Fairlight Advisors LLC

Item 5: Fees and Compensation
Please note, unless a Client has received the firm’s Disclosure Brochure at least 48 hours prior to signing the
investment advisory contract, the investment advisory contract may be terminated by the Client within five (5)
business days of signing the contract without incurring any advisory fees without penalty. How we are paid
depends on the type of advisory service we are performing. Please review the fee and compensation information
below.
Investment Management Services (Fairlight Manages)
Fairlight’s typical fee structure under which Fairlight renders its Services ranges from 0.35% to 0.85%., which is
calculated by multiplying the annual fee with the Client’s average daily account value over the course of the
preceding calendar quarter. The annual fees are negotiable, pro-rated and paid in arrears on a quarterly basis.

Fairlight uses a blended fee methodology which means Clients are billed according to each breakpoint level such
that the fee blends across the various breakpoints.

                       Account Value                                  Annual Advisory Fee
                      $0 - $2,000,000                                        0.85%
                  $2,000,001 - $5,000,000                                    0.70%
                 $5,000,001 - $10,000,000                                    0.55%
                $10,000,000 - $25,000,000                                    0.40%
                  $25,000,001 and above                                0.35% (negotiable)

For example, the total annual advisory fee for an account valued at $5,200,000 would be calculated with three
asset breakpoint rates as follows.
                 Assets                       Breakpoint Rate               Breakpoint Fee
                 $2,000,000 @                 0.85%                              $17,000
                 $3,000,000 @                 0.70%                              $21,000
                 $200,000 @                   0.55%                              $1,100
                 Total Assets: $5,200,000 Blended Fee: 0.75% Total Annual Fee: $39,100

The quarterly fee is determined by the following calculation: $39,100 ÷ 4 = $9,775. No increase in the annual fee
shall be effective without agreement from the Client by signing a new agreement or amendment to their current
advisory agreement.

We calculate period-end account values after all dividends settle in the account, therefore, the account value used
to calculate advisory fees may differ from that of the custodial account statement. Our billing invoice will indicate
the total account value used to calculate the advisory fee.
Advisory fees are directly debited from Client accounts, or the Client may choose to pay by check. An account
may be terminated with written notice at least 30 calendar days in advance. Since fees are paid in arrears, no
refund will be needed upon termination of the account. For partial quarters, the fee will be prorated based upon
the number of days the account was open during the billing period.
For purposes of determining AUM, Fairlight will aggregate Accounts under the same “household.” For purposes
of the Firm’s fee billing procedure, this term “household” includes any person(s) who reside at the same mailing
residence as the client, including minor children and children who have reached majority and are temporarily
residing outside of the same mailing residence as the client while attending school, military service, or similar
education or training programs.
Institutional Pension Services
                                Account Value                        Fairlight’s Fee
                                $0 - $3,000,000                          0.50%
                           $3,000,001 - $5,000,000                       0.40%
                           $5,000,001 - $10,000,000                      0.30%
                            $10,000,000 and Above                        0.20%

Fairlight will be compensated for pension consulting services according to the value of plan assets. The fee is
calculated by assessing the percentage rates shown in the above chart, based on the value of the plan assets as of
market close on the last day of the quarter. We use a blended fee methodology which means our clients are billed
according to each breakpoint level such that the fee blends across the various breakpoints. Fees are negotiable.

For example, the total annual advisory fee for an account valued at $6,200,000 would be calculated with three
asset breakpoint rates as follows.
                                                                               Breakpoint
                          Assets               Breakpoint Rate
                                                                                  Fee
                $3,000,000 @                 0.50%                                          $15,000
                $2,000,000 @                 0.40%                                           $8,000
                $1,200,000 @                 0.30%                                           $3,600
                Total Assets: $6,200,000 Blended Fee: 0.43%            Total Annual Fee: $26,600

For example, a plan valued at $6,200,000 would pay a blended fee of 0.43% with an annual fee of $26,600 or
$6,650 per quarter. The quarterly fee is determined by the following calculation $26,600/4 = $6,650. This does
not include fees to other parties, such as Record Keepers, Custodians, or Third-Party-Administrators. Fees for this
service are either paid directly by the plan sponsor or deducted directly from the plan assets by the Custodian on a
quarterly basis, and Fairlight’s fee is remitted to Fairlight.
To accommodate start-up pension plans, Fairlight charges a minimum flat fee of $500 per quarter until assets
reach a total balance of $400,000 which, at that point, the fees revert to the above fee schedule.

Other Types of Fees and Expenses
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Item 7: Types of Clients
We provide financial planning and portfolio management services to individuals, high net-worth individuals,
pension and profit-sharing plans, and charitable organizations. We do not have a minimum account size
requirement.