Capitol Family Office Inc

Item 5: Fees and Compensation

A. Fee Schedule

Portfolio Management Fees

The following schedule is a guideline only, subject to a maximum annual percentage of
2%. The advisory fee is calculated using the tiered fee schedule below on each Account
using the value of the assets in the Account on the last business day of the prior billing
period. All fees and account value levels are subject to negotiation at the sole discretion of
the IAR.

        Total Assets Under Management              Annual Fees
        $0 - $499,000                              2.00%

        $500,000 - $999,999                        1.75%

        $1,000,000 - $2,999,999                    1.50%

        $3,000,000 - $9,999,999                    1.00%

        Total Assets Under Management          Annual Fees
        $10,000,000 - And Up                   0.75%

The final fee schedule will be memorialized in the client’s advisory agreement. Clients
may terminate the agreement without penalty for a full refund of CFO's fees within five
business days of signing the Investment Advisory Contract. Thereafter, clients may
terminate the Investment Advisory Contract immediately upon written notice.

Pension Consulting Services Fees

Asset-Based Fees for Pension Consulting

        Total Assets Under Management          Annual Fee
        All Assets                             1.50%

The advisory fee is calculated using the value of the assets on the last business day of the
prior billing period. These fees are negotiable.

The final fee schedule will be memorialized in the client’s advisory agreement.

Clients may terminate the agreement without penalty for a full refund of CFO's fees
within five business days of signing the Investment Advisory Contract. Thereafter, clients
may terminate the pension consulting agreement immediately upon written notice. CFO
bills based on the balance on the first day of the billing period.

Financial Planning Fees

Fixed Fees

The fixed rate for creating client financial plans is between $250 and $30,000. These fees
are negotiable.

Clients may terminate the agreement without penalty, for full refund of CFO’s fees, within
five business days of signing the Financial Planning Agreement. Thereafter, clients may
terminate the Financial Planning Agreement generally upon written notice.

B. Payment of Fees

Payment of Portfolio Management Fees

Asset-based portfolio management fees are withdrawn directly from the client's accounts
with client's written authorization on a quarterly basis. Fees are paid in advance.

Payment of Pension Consulting Fees

Asset-based pension consulting fees are withdrawn directly from the client's accounts
with client's written authorization on a quarterly basis, or may be invoiced and billed
directly to the client on a quarterly basis. Fees are paid in advance.

Payment of Financial Planning Fees

Financial planning fees are paid via check or credit card.

Fixed financial planning fees are paid 100% in advance, but never more than six months
in advance.

Assets Under Advisement

Fees for assets under advisement are paid via credit card or check on a quarterly basis.
Fees are paid in advance.

C. Client Responsibility For Third Party Fees

Clients are responsible for the payment of all third party fees (i.e. custodian fees,
brokerage fees, mutual fund fees, transaction fees, etc.). Those fees are separate and
distinct from the fees and expenses charged by CFO. Please see Item 12 of this brochure
regarding broker-dealer/custodian.

D. Prepayment of Fees

CFO collects fees in advance. Refunds for fees paid in advance but not yet earned will be
refunded on a prorated basis and returned within fourteen days to the client via check, or
return deposit back into the client’s account.

For all asset-based fees paid in advance, the fee refunded will be equal to the balance of
the fees collected in advance minus the daily rate* times the number of days elapsed in
the billing period up to and including the day of termination. (*The daily rate is calculated
by dividing the annual asset-based fee rate by 365.)

Fixed fees that are collected in advance will be refunded based on the prorated amount of
work completed at the point of termination.

E. Outside Compensation For the Sale of Securities to Clients

Neither CFO nor its supervised persons accept any compensation for the sale of
investment products, including asset-based sales charges or service fees from the sale of
mutual funds.

Item 7: Types of Clients

CFO generally provides advisory services to the following types of clients:

       ❖      Individuals
       ❖      High-Net-Worth Individuals

There is no account minimum for any of CFO’s services.