Black Coral Financial Advisors LLC

ITEM 5 – FEES AND COMPENSATION

Unless otherwise indicated below, fees that are specified herein are negotiable or may be
waived in Black Coral ’s discretion. Lower fees for comparable services described below
may be available from other sources.
   a. Fees for Advisory Services - Financial Counseling
Comprehensive Financial Counseling
Employer Sponsored Programs. Black Coral charges a counseling fee for each individual
in the Comprehensive Financial Counseling program. Fees will vary based on a number
of factors, including the complexity of the services provided, whether tax preparation is
included, the size of the corporate program, and location and travel needs as well as Black
Coral's overall relationship with the client. Each program is separately designed and
contracted for.
The first fee model is currently offered to a number of clients and provides for an annual
fee. For corporate clients using this fee model, Black Coral currently offers its service for
an annual fee per individual of between $0 and $100,000. The annual fee may be adjusted
for cost of living expenses. Both the fee and fee adjustment are negotiable and may vary
significantly based on the factors above. In addition, Black Coral reserves the right to
make exceptions, on a client by client basis, to the current fee ranges.
Black Coral's fees associated with the work performed for the individual is paid to Black Coral
either partially or completely by the corporate client or the individual to whom services are
being provided.
Black Coral charges a fee for each individual receiving financial counseling services
through a program other than an employer sponsored program. Black Coral currently
offers its financial counseling services to individuals for an annual fee of between $0 and
$100,000. The annual fee may be adjusted for cost of living expenses after the first year
of service.
Both the fee and fee adjustment are negotiable and may vary significantly based on the
factors cited above. In addition, Black Coral reserves the right to make exceptions, on a
client by client basis, to the current fee ranges.
Seminars
Fees vary depending on the number of days of the seminar program, the number of
participants involved and the customization of the program. Fees range from $5,000 to
$250,000 and Black Coral reserves the right to charge on a per day or per participant basis
which may increase or decrease such fees.
   a. Fees for Advisory Services - Investment Accounts
                                                                                         11 | P a g e

For investment advisory services provided to clients generally pay advisory fees based on
a percentage of assets (generally net of any margin debit balance) in the account.
Depending on the strategy selected, clients may pay Execution Charges (defined below)
in addition to the advisory fees.
The advisory fee paid by each client is set forth on the fee schedule signed by the client
for the applicable strategy. Actual fees paid may be negotiated and may vary from those
in the fee schedule below. A client may pay more or less fees than similar clients
depending on the particular circumstances of the client, size, additional or differing levels
of servicing or as otherwise agreed with specific clients.
Black Coral may receive investment advisory fees on these accounts, as described below,
and Black Coral personnel may receive compensation related to the investment advisory
fees charged by Black Coral. Unless otherwise indicated below, Black Coral does not
charge a separate Black Coral investment advisory fee on portions of portfolios comprised
of mutual funds and/or ETFs recommended and managed by Black Coral.
Black Coral accounts can be held on either the Fidelity Platform or Charles Schwab Platform.
Commission schedules charged by Fidelity or Charles Schwab as well as the available
managers may vary depending on whether the assets are held on the Fidelity Platform or the
Charles Schwab investment platform.
Mutual fund fees and expenses, including any redemption fees for liquidating any mutual
fund shares, are described in the relevant fund prospectuses and are paid by the mutual
funds but are ultimately borne by clients as shareholders in the funds. Such fees and
expenses are separate and apart from Black Coral’s fees.

Investment Accounts –Managed by Black Coral
The advisory fees set forth below represent the maximum fee that may be charged by
Black Coral, absent special circumstances. Fees may be negotiable based on account
objectives, level of service, other assets under management or other relationships that the
client has with Black Coral and other relevant facts and circumstances. The fees charged
below is the Black Coral fee. There may be additional fees, commissions and/or execution
costs charged by Fidelity or Charles Schwab for each account.
Although Black Coral does not charge an additional advisory fee for assets invested in
unmanaged mutual funds or ETF accounts such assets are subject to advisory and various
other fees and expenses paid to the service providers of each mutual fund.
Black Coral may provide these services on a fee basis that is based upon a percentage of
the market value of the assets being managed. The investment management fee charged
shall vary depending upon the market value of each client’s assets under management per
account as follows:

                                                                                        12 | P a g e

                     Assets Under Management                    Annual Fee
                     First $1,000,000                           1.00%
                     Next $1,000,000                            0.95%
                     Next $1,000,000                            0.90%
                     Next $1,000,000                            0.85%
                     Next $1,000,000                            0.80%
                     Amounts over the first $5,000,000          0.75%
...

Types of Clients
Clients include individuals and their private investment vehicles, corporations and other
business entities, trusts, estates, charitable organizations, banks, thrift institutions,
pensions and profit sharing plans.
Account Requirements
To open or maintain an Advisory Account with Black Coral clients are required to sign an
investment advisory account agreement that, among other things, describes the nature of
the investment advisory authority granted to Black Coral, and select an investment
objective reflecting the client’s investment goals and risk tolerance.