D'Orazio & Associates Inc

Item 5           Fees and Compensation
   A. Clients can engage D’Orazio Wealth Advisors to provide fee-only discretionary investment
      advisory services on a fixed quarterly retainer basis, or stand-alone financial planning services on
      a fixed fee basis as described below.

         INVESTMENT ADVISORY SERVICES
         D’Orazio Wealth Advisors charges an annual fixed fee for ongoing financial planning and
         discretionary investment advisory services (the “Annual Advisor Compensation”), which is
         payable in quarterly installments. The amount of the Annual Advisor Compensation is based upon
         the agreed-upon and combined value of the client’s “Assets Under Advisement,” which means: all
         assets that D’Orazio Wealth Advisors will actively manage, plus the value of the client’s assets
         held in employer-sponsored retirement plan accounts where D’Orazio Wealth Advisors is not
         authorized to execute trades, but for which the client is engaging D’Orazio Wealth Advisors to
         provide investment advice.

         The Annual Advisor Compensation will be initially calculated based on the agreed-upon value of
         Assets Under Advisement as of the date the client signs the Financial Planning and Investment
         Management Agreement. Thereafter, the amount of the Annual Advisor Compensation will be
         recalculated based on the agreed-upon value of Assets Under Advisement established during the
         annual review meetings held between the Client and D’Orazio Wealth Advisors. The Annual
         Advisor Compensation is generally based on the market value of the client’s combined Assets
         Under Advisement as follows:

         Assets Under Advisement                           Annual Advisor Compensation
         Up to $2,000,000                                  $10,000.00
         $2,000,001 - $4,000,000                           $15,000.00

$4,000,001 - $6,000,000                           $22,500.00
$6,000,001 - $8,000,000                           $30,000.00
$8,000,001 - $15,000,000                          $50,000.00
$15,000,001 +                                     Negotiable

Without limiting the above, D’Orazio Wealth Advisors’ Annual Advisor Compensation includes
an additional 0.50% of the value of assets under advisement for client-related private foundation
accounts. When calculating the Annual Advisor Compensation, D’Orazio Wealth Advisors may
also determine to aggregate account values for related clients (such as spouses and minor children
sharing the same residence) for the purpose of reducing the overall fee.

In certain limited cases and as an exception to the above, D’Orazio Wealth Advisors may extend a
courtesy discount to family members of existing clients whose Assets Under Advisement are below
$1,000,000. In those limited cases, the Annual Advisor Compensation is generally based on the
market value of the client’s combined Assets Under Advisement as follows:

Assets Under Advisement                           Annual Advisor Compensation
Up to $500,000                                    $3,000.00
$500,001 - $1,000,000                             $5,000.00

The Annual Advisor Compensation contemplates the value of cash and cash equivalent positions
in the account. Although D’Orazio Wealth Advisors’ Annual Advisor Compensation is generally
non-negotiable, D’Orazio Wealth Advisors, in its sole discretion, may reduce its Annual Advisor
Compensation based upon certain criteria (i.e., whether the client is in the SMA Program,
anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to
be managed, complexity of financial affairs, related accounts, account composition, negotiations
with client, etc.).

Clients enrolled in the SMA Program for equity strategies will incur an additional fee that typically
ranges between 0.15% and 1.15% of designated assets under management. This fee varies by client
depending upon a number of factors, including but not limited to the size of the account, the
underlying mix of assets, investments in factor strategies of third-party index licenses and other
such considerations. Additionally, transaction and/or custodial fees charged by the client’s broker-
dealer or custodian, as well as fees imposed at the mutual-fund or ETF level, may cause a client to
pay a higher total fee. A detailed anticipated fee breakdown will be provided to clients and reviewed
prior to deploying assets in any SMA Program strategy. The fee for accounts invested in a SMA
Program equity strategy is billed quarterly in arrears based on the average of the month-end market
values of the assets, which is prorated for partial periods.

Clients enrolled in the SMA Program for fixed-income strategies will incur an additional fee
ranging between 0.18% to 0.25% of the value of designated assets under management, billable
monthly in arrears, and prorated for partial periods. This fee is based on the sum of the market value
of each account on the last day of such month, which is calculated using an annual blended rate as
determined by the amount of total assets that D’Orazio assigns to the fixed-income strategies with
the particular SMA Program manager.

As noted above, the SMA Programs may offer breakpoints at either or both the household and firm
level, which lowers the fee that a client will ultimately pay. This presents a conflict of interest
because D’Orazio Wealth Advisors could be incentivized to recommend an SMA Program to
reduce applicable fees, rather than on the basis of the client’s financial situation.

    Certain clients may have accepted different pre-existing service offerings from D’Orazio Wealth
    Advisors and may therefore receive services under different fee schedules than those set forth above
    which correspondingly impacts a client’s net account performance. Moreover, as a result of all of
...

Item 7           Types of Clients
         D’Orazio Wealth Advisors’ clients generally include individuals, high net worth individuals, trusts,
         and estates. D’Orazio Wealth Advisors generally requires initial minimum account assets of
         $100,000 under advisement as reflected in Item 5.A and seeks to provide investment advisory
         services to clients having at least $1,000,000 in assets designated for D’Orazio Wealth Advisors’
         management. D’Orazio Wealth Advisors, in its sole discretion, may reduce its Annual Advisor
         Compensation and/or waive or reduce its minimum asset preference based upon certain criteria
         (i.e., whether the client is participating in the SMA Program, anticipated future earning capacity,
         anticipated future additional assets, dollar amount of assets to be managed, complexity of financial
         affairs, related accounts, account composition, negotiations with client, etc.).