Fairchild Financial Advisors Inc

Item 5      Fees and Compensation

             INDIVIDUAL PORTFOLIO MANAGEMENT SERVICES FEES
Fairchild Financial’s annual advisor fee for Portfolio Management Services is based
upon a percentage of assets under management. The maximum annual fee charged is
1.25%. The following fee schedule with breakpoints starting at $1,000,000 under
management:

          Asset Tier            Max Tier              Annual Fee%
          First $1,000,000      $1,000,000            1.00%
          Next $1,000,000       $2,000,000            0.80%
          Over $2,000,000       $100,000,000          0.70%

Our fees are billed quarterly, in advance, at the beginning of each calendar quarter
based on the preceding end of quarter market value (or fair market value in the absence
of market value). Fees are debited from the account in accordance with the client
authorization in the AssetMark Client Services Agreement. Related client accounts are
linked for the purposes of determining the annualized fee. Upon termination, clients will
receive a full pro-rata refund of any unearned fees.

Our advisory fee does not include the AssetMark Platform Fee, any Third-Party
Strategist or Manager Fee, as applicable, and custody fees. The exact percentage-
based fee can be found in AssetMark’s Client Billing Authorization. Clients should also
refer to AssetMark’s Platform Disclosure Brochure for complete fee details.
A minimum of $25,000 of assets under management is required for portfolio
management services. This account size is negotiable under certain circumstances.
Limited Negotiability of Advisory Fees: Although Fairchild has established the
aforementioned advisor fee, we retain the discretion 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, reports, among other factors. The specific annual
fee schedule is identified in the AssetMark Client Billing Authorization.
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, are provided to family
members and friends of associated persons of our firm.

                            ASSETMARK PROGRAM FEES
Accounts on the AssetMark Platform are assessed a total Account Fee. This Account
Fee includes Fairchild Financial’s advisory fee plus the fees for utilizing the AssetMark
Platform (together the “Advisory Fee”). Additionally, the Account Fee also includes fees
payable to any third-party Discretionary Manager. Fees and compensation for using the
AssetMark Platform, including Discretionary Manager fee schedules, are provided in the
AssetMark Platform Disclosure Brochure, Appendix 1. After the AssetMark Platform Fee
and any third-party Discretionary Manager fees are deducted from the Advisory Fee, the
resulting net fees are paid to Fairchild Financial.
Client fees under this program are payable quarterly, in advance, based on assets
under management. Clients may terminate AssetMark accounts at any time and receive
a full pro-rata refund of any unearned fees.
Clients should note that program fees are charged as part of a wrap fee arrangement. In
a wrap fee arrangement, clients pay a single fee for advisory, brokerage and custodial
services. Client’s portfolio transactions will be executed without commission charge in a
wrap fee arrangement. In evaluating such an arrangement, the client should also
consider that, depending upon the level of the wrap fee charged by the broker dealer,
the amount of portfolio activity in the client’s account, and other factors, the wrap fee
may or may not exceed the aggregate cost of such services if they were to be provided
separately.
AssetMark sponsor disclosure documents (Form ADV Part 2A and/or Form ADV Part
2A, Appendix 1 “wrap program”) will further describe the specific fees charged within the
program, minimum account requirements, billing arrangements and service termination
provisions. AssetMark does not control the billing features of any Third-Party Manager
Programs. AssetMark and Third-Party Manager fees are non-negotiable.

                         OTHER FEES AND COMPENSATION
Management and associated persons of our firm are separately licensed as registered
representatives of LPL Financial (LPL), a broker dealer and investment adviser. In their
capacity as registered representatives of LPL, certain Dually Registered Persons may
earn commissions for the sale of securities or investment products that they recommend
for brokerage clients. They do not earn commissions on the sale of securities or
investment products recommended or purchased in advisory accounts through Fairchild
Financial Advisors. Clients have the option of purchasing many of the securities and
investment products we make available through another broker-dealer or investment
adviser. However, when purchasing these securities and investment products away from

Fairchild Financial, they will not receive the benefit of the advice and other services we
provide.
This presents a conflict of interest to the extent that these individuals recommend that a
client invest in a security which results in a commission being paid to the individuals.
Clients are not under any obligation to engage these individuals when considering the
implementation of recommendations. The implementation of any or all
recommendations is solely at the discretion of the client.
LPL does not offer investment management or brokerage services through Fairchild
Financial – and vice versa. Our firm and LPL are not affiliated. Please refer to Item 10,
"Other Financial Industry Activities and Affiliations", for information regarding other
...

Item 7      Types of Clients
Fairchild provides advisory services to the following types of clients:
   • Individuals (other than high net worth individuals)
   • High net worth individuals

As previously disclosed in Item 5, our firm has established certain initial minimum
account requirements, 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.