The Enterprise Investment Company

Item 5: Fees and Compensation

Depending upon the sub-adviser selected, fees are charged quarterly in arrears or in advance.
The sub-adviser’s fee schedule remains separate from those fees charged by EIC and is
typically based on the value of assets under management as of the last day of the calendar
quarter.
Investment management fees will generally be automatically debited from client accounts
on a quarterly basis by the sub-adviser’s qualified custodian of record. The custodian
maintains possession of client assets in accordance with the client authorization in the
Advisory Agreement (“Agreement”). Clients are strongly encouraged to review all
disclosure materials provided at the beginning of any client/firm relationship. Questions
regarding same may be directed to EIC or the selected sub-adviser.

EIC will receive a portion of this fee for the solicitation and referral of the client to the sub-
advisor, for assisting the client in completing their client questionnaire and account opening
paperwork, and for assisting in the development of the initial policy recommendations and
managing the ongoing client relationship. This compensation creates an incentive for EIC
to recommend certain sub-advisers.

When EIC is actively managing a selected portfolio for a client, fees are charged quarterly
in arrears or in advance in accordance with the terms of the Advisory Agreement. The fee
will be charged directly to the client’s account and debited by the qualified custodian.

Form ADV Part 2A/2B: Investment Adviser Brochure and Brochure Supplements              Page 7
The Enterprise Investment Company d.b.a. Pappas Financial

Fee Calculation:

The basic fee schedule for EIC is as follows:

              Assets Under Management            Percentage (fee charged)
              $1-$1,000,000                      1.25%
              $1,000,001-$2,000,000              1.10%
              $2,000,001-$3,000,000              0.95%
              $3,000,001-$5,000,000              .70%
              $5,000,001-$10,000,000             .50%
              $10,000,000 and above              .25%

EIC’s fee is calculated as described above. For clients that were referred to another
adviser, the fee is deducted from the client’s account by the respective sub-adviser and
paid to EIC. Fees are charged in arrears or in advance based upon a percentage of the total
assets under management, including money market balances on the last trading day
of each calendar quarter. The fee is not charged based on a share of capital gains upon or
capital appreciation of the funds or any portion of the funds of an advisory client (i.e.
Performance fees). For clients in which EIC manages the portfolio on a discretionary or
non-discretionary basis, the fee will be charged in arrears or in advance and calculated on
the average daily balance for the preceding period or, for new accounts, the average daily
balance for the partial preceding period.

Fees deduction is authorized by the client in the Advisory Agreement and fees will be
debited at the qualified custodian upon instruction from EIC. In any partial calendar
quarter, fees are pro-rated based on the number of days in which the account is open
during the quarter. All securities and their values are determined by each mutual fund
company, their designee, or other third-party sources unless otherwise noted. Fee
calculations are derived from these valuations.

Financial planning clients may be charged hourly fees ranging from $50-$350 per hour
depending on project resource requirements. This includes charges for planning, specialized
research, and review of outside investments, as well as a total financial review. Hourly fees
are invoiced monthly upon completion of the work performed.

Fees are negotiable under certain circumstances, at the sole discretion of the firm. EIC’s fee
is separate and distinct from the custodian and execution fees. All commissions, custody,
execution fees and other related costs or expenses charged by the qualified custodian and/or
executing broker-dealer (or other financial institution(s) involved with the client account)
are charged separately. Such fees may include custodial fees, charges imposed directly by a
mutual fund or exchange traded fund in the account, which shall be disclosed in the fund's

Form ADV Part 2A/2B: Investment Adviser Brochure and Brochure Supplements         Page 8
The Enterprise Investment Company d.b.a. Pappas Financial

prospectus (e.g., fund management fees and other fund expenses), deferred sales charges,
odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and
taxes on brokerage accounts and securities transactions. EIC does not receive any portion of
these commissions, fees, and costs.

Termination of Advisory Relationship:

The advisory agreement may be canceled at any time, by either party, for any reason upon
receipt of written notice. The agreement can be terminated without penalty within five (5)
days of entering into the contract. Upon termination of an account, any prepaid and/or
unearned fees will be promptly refunded. Similarly, any earned and/or unpaid fees will be
due and payable. Clients retain the right to terminate the advisory agreement without
penalty within five business days after entering into the agreement. The agreement shall
remain non-transferable unless authorized by the client in writing.

Limited Prepayment of Fees:

Under no circumstances do we require or solicit payment of fees in excess of $1,200 more
than six months in advance of services rendered.

Item 7: Types of Clients

EIC provides advisory services to high net-worth individuals, trusts, estates, corporations,
and other business entities. Prior to engaging the firm for services, clients are required to
enter into a written agreement with the firm setting forth the terms and conditions under
which EIC renders its services.

Form ADV Part 2A/2B: Investment Adviser Brochure and Brochure Supplements            Page 9
The Enterprise Investment Company d.b.a. Pappas Financial