Welch Investment Group LLC

ITEM 5 – FEES AND COMPENSATION

5a: Fee Schedules
Investment Management Fees
           Assets Under Management                                           Annual Fee (%)

            $0 to $1,000,000                                                 0.80%

            $1,000,001 and above                                             0.60%

For purposes of determining value, securities and other instruments traded on a market for which actual
transaction prices are publicly reported are valued at the last reported sale price on the principal market in
which they are traded.

The fee includes the time and activities necessary to work with your attorney and/or accountant in reaching
agreement on solutions, as well as assisting them in implementation of all appropriate documents. We are not
responsible for attorney or accountant fees charged to you as a result of the above activities.

Compensation for our services will be calculated in accordance with what is set in the client’s agreement. We
may modify the terms of any agreement by written changes submitted to the client for signature. All Investment
Advisors are required to disclose to their clients that lower fees for comparable services may be available from
other sources.

5b: Fee Payments Options
Investment Management Fees
Welch Investment Group fees are paid from your account by the custodian when we submit an invoice to them.
The invoice we submit shows the amount of fees, the value of your assets on which the fees are based, and
the specific manner in which the fees are calculated. If there is insufficient cash in your account to pay your
fees, an equal balance of securities in your portfolio may be sold to pay our fee. In addition to our fees, there
may be custodial, mutual fund or similar third party management fees and charges.

5c: Third Party Fees
All brokerage commissions, stock transfer fees, and other similar charges incurred in connection with
transactions for the account will be paid out of the assets in the account and are in addition to the investment
management fees paid to us. While we take measures to ensure the fees charged are accurate, it is your
responsibility to ensure the amount of fee charged is correct. In addition to statements sent by us, you will
receive statements directly from these brokers, custodians or mutual funds or other investments you hold. We
strongly urge you to compare these statements for accuracy.

5d: Fee Payments
Investment Management Fees

     ADV PART 2 A BROCHURE                                                                              PAGE 5 OF 10

Welch Investment Group fees are paid quarterly in arrears, with payment due within 10 days from the date of
the invoice. A late charge of 1 ½ percent per month will be charged upon any balance unpaid within one
month of the invoice date. The fee will be equal to the respective percentage per annum below based on the
market value of the Account on the last trading day of the previous quarter. Our fee is determined by taking
the percentage rate we charge, divided by four, times the market value of the account at quarter end. The
market value is the sum of the values of all assets in the account, adjusted by any margin debt. Fees for
partial quarters at the commencement of our agreement will be billed on a pro-rated basis contingent on the
number of days the account was open during the quarter.

5.d.1: Termination
Either Welch Investment Group or our clients can terminate our agreement upon receipt of written notice to the
other party, to include written agreement to changes by the client.

When an agreement is terminated, all assets may need to be transferred from the current custodian. You will
be responsible for paying all fees including full quarterly custodial administrative fees, account closure fees,
mutual fund fees and all trading costs due to the termination. Custodian may assess additional fees for
transfer of illiquid investments. If there is insufficient cash in the account, the liquidation of some securities
may be used to pay the fees. Prior to termination of an agreement, we can provide a good-faith estimate of
these fees.

5e: Other Investment Compensation
Welch Investment Group does not accept commission for the sale of securities or other investment products,
including asset-based sales charges or service fees from the sale of mutual funds.

types of clients:
       § Individuals / High-Net-Worth Individuals
       § Trusts
       § Estates
       § Charitable Organizations
       § Corporations or Other Business Entities
       § Pension Consulting

Minimum Account Size
Welch Investment Group does not have an account minimum. However, we may decline to accept clients with
smaller portfolios.