Eclectic Associates Inc

ITEM 5 - FEES AND COMPENSATION
Fee Schedule

Investment Management Services
Eclectic charges advisory fees for investment management services. Eclectic‘s advisory
fees are charged based on a percentage of the client’s total assets under management,
per the following schedule:

 Assets Under                  Annual
 Management                    Fee
 First $1,000,000              1.00%
 Next $2,000,000               0.75%
 Next $2,000,000               0.50%
 Amounts after and above
 the first $5,000,000          0.35%

For individual fixed income investments, such as individual bonds and certificates of
deposit, and illiquid investments such as private placements, which are generally held to
maturity, the first year’s fee is as shown above. Subsequent years’ fees are 0.35% of
the value of those types of investments. This does not apply to mutual funds since they

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do not have an expected maturity date. We charge the balance of clients’ investments
according to the table above.

Some accounts are under different fee schedules honoring prior agreements. At our
sole discretion, our standard fee schedule can be negotiated based on a number of
factors, which include but are not limited to “grandfathered” accounts, related accounts,
and other structures that we may consider in special situations. At our discretion,
services are provided without charge to employees and their family members and in
other limited circumstances, which sometimes include charities. Eclectic aggregates
client accounts within the same household for purposes of calculating the advisory fee
rate applicable to each client. We generally make pro-rations for additions or
withdrawals greater than $9,975 made during the client’s billing period. The client’s fee
calculation will reflect any pro-rated additions and/or reductions.

See also Item 13 - Review of Accounts for additional billing methodology relating to
illiquid investments held in client accounts.

Setup Charges (One-Time Charge)
We charge a one-time setup charge of up to $2,000 at the start of a new investment
management services relationship. It partially covers the initial analysis, allocation,
selection of appropriate investments and setting up the client’s account(s) in our
recordkeeping system. We assess the setup charge when the client’s account(s) is/are
opened with Eclectic. At our discretion, we sometimes negotiate or waive the setup
charge.

Consulting Services
At a client’s request, Eclectic will provide financial planning/consulting services on an
hourly or fixed rate basis. We base fixed fee consulting on an estimate of the time it will
take to complete a project using our hourly rate of $350. The fixed fee may be
negotiable depending on the nature and complexity of each client’s circumstances. Our
fixed rate generally ranges between $350 and $7,000 but could be higher depending on
the scope of the project.

At our discretion, Eclectic provides any of the above services to accounts belonging to
our current and former employees and family members (“Proprietary Accounts”), certain
legacy clients, and to charities and/or foundations and their associated persons at a
reduced rate or free of charge.

Billing Method

Investment Management Services
Eclectic’s advisory fees are payable in advance at the beginning of each four-month
billing period. We generally charge one third of the annual fee each four months based
on the market value of the client’s portfolio as of the last business day of the prior billing
period. The formula used for the calculation is as follows: (Annual Rate) x (Total Assets

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Under Management at Period-End) / 3. Fees billed on assets held in client accounts that
receive valuations less than every four months will be calculated using the most recent
pricing data available through the product sponsor and/or the client’s custodian.

For new client accounts, the first payment is calculated based on the value of the
portfolio on the last business day of the month that the client’s assets are
deposited/transferred into accounts under our management and will be payable the
following month.

With client authorization, Eclectic will instruct the custodian to automatically withdraw
our advisory fee from the client’s account. Typically, we authorize the custodian to
withdraw our advisory fee from the client’s account during the first month of each billing
period. All clients will receive brokerage statements from the custodian no less
frequently than quarterly. The custodian statement will show the deduction of the
advisory fee for those clients who authorize the advisory fees to be withdrawn directly
from their custodian account. In addition, Eclectic sends a receipt to the client after fees
are deducted.

Consulting Services
Eclectic’s hourly rate is $350. For fixed fee arrangements, we will provide a quote at the
start of the relationship and charge the client after the work is completed.

Other Fees and Expenses
Eclectic’s fees do not include custodian fees. Clients pay all brokerage commissions,
stock transfer fees, margin charges, foreign exchange, and settlement fees, and/or
other charges incurred in connection with transactions in accounts, from the assets in
the account. These charges are in addition to the fees a client pays to Eclectic. See

ITEM 7 - TYPES OF CLIENTS
Eclectic provides discretionary and non-discretionary investment advisory and financial
planning services to individuals, high net worth individuals, trusts and estates, and
individual participants of retirement plans. In addition, we provide advisory services to
pension and profit sharing plans, charitable organizations, and businesses.

Account Requirements
Generally, Eclectic requires clients to maintain a minimum portfolio size of $400,000.
On rare occasions and at Eclectic’s discretion, significant fund withdrawal may result in
a request for additional deposits to continue with management of accounts. We also
may choose to combine family accounts to meet the account size minimum. Eclectic
may reduce or waive the account minimum requirements at our discretion.

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