Davis Private Wealth LLC

Item 5: Fees and Compensation

Portfolio Management Fees

Clients enter into one of two fee arrangements. Generally, clients elect to pay management fees to DPWL
separately from the brokerage expenses of the account. Accordingly, client accounts pay a management
fee, plus the cost of transactions in the account. The brokerage expenses may take the form of asset-
based pricing, meaning that the broker/dealer charges the account a flat-rate percentage to cover all
brokerage expenses, or these expenses may be assessed on a per-trade basis. Please see Item 12 -
Brokerage Practices for additional information.

The fees noted above are separate and distinct from the internal fees and expenses charged by third party
managers, mutual funds, ETFs (exchange traded funds) or other investment pools to their shareholders
(generally including a management fee and fund expenses, as described in each fund’s prospectus or
offering materials). The client should review all fees charged by managers, funds, brokers, DPWL and
others to fully understand the total amount of fees paid by the client for investment and financial-related
services.

Portfolio Management Fees

               Total Assets Under Management             Annual Fees
               First $500,000                            1.25%

               Next $2,500,000                           0.80%

               Balance over $3,000,000                   0.60%

Portfolio management fees, when held with Charles Schwab are generally payable quarterly, in advance,
and are calculated based on the value of the assets on the last business day of the prior billing period.
Portfolio management fees, when held with Betterment or Altruist are generally payable monthly, in
arrears, and are calculated based on the value of the assets on the last business day of the prior billing
period. If management begins after the start of a quarter or month, fees will be prorated accordingly.
With client authorization and unless other arrangements are made, fees are normally debited directly
from client account(s). The minimum portfolio value is generally set at $200,000. DPWL may, at its
discretion, make exceptions to the foregoing or negotiate special fee arrangements where DPWL deems
it appropriate under the circumstances.

These fees are generally negotiable, and the final fee schedule is attached as Exhibit I of the Investment
Advisory Contract. Clients may terminate the agreement without penalty for a full refund of DPWL's fees

within five business days of signing the Investment Advisory Contract. Thereafter, clients or DPWL may
terminate the Investment Advisory Contract generally with 10 days' written notice, subject to any written
notice requirements in the agreement. In the event of termination, any paid but unearned fees will be
promptly refunded to the client based on the number of days that the account was managed, and any
fees due to DPWL from the client will be invoiced or deducted from the client’s account prior to
termination.

Neither DPWL nor its supervised persons accept any compensation for the sale of investment products,
including asset-based sales charges or service fees from the sale of mutual funds.

Financial Planning/Consulting Fees

The fee for financial planning/consulting can be charged either by a fixed fee or by the hour. With the
hourly option, the fee is based on the actual time spent and billed in 15-minute increments between $100-
$400 per hour. An estimate will be provided at the onset of the relationship. Clients will be invoiced
monthly based upon the hours spent the previous month.

A flat fixed fee project may be charged within a range of $2,500 - $10,000 depending on the complexity
and scope of services requested, as a one-time fee or on-going. The stated fixed fee will never exceed the
range on an annual basis. Fixed fees are typically charged quarterly in advance. There will never be an
instance where $1,200 or more is charged six or more months in advance.

Retainer Services

For client(s) who require on-going financial planning needs, we charge a monthly retainer ranging from
$200–$2,000 depending on complexity. These fees are billed monthly in advance. The fee is based upon
the amount of customization of the services provided.

All retainer services include a one-time, minimum $750 initial Strategy Fee for the initial financial plan.
These client(s) may or may not be asset management clients, as asset management is billed in addition to
the retainer fee.

Sub-Advisor Investment Management Fees

The Firm will provide Investment Management Services as a Sub-Advisor to Advisors that contract with
the Firm to do so. The Firm receives an annual fee based on the total assets in each third-party adviser’s
clients’ accounts for which the Firm provides sub-advisory investment management services. The Advisor
will pay the Firm the sub-advisory fees on a quarterly basis, either in advance or arrears depending on the
arrangement. The annual fee is 40% of the fee that is billed to the client. The clients of the Advisor should
refer to the Advisor’s disclosure documents for full information on the Advisor’s advisory services and
fees.

Item 7: Types of Clients

DPWL generally provides advisory services to the following types of clients:

        ❖       Individuals
        ❖       High-Net-Worth Individuals
        ❖       401K, Profit Sharing and DB Plans

With some exceptions, the minimum portfolio value eligible for conventional investment advisory services
is $200,000. Under certain circumstances and in its sole discretion, DPWL may negotiate such minimum.