract.	 The	 custodian	 does	 not	 validate	 or	 check	 our	 fee,	 its
                calculation	or	the	asset	on	which	the	fee	is	based.	The	custodian	will
                “deduct”	the	fee	from	the	Client	Account(s)	or,	if	the	Client	has	more
                than	 one	 account	 from	 the	 account	 he/she	 designated	 to	 pay	 our
                advisory	fees.
                    o Each	month,	the	Client	will	receive	a	statement	directly	from	the
                        custodian	 showing	 all	 transactions,	 positions	 and	 credits	 /
                        debits	into	or	from	Client	accounts,	including	the	advisory	fee
                        paid	to	us.
                    o This	will	only	be	permitted	when	the	Advisory	Client	authorizes
                        this	agreement	in	writing	–	via	the	executed	forms,	applications,
                        and	authorizations	of	the	Custodian	or	Plan	Administrator.
                    o The	Firm	also	sends	a	copy	of	the	quarterly	fee	invoice	to	the
                        Client.	 The	 bill	 shows	 the	 amount	 of	 the	 fee,	 how	 it	 was
                        calculated,	and,	if	applicable,	the	value	of	the	assets	(and	date
                        valued)	upon	which	the	bill	is	based.

            •   Pay-by-check:	At	the	inception	of	the	Account	and	each	quarter
                thereafter,	we	issue	to	the	Client	an	invoice	for	our	services	and	the
                Client	pays	us	by	check	or	wire	transfer	within	15	days	of	the	date	of
                the	invoice.

Also,	as	conveyed	in	the	Firm’s	Advisory	Services	Agreement	with	its	Clients,

        The	 Advisory	 Client	 will	 receive	 statements	 directly	 from	 the	 brokerage
        company,	mutual	funds	and	other	money	managers,	as	appropriate.

        The	 Firm	 sends	 a	 copy	 of	 the	 bill	 to	 the	 client	 and,	 when	 appropriate,	 the
        custodian	too.		At	least	quarterly	the	custodian	notifies	the	client	of	how	much
        has	been	paid	to	the	advisor.

Additional	Fees	and	Expenses

Advisory	fees	payable	to	us	do	not	include	all	the	fees	you	will	pay	when	we	purchase
or	sell	securities	in	your	Account(s).	The	following	list	of	fees	or	expenses	are	what
you	pay	directly	to	third	parties,	whether	a	security	is	being	purchased,	sold	or	held

in	your	Account(s)	under	our	management.	Fees	charged	are	by	the	broker-dealer	/
custodian.	We	do	not	receive,	directly	or	indirectly,	any	of	these	fees	charged	to	you.
They	are	paid	to	your	broker,	custodian	or	the	mutual	fund	or	other	investment	you
hold.	The	fees	include:

           • Brokerage	commissions;
           • Transaction	fees;
           • Exchange	fees;
           • SEC	fees;
           • Advisory	fees	and	administrative	fees	charged	by	Mutual	Funds	(MF);
                and	Exchange	Traded	Funds	(EFTs);
           • Advisory	fees	charged	by	sub-advisers	(if	used);
           • Custodial	fees;
           • Deferred	sales	charges	(on	MF	or	annuities);
           • Odd-Lot	differentials;
           • Deferred	sales	charges	(on	MFs);
           • Transfer	taxes;
           • Wire	transfer	and	electronic	fund	processing	fees;
           • Commissions	or	mark-ups	/	mark-downs	on	security	transactions.

In	 addition,	 we	 do	 not	 have	 or	 employ	 any	 “Employee”	 that	 receives	 (directly	 or
...

Item	7	–	Types	of	Clients

We	provide	our	services	to	a	number	of	Clients:

         • Individuals,	including	high	net	worth	individuals

         • Trusts,	estates	and	charitable	organizations

         • Corporations	or	other	business	entities

         • Profit-Sharing	Plan	participants