The Welch Group LLC

Item 5 - Fees and Compensation

  A.                                     PORTFOLIO DESIGN/MANAGEMENT
       In the event the client desires, the client can engage The Welch Group to design an investment
       portfolio and provide ongoing corresponding investment management services on a negotiable fee-only
       basis. The Welch Group shall charge an annual investment management fee based upon a percentage of
       the market value of the assets being managed by The Welch Group. The investment management fee shall
       generally vary between 0.30% and 1.20% as follows:

                       Market Value of Portfolio                   % of Assets
                       Less than $1,000,000                          1.20%
                       $1,000,001 - $3,000,000                       1.00%
                       $3,000,001 - $5,000,000                       0.90%
                       $5,000,001 - $7,500,000                       0.80%
                       $7,500,001 - $10,000,000                      0.70%
                       $10,000,001 - $25,000,000                     0.60%
                       $25,000,001 - $50,000,000                     0.50%
                       $50,000,001 - $100,000,000                    0.45%
                       >$100,000,000                                 0.30%

       To the extent provided in the written agreement between The Welch Group and the client, The Welch
       Group's annual investment advisory fee shall include, to the extent specifically requested by the client,
       financial planning and consulting services (generally subject to a $500,000 assets under management
       minimum-see below). In limited situations (i.e. non- investment management clients, and investment
       management clients that require a disproportionate amount of consulting services), The Welch Group
       may charge an hourly fee for investment-related consulting services.

       Please Note: Clients who engage us to participate in our Wealth Management Program are subject to a
       minimum annual investment management fee of $6,000.
       Please Also Note: If you maintain less than $500,000 of assets under The Welch Group's management,
       and are subject to the $6,000 minimum fee, you will pay a higher percentage annual fee than the 1.2%
       referenced in the fee schedule at Item 5 above. ANY QUESTIONS: The Welch Group's Chief
       Compliance Officer remains available to address any questions that a client or prospective client may
       have regarding advisory fees.

       Family Office Services. Clients who engage The Welch Group to participate in our Family Office Services
       Program are subject to a minimum annual investment management fee of $27,000.
       Concierge Services. Some clients request concierge services that are not part of The Welch Group’s
       traditional investment and financial planning services. These concierge services can include bill payment
       coordination and/or providing other personal high-touch finance-related services for clients. Additional
       fees for these services are established on a client-by-client basis.

       Fee Dispersion. The Welch Group, in its discretion, may charge a lesser investment advisory fee, charge a
       flat fee, waive its fee entirely, or charge a fee on a different interval, 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, complexity of the engagement, anticipated services to be

     rendered, grandfathered fee schedules, employees and family members, courtesy accounts, competition,
     negotiations with client, etc.). Please Note: As result of the above, similarly situated clients could pay
     different fees. In addition, similar advisory services may be available from other investment advisers for
     similar or lower fees. QUESTIONS: The Welch Group’s Chief Compliance Officer remains available to
     address any questions that a client or prospective client may have regarding advisory fees.

B.                  FINANCIAL PLANNING AND CONSULTING SERVICES (STAND-ALONE)

     To the extent it is specifically requested to do so, The Welch Group may provide its clients with a broad
     range of financial analysis and consulting services (including non-investment- related matters) on a stand-
     alone separate fee basis. The Welch Group will charge a fee (fixed fee and/or hourly) for these services.
     The Welch Group generally charges a one-time negotiable fixed fee of between $3,500.00 and $35,000.00
     for financial analysis. Prior to engaging The Welch Group to provide financial analysis and/or consulting
     services, the client will generally be required to enter into a Financial Advisory Agreement with The
     Welch Group setting forth the terms and conditions of the engagement, describing the scope of the
     services to be provided, and the portion of the fee that is due from the client prior to The Welch Group
     commencing services.

                           REPORTING SERVICES AND AGGREGATE DATA STORAGE

     The Welch Group offers investment data storage and periodic comprehensive reporting services, which
     can incorporate all of the client's investment assets, including Excluded Assets.

A. Clients may elect to have The Welch Group's advisory fees deducted from their custodial account. Both
   The Welch Group's Financial Advisory Agreement and the custodial/clearing agreement may authorize the
   custodian to debit the account for the amount of The Welch Group's investment advisory fee and to directly
   remit that management fee to The Welch Group, in compliance with regulatory procedures. In the limited
   event that The Welch Group bills the client directly, payment is due upon receipt of The Welch Group's
...

Item 7 - Types of Clients

      The Welch Group's clients shall generally include individuals, business entities, pension and profit-
      sharing plans, and trusts. The Welch Group will generally require an assets under management minimum
      of $500,000 for investment management services, inclusive of financial planning services. The Welch
      Group, in its sole discretion, may charge a lesser investment management fee and/or waive or minimum
      asset requirement 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,
      complexity of the engagement, anticipated services to be rendered, grandfathered fee schedules,
      employees and family members, courtesy accounts, competition, negotiations with client, etc.). Please
      Note: As result of the above, similarly situated clients could pay different fees. In addition, similar advisory
      services may be available from other investment advisers for similar or lower fees.