Vawter Financial Ltd

Item 5 Fees and Compensation

    How We Are Compensated

    Wealth Advisory Service:
    VF charges on a flat fee or a percentage of assets under management for our Wealth Advisory service.
    We will provide clients with the option to select whether they wish to be charged on a flat fee or fee
    based on the percentage of assets under management for our Wealth Advisory services. Annualized
    fees are billed on a pro-rata basis quarterly in advance based on the value of the account(s) on the
    last day of the previous quarter. Our firm bills on cash unless indicated otherwise in writing. The fee
    will be based on client complexity as well as the total assets the client has custodied with our
    Custodian and will be renegotiated at the end of every odd year at a minimum (2019, 2021, etc.). The
    fee for our service is negotiable and will be payable in advance on a quarterly basis depending on
    what the client selects in the signed Client Care Agreement. We will provide clients with the option
    to have their fee debited from their portfolio or the client may choose to be invoiced at the beginning
    of each quarter. VF does not receive fees, commissions or other remuneration of any kind from
    advisors, originators, sponsors, or distributors of investments or products recommended to clients.
    Our only source of income is from the client.
    Option 1 – Flat Fee

    The fee will be based on client complexity and will have an annual inflation adjustment/increase of
    3% thereafter. VF will review client fee levels at least every two years or when there has been a
    significant increase or decrease in client complexity. Any fee adjustment, outside of the 3% annual
    inflation increase, will be presented for the client’s approval before a change is made. The fee for our
    service is negotiable and will be payable in advance on a quarterly basis. This fee may be debited
    from your Portfolio, as your signature on the Client Care Agreement authorizes this practice, or you
    may choose to be invoiced at the beginning of each quarter. The fee below is for comprehensive
    planning and includes all accounts that are linked, and regularly updated, on your VF personal
    website. VF does not accept nor receive fees, commissions or other remuneration of any kind from
    advisors, originators, sponsors, or distributors of investments or products recommended to you. Our
    only source of income is from you directly.

ADV Part 2A – Firm Brochure                        Page 5                                      Vawter Financial, Ltd.

    Our flat fee option has an annual minimum of $5,000 and a maximum of $50,000 depending on client
    complexity and the resources required.

    Option 2 – Tiered Fee

     Assets Under Management                    Annual Fee                         Quarterly Fee
           $0 to $1,000,000                       1.00%                               0.250%
       $1,000,001 to $5,000,000                   0.50%                               0.125%
      $5,000,001 to $10,000,000                   0.35%                              0.0875%
     $10,000,001 to $25,000,000                   0.25%                              0.0625%
           Over $25,000,000                     Negotiable                          Negotiable
    Other Types of Fees & Expenses

    Some investment accounts may be subject to annual maintenance fees charged by the account
    custodian, usually on or around the anniversary of the date the account was opened. Clients have the
    option of having these fees drawn from the associated account or paying by check.

    Processing fees and recordkeeping fees may apply to some account types, such as individual 401(k)s.
    If applicable, these fees will be disclosed to the client in advance of their agreement to open/own
    these types of accounts. These fees are payable to the service provider, not VF.
    Clients will incur transaction charges for trades executed in their accounts. These transaction fees
    are separate from our fees and will be disclosed by the firm through which the trades are executed.
    Charles Schwab & Co. Inc. (“Schwab”) does not charge transaction fees for U.S. listed equities and
    exchange traded funds.
    Also, clients will pay the following separately incurred expenses: charges imposed directly by a
    mutual fund, index fund, or exchange traded fund which shall be disclosed in the fund’s prospectus
    (i.e., fund management fees and other fund expenses).
    VF does not receive any portion of the other types of fees and expenses described in this section.
    Direct Deduction of Advisory Fees
    In cases where VF directly deducts advisory fees from Client accounts, Clients understand the
    following:
         a) The client’s independent custodian sends statements at least quarterly showing the market
            values for each security included in the Assets and all account disbursements, including the
            amount of the advisory fees paid to our firm;
         b) Clients will provide authorization permitting our firm to be directly paid by these terms. Our
            firm will send an invoice directly to the custodian; and
         c) Our firm sends a copy of our invoice to the client upon their request.

    Client Care Agreement Termination
    VF’s Client Care Agreement may not be modified or amended except in writing and signed by both
    the client and VF. Either party may terminate our Client Care Agreement within five (5) business days
    as of the date of acceptance without penalty. After the five-day period, our Client Care Agreement

ADV Part 2A – Firm Brochure                        Page 6                                    Vawter Financial, Ltd.

    may be terminated by either party upon thirty (30) days written notice to the other party. VF shall
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Item 7 Types of Clients

    We typically provide investment advice to individuals, trusts, and small business owners, including
    those with 401(k)s or pension plans. In some cases, we may refer a small business owner with an
    employer plan to an unaffiliated plan servicing representative to manage the plan and its assets. We
    receive no additional compensation from this arrangement.
    The minimum Wealth Advisory fee for clients who sign an advisory agreement is $5,000. The
    minimum value to open and maintain an investment account is $200,000 and/or subject to the
    requirements of the account custodian.