Wealth Engineering LLC

Item 5 – Fees and Compensation

Description

Investment Advisory Agreement Fee:
The scope of work and fee for an Investment Advisory Service relationship is provided to the Client in writing prior to
the start of the relationship via a formalized contract. Fees are negotiable at the Firm’s discretion.

Wealth Engineering bases its fees on a percentage of assets under management or the applicable minimum annual fee.
The annual Investment Advisory Service Agreement fee is based on a percentage of the investable assets according to
the following schedule:

              Portfolio Value                       Quarterly Rate        Equivalent Annual Rate
              $0-$2,000,000                             0.2125%              .85% of assets under
                                                                               management, plus
              $2,000,001 to $5,000,000                  0.1500%             0.60% of assets under
                                                                               management, plus
              $5,000,001 to $10,000,000                  0.10%              0.40% of assets under
                                                                                 management
              $10,000,001 and above                     0.0625%             0.25% of assets under
                                                                                 management

Wealth Engineering has a minimum account size of $2,000,000 and an annual minimum fee of $17,000 or $4,250 per
quarter. Wealth Engineering, in its sole discretion, may reduce the minimum fee and/or charge a lesser investment
advisory fee based upon certain extenuating factors (e.g. family members, business associates, groups of clients hiring
advisor at one time, etc.). Current Clients under previous contracts may have a different fee than the fee schedule
above.

There are instances where extraordinary financial planning or non-investment-oriented services could arise, under the
Investment Advisory Agreement. When such instances arise, the Firm will notify the Client and, upon the Client’s
approval, an hourly fee of $400 will be billed for these services, upon completion. It should be noted that these instances
are rare. The most common reason is in the death or divorce of a Client. When these occurrences arise, Wealth
Engineering will discuss any additional fees with the Client before any additional fees accrue.

Fee Billing
Investment management fees are billed quarterly, in arrears, meaning that we invoice the Client after the three-

month billing period has ended. Wealth Engineering provides a copy of the Client’s invoice along with their
quarterly investment statements. Wealth Engineering utilizes the market value of all of the Client’s assets on the
last trading day of the previous calendar quarter to determine the fee. The Firm includes cash and cash equivalents
in the value of Clients’ assets in calculating the fee except when the Firm and Client have agreed to otherwise
exclude them from the value of those assets from the calculation. It is clearly noted on the invoice that the Client
must verify the fee calculation in that the custodian will not verify these figures. A date is typically provided on
the invoice that is two to three weeks following the end of the quarter informing the Client that their fee will be
deducted on this date. The Client authorizes Wealth Engineering to directly debit this fee from the Client’s
investment account, via the initial custodian account application.

Other Fees and Expenses
Wealth Engineering occasionally utilizes third party bond brokers that transact bond and CD purchases and sales
under the direction of the Advisor. These bond brokers are compensated by commissions, and it is Wealth
Engineering’s responsibility to reduce these commissions wherever possible. These commissions for the purchase
or sale of municipal bonds are significantly higher than the transactions to buy separate issue stocks or mutual
funds. Wealth Engineering fully understands that Clients are paying higher commissions in this segment of the
portfolio, but these separate issue bonds and CDs are recommended due to their lack of ongoing expenses.

It is imperative to understand that Wealth Engineering does not receive any of the above commissions nor do
they receive any enticement to direct trades to these third-party brokers.

In addition, there are charges by mutual funds and exchange-traded funds to their shareholders, when applicable.
These fees and expenses are described in each fund’s prospectus. These fees and expenses will generally be used
to pay management fees for the funds, other fund expenses, account administration (e.g., custody, brokerage, and
account reporting), and a possible distribution fee. The Client should review both the fees charged by the fund[s]
and the fees charged by Wealth Engineering to fully understand the total fees being paid to receive and implement
financial recommendations.

Item 7 – Types of Clients

Wealth Engineering generally provides investment advice to individuals, families, pension and profit-sharing plans,
trusts, estates, corporations, or business entities.

Client relationships vary in length of service.