Walton Financial

Item 5 – Fees and Compensation
How You’re Charged and How We’re Compensated
Asset Management Programs
Clients who elect to receive asset management services through one or more of Walton Financial asset
management programs will generally pay Walton Financial and their advisor for those services with an
annual asset management fee based on a percentage of assets under management, including cash and
money market positions. Annual asset management fees generally range between 0.10% and 1.5%. Your
specific fee and fee structure will be listed in your client agreement. Certain managed account programs
have lower maximum annual fee amounts, and fee schedules will vary among programs. Clients are urged
to carefully review and discuss the contents of this Brochure with their advisor, including descriptions of
the various programs and services offered, the fees and charges clients will pay, the means by which
Walton Financial and your advisor are compensated, and the conflicts of interest that exist between the
client and Walton Financial and your advisor in respect to each program or service offered, to determine
the most appropriate programs or services for your specific needs.

PPS Program Fee Schedules
Following are the maximum allowable fee schedules for Commonwealth’s various PPS programs.

In addition to the annual management fee, and unless otherwise agreed between the client and the
advisor, clients participating in the PPS Custom Program will pay transaction charges as described in the
“Other Fees and/or Costs” section below.

Clients participating in the PPS Custom Program may pay more or less than clients might otherwise pay if
purchasing the services separately. There are several factors that determine whether such costs would be
more or less, including, but not limited to, the following:

       Size of the account
       Types of securities and strategies involved
       Amount of trading effected by the advisor
       Actual costs of such services if purchased separately

The advisory fees charged for the services provided by Commonwealth and Walton Financial, including
research, supplemental advisory, and client-related services offered through the PPS Custom Program
(Transactions), may exceed those of other similar programs.

Transaction charges. In addition to the platform fee, transaction charges of $15 for buys and sells and a
maximum of $3 for periodic investment plans and systematic withdrawal plans will apply in the following
mutual fund families: Dodge & Cox, Vanguard, and Dimensional Fund Advisors (DFA), except that DFA sells
are $0. For trader-assisted transactions, an additional $5 fee is charged to Walton Financial. A transaction
charge of $1 per contract for purchases and sales of options will apply. A $5 quarterly paper document
fee will apply account by account to all accounts not enrolled in electronic delivery of statements and
confirmations.

PPS Select Program
Clients participating in the PPS Select Program will pay a total account fee that consists of a combination
of an advisor fee and a program fee.

The maximum allowable advisor fee in the PPS Select Program is as follows:

In addition to the annual advisor fee, all clients participating in PPS Select will pay an annual program
fee.

There are several different PPS Select model portfolios with program fees that vary; however, the
maximum fee within the PPS Select program is as follows:

1 Themaximum annual advisor fee for certain account sizes and types may be negotiated.
2Commonwealth will charge a minimum annual program fee of $600 ($150 quarterly) for certain accounts, which may exceed
the maximum annual program fee percentage based on account size.

Commonwealth performs fee billing on our firm’s behalf. In most cases, the annual account management
fees are payable quarterly in advance and are computed as one-quarter of the annual fee based on the
account’s AUM on the last business day of the previous calendar quarter.

To the extent that you hold positions in your account for which pricing data is not readily available,
Commonwealth receives quarter-end values from alternative investment issuers or other service
providers which are used when calculating billable AUM for our clients. Neither Walton Financial nor
Commonwealth engages in an independent valuation of your account assets and relies on valuations
provided by the investment issuers or other service providers. Walton Financial (via Commonwealth and
further via the account custodian) will provide periodic account statements which include the market
value of the alternative investment based on information received from the investment issuer or other
service provider. In providing these account statements, or any other valuation information to you, (i)
Walton Financial relies on the valuation information provided by the manager of the alternative
investment or other service provider, (ii) the valuation information used to determine the billing fee is
based on estimates that may be outdated as of the dates of the account statements, (iii) the products
final valuations may be higher or lower than the values reflected in the periodic account statements and
(iv) while Commonwealth will adjust material estimated fee billings on a best efforts basis on Walton
Financial’s behalf, neither Walton Financial nor Commonwealth is under no obligation to provide notice
or compensation to you for differences in estimated alternative investment valuations.

*Account values in the Commonwealth reporting system will be used for our firm’s quarterly fee
calculations for advisory accounts custodied at National Financial Services (“NFS”). Although account
holdings and asset valuations should generally match, month-end market values reflected in
Commonwealth's Practice 360 reporting system sometimes differ from those provided by NFS on their
month-end statements. The three most common reasons why these values may differ are (i) differences
...

Item 7 – Types of Clients
Walton Financial, generally provides advisory services to the following types of clients:

       Individuals (other than high net worth individuals)
       High net worth individuals
       Pension and profit-sharing plans
       Charitable organizations
       Corporations or other businesses not listed above

Walton Financial’s managed account programs generally require clients to invest $50,000. In some cases,
account balances may be combined at the household level to satisfy the account minimum. Walton
Financial reserves the right in our sole discretion to waive the account minimum requirement.