Valpey Financial Services LLC

Item 5 – Fees and Compensation

Investment Management Services
VFS’s fee schedule for investment management services, which include financial planning services, is
as follows:

       Total Net Asset Value                   Annual Rate
       First $1,000,000                        0.85%
       Next $1,000,000                         0.75%
       Next $1,000,000                         0.65%
       Over $3,000,000                         0.25%

Our advisory fees are deducted directly from the client’s account(s). The specific manner in which fees
are charged is established in the client’s asset management agreement. Fees are charged quarterly in
advance and are based on the average daily balance of the account during the previous quarter. Fees
are prorated for accounts that are opened or closed during a calendar quarter. Upon the closing of an
account, unearned fees will be promptly refunded.

Our minimum annual household fee for ongoing investment management services is $6,000, which
may be reduced or waived at the firm’s discretion. We will aggregate, or group, household accounts for
the purposes of achieving lower fee breakpoints. Fees are not negotiable, but VFS may quote alternative
fee schedules when planning and investment circumstances dictate. The agreed-upon fee schedule will
be reflected in the client’s asset management agreement. Clients receive account statements reflecting
our advisory fee directly from the account custodian.

Financial Planning & Consultation
Financial planning is offered free of charge to investment management clients. It is also offered on an
hourly basis at our standard hourly rate, which is currently $405/hour. Creating, reviewing and adjusting
a financial plan usually takes two to six hours. Subsequent updates generally take from one to three
hours. VFS can provide an advance estimate for any financial planning or consultative service. Hourly

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                                  VALPEY FINANCIAL SERVICES, LLC
                                 PART 2A OF FORM ADV – FIRM BROCHURE

services may be limited or unavailable depending on time constraints.

Other Fees Incurred by Clients
When we manage client assets, our clients will incur other fees in addition to our advisory fees. These
include brokerage transaction costs and may include custodial fees, exchange fees, transfer fees or taxes,
administrative fees, mutual fund fees and exchange traded fund (ETF) fees, when applicable. VFS
primarily recommends exchange traded funds, “no-load” or “load-waved” mutual funds and/or fixed
securities not held in exchange traded funds or mutual funds.

Clients could invest in a mutual fund, exchange traded fund or other investment vehicle directly,
without our engagement. In that case, the client would not receive the services we provide which are
designed, among other things, to assist in determining which options are most appropriate to the client’s
financial condition and objectives. Clients should review all fees associated with the investments we
recommend and the brokerage and custodial services they receive, in addition to our fees, to fully
understand the fees you will pay for our services.

Item 7 – Types of Clients

VFS provides investment management and financial planning services to individuals, including high
net worth individuals, as well as to trusts, estates, corporations, and charitable organizations.

In order to maintain the highest level of service to existing clients, we accept only a limited number of
new clients into our practice each year. Our minimum requirement to accept a new client is $750,000
in assets to be managed by our firm. This minimum may be reduced or waived at our discretion.