Atala Financial Inc

Item 5 Fees and Compensation
In addition to the information provided in the Advisory Business section, this section provides details
regarding Firm services along with descriptions of each service’s fees and compensation arrangements.

       ADVISORY SERVICES COMPENSATION DESCRIPTION

INVESTMENT MANAGEMENT SERVICES

Depending upon the type of advisory service to be provided, clients generally have a choice regarding
the manner in which fees will be calculated for such services. Options for calculating fees include the
following:

   •   Percentage of Assets under Management: Clients will be charged as a percentage of assets
       under management with us, according to the schedule set forth in the client management
       agreement between us and the client. The fee schedule will vary depending on the type of
       investment strategy, but the annual fee will not exceed two percent (2%); or
   •   Flat Quarterly or Annual Fees: Clients will be charged at an agreed upon flat annual fee, paid
       quarterly, or flat quarterly fee depending on the scope and complexity of the client’s needs.

The annual fee being charged to the client will be set forth and identified in the investment
management service agreement and/or the most recent fee schedule between our firm and that client.
We retain the ability to negotiate other fee schedules depending on the size of the account, type of
account, the level of client service required and other factors we consider relevant, including timing of
client relationship.

For the fee charged as a percentage of assets under management, fees are charged quarterly in advance
based on the market value of the client's account(s), as determined by the custodian, on the last
business day of the quarter. Cash and assets which are invested in shares of mutual funds, exchange-
traded funds, annuities we manage, individual securities, collective trusts, unit investment trusts and/or
closed-end funds shall be included in the calculation of the value of the client's assets under
management with us for purposes of computing our fee.

For partial quarters, fees are pro-rated. All unearned fees will be refunded to the client in the event the
client terminates our services. Unless other arrangements are made, fees are directly debited from a
client's account(s), and each client is required to provide the qualified custodian of the client's
account(s) written authorization to deduct the fees described.

The custodian sends the client a statement, at least quarterly, indicating the amount of our fees and all
amounts disbursed from the account to our firm for our management fees. We have internal controls
that seek to verify that the custodian is withdrawing fees accurately in accordance with your
agreement, however, we strongly encourage clients independently verify the accuracy of the fee
calculation, as the custodian will not verify the calculation. If a client does not have sufficient cash in

   ATALA Financial Inc.
the account(s) to cover the payment of fees, some or all of the securities held by the client will be
liquidated in order to pay the fees.

The custodian is responsible for sending the client account statements, clients will not receive an
account statement or a fee invoice from us. Asset-based fees are always subject to the management
agreement between the client and our firm, and we generally retain the right to amend our fee schedule
with 30 days prior written notice to the client.

When the client engages third-party managers, they will sign an agreement agreeing to pay the
manager separate fees that the manager will deduct separate from our fees. The combined fee for Atala
and the third-party manager will never exceeds 2%.

PLANNING AND CONSULTING SERVICES

For clients who retain our firm for its investment management services, there is generally no charge for
standard financial planning or consulting services. Other clients who retain the firm solely for financial
planning or financial consultation, or whose financial planning or financial consultation is complex in
nature, will require a separate agreement and be charged fees based on the nature of the services being
provided, who is providing the services and the complexity of the client's circumstances. Fees
generally do not exceed $2,000 per hour. Financial planning fees are generally calculated and charged
on a flat fee basis based upon the expected amount of work under the engagement. If a client
terminates financial planning and consulting services after we have begun the work but before
completion, we will charge a termination fee equal to the hours then spent on your services at a rate
outlined in the client’s agreement executed prior to our financial professional commencing planning.
Financial planning fees and the termination fee are negotiable. We will reduce or waive the financial
planning fees and/or termination fee in certain circumstances.

We provide you with an exact fee quote before you authorize us to begin our work. The specific fee
being charged to the client will be set forth and identified in an agreement between us and each client.
We will withdraw financial planning fees from a client's bank account only with the prior consent of
the client.

Although the length of time it will take to provide a financial plan or financial consultation depends on
each client's personal situation, we will provide a timing estimate at the start of the planning
relationship. For those who will be charged for financial planning or financial consultation, we will
invoice the client for the services, and the fees will generally be due and payable upon delivery of the
completed financial plan to the client or completion of the services, as applicable.

Your financial professional will update your financial plan upon request or when your objectives or
financial situation change. If a financial plan is updated, the fee will be dependent on the nature of the
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Item 7 Types of Clients
We offer our firm’s services to individuals, high net worth individuals, corporations and other business
entities, pension and profit-sharing plans, and estates and trusts.

       MINIMUM ACCOUNT SIZE

In general, ATALA requires a minimum account size of $2,500,000 to open and maintain an advisory account.
At our discretion, we retain the right to waive this minimum account size. For example, accounts of immediate
family members typically have the minimum waived. We will generally agree to combine the account values of
family members living in the same household to determine the applicable advisory fee. For example, we will
combine account values for you and your minor children, joint accounts with your spouse, and other types of
related accounts. Combining account values will increase the asset total, which could result in your paying a
reduced advisory fee based on the available breakpoints in our fee schedule.