Bates Financial Advisors Inc

Item 5 Fees and Compensation
Fees are billed quarterly in arrears based on the previous quarter-end account value. Fees may be
deducted from client accounts or invoiced directly to the client.

INVESTMENT PORTFOLIO MANAGEMENT SERVICES FEES

Our annual fees for Investment Portfolio Management Services are based upon a percentage of assets
under management and generally range from 0.25% to 1.00%.

A minimum of $100,000 of assets under management is required for this service. This account size
may be negotiable under certain circumstances. A minimum quarterly fee of $175 will be assessed.
Bates Financial Advisors, Inc. may group certain related client accounts for the purposes of achieving
the minimum account size and determining the annualized fee.

Limited Negotiability of Advisory Fees: Although Bates Financial Advisors, Inc. has established the
above fee schedule(s), we retain the right to negotiate alternative fees on a client-by- client basis.
Client facts, circumstances and needs are considered in determining the fee schedule. These include
the complexity of the client, assets to be placed under management, anticipated future additional
assets; related accounts; portfolio style, account composition, and reports, among other factors. The
specific annual fee schedule is identified in the contract between the adviser and each client.

We may group certain related client accounts for the purposes of achieving the minimum account size
requirements and determining the annualized fee.

Discounts, not generally available to our advisory clients, may be offered to family members and
friends of associated persons of our firm.

FINANCIAL PLANNING FEES

Bates Financial Advisors, Inc.'s Financial Planning fee will be determined based on the nature of the
services being provided and the complexity of each client's circumstances. All fees are agreed upon

prior to entering into a contract with any client.

Our Financial Planning fees may be calculated and charged on an hourly basis, ranging from $75 to
$1,000 per hour. Although the length of time it will take to provide a Financial Plan will depend on each

client's personal situation, we will provide an estimate for the total hours at the start of the advisory
relationship.

Alternatively, our Financial Planning fees may be calculated and charged on a fixed fee basis, typically
ranging from $500 to $15,000, depending on the specific arrangement reached with the client.

We may request a retainer upon completion of our initial fact-finding session with the client; however,
advance payment will never exceed $1,200 for work that will not be completed within six months. The
balance is due upon completion of the plan.

Financial Planning Fee Offset: Bates Financial Advisors, Inc. reserves the discretion to reduce or
waive the hourly fee and/or the minimum fixed fee if a financial planning client chooses to engage us
for our Investment Portfolio Management Services.

The client will be billed quarterly in arrears.

CONSULTING SERVICES FEES

Bates Financial Advisors, Inc.'s Consulting Services fee will be determined based on the nature of the
services being provided and the complexity of each client's circumstances. All fees are agreed upon
prior to entering into a contract with any client.

Our Consulting Services fees are calculated and charged on an hourly basis, ranging from $75 to
$1,000 per hour. An estimate for the total hours is determined at the start of the advisory relationship.

Our Consulting Services fees are calculated and charged on a fixed fee basis, typically ranging from
$500 to $15,000, subject to the specific arrangement reached with the client.

The client will be billed quarterly in arrears.

GENERAL INFORMATION

Termination of the Advisory Relationship: A client agreement may be canceled at any time, by
either party, for any reason upon receipt of 30 days written notice. As disclosed above, certain fees are
paid in advance of services provided. Upon termination of any account, any prepaid, unearned fees will
be promptly refunded. In calculating a client's reimbursement of fees, we will pro-rate the
reimbursement according to the number of days remaining in the billing period.

Mutual Fund Fees: All fees paid to Bates Financial Advisors, Inc. for investment advisory services are
separate and distinct from the fees and expenses charged by mutual funds and/or ETFs to their
shareholders. These fees and expenses are described in each fund's prospectus. These fees will
generally include a management fee, other fund expenses, and a possible distribution fee. If the fund
also imposes sales charges, a client may pay an initial or deferred sales charge. A client could invest
in a mutual fund directly, without our services. In that case, the client would not receive the services
provided by our firm which are designed, among other things, to assist the client in determining which
mutual fund or funds are most appropriate to each client's financial condition and objectives.

Accordingly, the client should review both the fees charged by the funds and our fees to fully
understand the total amount of fees to be paid by the client and to thereby evaluate the advisory

services being provided.

Our firm receives 12b-1 fees in connection with mutual funds purchased or held for advisory client
accounts. This compensation is separate and in addition to our advisory fees. This practice presents a
conflict of interest because we have an incentive to recommend mutual funds for which we receive
12b-1 fees rather than solely based on your needs. We can select or recommend, and in many
instances will select or recommend to our advisory clients, mutual fund investments in share classes
that pay 12b-1 fees when clients are eligible to purchase share classes of the same funds that do not
pay such fees and are less expensive. This presents a conflict of interest. You are under no
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Item 7 Types of Clients
Bates Financial Advisors, Inc. 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 (other than plan participants)
    •   Charitable organizations
    •   Corporations or other businesses not listed above
    •   State or municipal government entities

As previously disclosed in Item 5, our firm has established certain minimum account requirements both
initially and to maintain an account, based on the nature of the service(s) being provided. For a more
detailed understanding of those requirements, please review the disclosures provided in each
applicable service.