Shepherd Financial Partners LLC

Item 5: Fees and Compensation

Investment Management Services
Shepherd Financial Partners provides discretionary investment advisory services on a wrap or
non-wrap fee basis. If a client determines to engage the Firm on a wrap fee basis, the client will
pay a single fee for bundled services (i.e., investment management, brokerage, custody).
However, if the client determines to engage the Firm on a non-wrap fee basis the client will
select individual services on an unbundled basis, paying for each service separately (i.e.,
investment management, brokerage, custody).

Non-Wrap Fee Basis
If Shepherd Financial Partners provides discretionary investment advisory services on a non-
wrap fee basis, the Firm’s annual investment advisory fee shall vary (typically up to 1.25% of the
total assets placed under the Firm’s management/advisement) and shall be based upon various
objective and subjective factors, including, but not limited to, the amount of the assets placed
under the Firm’s management, the level and scope of financial planning and consulting services
to be rendered, and the complexity of the engagement.

Shepherd Financial Partners Wrap Program
Shepherd Financial Partners provides investment management services on a wrap fee basis in
accordance with the Firm’s investment management wrap fee program (the “Program”). Under
the Program, the Firm is able to offer participants discretionary investment management
services, for a single specified annual Program fee, inclusive of trade execution, custody,
reporting, account maintenance, investment management fees and fees charged by
independent managers and/or separately managed accounts. The current annual Program fee
shall vary (up to 1.30% of the total assets placed under the Firm’s management/advisement)
and shall be based upon various objective and subjective factors, including, but not limited to,
the amount of the assets placed under the Firm’s management, the level and scope of financial
planning and consulting services to be rendered, and the complexity of the engagement.

The Wrap Fee Program Brochure is presented to all prospective Program participants in
accordance with the disclosure requirements of Part 2A Appendix 1 of Form ADV. All
prospective Program participants should read both Shepherd Financials Brochure and the Wrap
Fee Program Brochure, and ask any corresponding questions that they may have, prior to
choosing to participate in the Program.

LPL shall serve as the custodian for Program accounts.

Under an asset-based pricing arrangement, the amount paid to the custodian for account
commission/transaction fees is based upon a percentage (%} of the market value of the client's
account (generally, the greater the market value, the lower the %}. This differs from
transaction-based pricing, which assesses a separate commission/transaction fee against the
client's account for each account transaction. When engaged on a wrap fee basis, the Firm shall

be responsible for paying the asset-based pricing fee to the custodian. Clients who engage the
Firm on a non-wrap fee basis shall be responsible for paying the asset-based pricing fee to the
custodian.

Financial Planning and Consulting Services (Stand-Alone)
Shepherd Financial Partners provides financial planning and/or consulting services (including
investment and non-investment related matters, including estate planning, insurance planning,
etc.) on a stand-alone separate fee basis. The Firm’s planning and consulting fees are negotiable
but generally range from $2,000 to $250,000 on a fixed fee basis, and from $100 to $500 on an
hourly rate basis, depending upon the level and scope of the service(s) required and the
professional(s) rendering the service(s).

Clients may elect to have the Firm’s advisory fees deducted from their custodial account. Both
the Firm's Investment Advisory Agreement and the custodial/clearing agreement may authorize
the custodian to debit the account for the amount of the Firm's investment advisory fee and to
directly remit that management fee to the Firm in compliance with regulatory procedures. In
the limited event that the Firm bills the client directly, payment is due upon receipt of the
Firm’s invoice. The Firm shall deduct fees and/or bill clients quarterly in advance, based upon
the market value of the assets on the last business day of the previous quarter, prorating and
adjusting for inflows and outflows during the billing period.

As discussed below, unless the client directs otherwise or an individual client’s circumstances
require, the Firm shall generally recommend that LPL Financial (“LPL”) serve as the broker-
dealer/custodian for client investment management assets. Broker-dealers such as LPL charge
brokerage commissions and/or transaction fees for effecting certain securities transactions (i.e.,
transaction fees are charged for certain no-load mutual funds, commissions are charged for
individual equity and fixed income securities transactions). In addition to the Firm’s investment
management fee, brokerage commissions and/or transaction fees, clients will also incur,
relative to all mutual fund and exchange traded fund purchases, charges imposed at the fund
level (e.g., management fees and other fund expenses).

Asset Based Pricing Limitations
The Firm may recommend that its clients enter into an asset-based pricing agreement with the
account custodian. Under an asset-based pricing arrangement, the amount that the client will
pay the custodian for account commission/transaction fees is based upon a percentage (%) of
the market value of the client’s account (generally, the greater the market value, the lower the
%). This differs from transaction-based pricing, which assesses a separate
commission/transaction fee against the client’s account for each account transaction. Account
investment decisions are driven by security selection and anticipated market conditions and not
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Item 7: Types of Clients

Shepherd Financial Partners’ clients generally include individuals, high net-worth individuals,
business entities, pension and profit-sharing plans, trusts, estates, and charitable organizations.
The Firm, in its sole discretion, may charge a lesser investment management fee based upon
certain criteria (i.e., anticipated future earning capacity, anticipated future additional assets,
dollar amount of assets to be managed, related accounts, account composition, negotiations
with client, etc.).