Richard W Paul & Associates LLC

Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
Portfolio Management Services
The Firm offers a bond strategy in addition to both passive and active Portfolio Management
services. The fees are as follows:
                                         Active Strategy
  Assets Under Management                 Annual Fee                     Quarterly Fee
         0-$1,000,000                        1.5%                          0.375%

                                Richard W. Paul & Associates, LLC

    $1,000,0001-$3,000,000                  1.35%                           0.3375%
    $3,000,0001-$5,000,000                  1.15%                           0.2875%
      $5,000,00 and over                   Negotiable                      Negotiable

                                         Passive Strategy
   Assets Under Management                 Annual Fee                    Quarterly Fee
          0-$1,000,000                        1.0%                          0.25%
    $1,000,0001-$3,000,000                   0.80%                          0.20%
    $3,000,0001-$5,000,000                   0.60%                          0.15%
      $5,000,000 and over                  Negotiable                     Negotiable
The initial fee will be prorated for the number of days remaining in the first quarter and it
shall be based upon the initial account value as report by the Account’s custodian.
Thereafter, the Fee is due monthly in arrears based on the Client’s previous quarter-end
account value as reported by its custodian.
Under some circumstances the Firm’s fees may be lower than the rate schedule and can be
negotiated. Accordingly, rates may vary based on a variety of factors. For example, in
determining fees, rates, and minimums, the Firm may aggregate related accounts and, for
billing purposes, treat them like one account.
The firm may also utilize the services of a Sub-Advisor to manage Clients’ investment
portfolios. We will enter into Sub-Advisor agreements with other registered investment
advisor firms. When using Sub-Advisors, the Client will not pay additional fees. The Sub-
Advisors fees are inclusive of the fees charged by our firm. For this arrangement the above
fee schedule will be utilized.
Termination of Portfolio Management Services
A Client may terminate this service for any reason within the first five (5) business days after
signing the contract without any cost or penalty. Thereafter, the contract may be terminated
at any time by giving seven (7) days written notice to the Firm at Richard W. Paul &
Associates, LLC, 39555 Orchard Hills Place, Suite 100, Novi, MI 48375. Upon notice of
termination, fees will be prorated based upon the number of days that services were
rendered during the termination quarter. Any unearned fees will be returned to the Client.
For example if 90 days are in a quarter and services were rendered for 30 days in the
quarter, the Client will be refunded 67% of that quarter’s fee. (30/90 = .33 * 100 = 33% paid
to Adviser for services with remainder/unearned fees paid to the Client. 100% - 33% =
67%).

Financial Planning Services:
The Firm’s Financial Planning services are provided on an hourly or fixed fee basis in
accordance with the following fee schedule:
Hourly Fee: The Firm assesses an hourly rate of up to $275 an hour for consulting related
financial planning services. The minimum planning fee is $550. The number of hours will
vary depending upon the complexity of the financial situation, the estimate of hours
involved, including preparation and research, areas to be specified and estimated in the

                                Richard W. Paul & Associates, LLC

written agreement for services. The hourly fee can be negotiated with the Client. All fees for
planning services are agreed upon in advance in writing and due at that time.
Fixed Fee: For extremely complex planning financial planning or consulting services the
Client may negotiate a fixed fee with the Firm. The fixed fees range from $550 to $10,000.
The fixed fee range varies and is dependent on the complexity of the financial situation, the
net worth of the individual or business, the estimate of hours involved, including
preparation and research, areas to be specified and estimated in the written agreement for
services.
All financial planning services provided will be completed within six (6) months of the
acceptance date of the financial planning agreement.
Termination of Financial Planning Services
Client may terminate this service for any reason within the first five (5) business days after
signing the contract without any cost or penalty. Thereafter, the contract may be terminated
at any time by giving seven (7) days written notice to the Firm. Upon notice of termination,
Hourly Financial Planning fees will be prorated based upon the number of hours that
services were rendered (If the Firm had completed three (3) hours of a six (6) hour planning
fee, the Client will receive a 3 hour refund of the fee.) and Fixed Fee Financial Planning
services will be prorated based upon the hours worked at a rate of $225 per hour (For
example if a Client paid a $1000 fixed financial planning fee and the Firm completed three
(3) hours of work, the Client will receive a $175 refund. 3 * $275 = $825 - $1000 = $175
Refund to Client).
Client Payment of Fees
Investment management fees are billed monthly in arrears, meaning that we invoice you
after the billing period has ended. Payment in full is expected upon invoice presentation.
Fees are usually deducted from a designated client account to facilitate billing. The client
must consent in advance to direct debiting of their investment account.
Fees for financial plans are due upon signing the agreement.
Additional Client Fees Charged
Custodians may charge transaction fees on purchases or sales of certain mutual funds,
equities, and exchange-traded funds. These charges may include Mutual Fund transactions
...

Item 7: Types of Clients
Description
The Firm generally provides investment advice to individuals, high net worth individuals,
and charitable organizations.
Client relationships vary in scope and length of service.
Account Minimums
The Firm requires a minimum of $500,000 to open an account. We reserve the right to waive
the minimum account size at our discretion.