Fairscale Capital LLC

Item 5 – Fees and Compensation

Financial Planning Fees
FC’s Financial Planning fee may be calculated and charged in one of two ways:

  i.    On an hourly basis, ranging from $200 to $300 per hour, depending on the nature of the services
        being provided and the complexity of each client's circumstances. An estimate of the total hours
        involved will be provided; or
  ii.   On a fixed fee basis, typically ranging from $600 to $10,000 depending on the specific arrangement
        reached with the client; however, the fees may go above this range depending on the complexity of

       the engagement.

The fees are billed at the time that the financial plan is delivered to the client. An initial deposit may be
required in certain circumstances.

If a Financial Planning agreement is terminated prior to the delivery of the financial plan, the client will be
billed for the actual number of hours devoted to preparation of the plan, at the hourly rate specified in the
client agreement.

FC, in its sole discretion may reduce or waive all or a portion of the Financial Planning fee if the Financial
Planning client chooses to engage FC for Portfolio Management Services.

Portfolio Management Services Fees
Our annual fees for Portfolio Management Services are based upon a percentage of assets under
management and generally range from 0.40% to 1.50%.

FC generally requires a minimum account size of $300,000 for its Portfolio Management Services. This
minimum threshold is negotiable, at FC’s discretion. FC may aggregate certain related accounts in
determining whether the threshold has been met.

Our fees are billed monthly, in arrears, at the end of each month based upon the value (market value or fair
market value in the absence of market value), of the client's account at the end of the previous billing period.
Fees will be debited from the account in accordance with the client authorization in the Client Agreement. If a
Portfolio Management Services account commences or terminates on a date other than a month-end, the
fee will be prorated accordingly.

General Consulting Services: Consulting fees are negotiated based on the scope of work, the length of the
engagement and the type of services involved.

Other Costs Involved: In addition to the fees paid to the Advisor, clients with Portfolio Management Services
accounts will incur other fees and expenses associated with their accounts. Such fees and expenses include:

   •   Brokerage, transaction and transaction fees and expenses associated with trading securities in the
       account;
   •   Administrative and custodial fees charged by the client’s custodian. The fees are disclosed in the
       client’s custody agreement for each account.
   •   Fees and expenses incurred by the mutual funds and ETFs in the client’s account, which affect the
       investment return of the fund. These include management, trading, and administrative fees and
       expenses. These fees and expenses are disclosed in the fund’s prospectus.

Additional Fee Information: FC retains the right, in its sole discretion, to negotiate alternative fees and fee
rates on a client-by client basis. Factors which may be considered include the complexity of the client’s
finances, assets to be placed under management, anticipated future additions to the account, related
accounts; strategies, the number and types of accounts, reporting requirements, and other factors.

FC may offer discounted fees to family members and friends of associated persons of the Advisor.

Fee rates are negotiable, in the Advisor’s sole discretion.

Fees may vary significantly from client to client. The factors in determining the fee may include complexity of
portfolio, financial profile, time commitment, client service, and other factors.

Termination of Services
Either party may terminate the agreement at any time by communicating the intent to terminate in writing.
The Advisor will not be responsible for investment allocation, advice or transactional services (except for
limited closing transactions) upon receipt of a termination notice. It will also be necessary that we inform the
custodian of record that the relationship between parties has been terminated.

Termination of the Advisory Relationship: For Portfolio Management Services, a client agreement may be
canceled at any time, by either party, for any reason upon receipt of 30 days written notice. As disclosed
above, fees are charged in arrears for services provided.
As noted above, if a Financial Planning agreement is terminated prior to the delivery of the financial plan, the
client will be billed for the actual number of hours devoted to preparation of the plan, at the hourly rate
specified in the client agreement.

General Information
Written Agreement: Each client must enter into a written agreement with the Advisor which will state all of the
relevant terms, including the services to be provided and the fees to be charged.

Advisory Fees in General: Clients should note that similar advisory services may (or may not) be available
from other registered (or unregistered) investment advisers for similar or lower fees.

No Other Compensation: The Financial Planning, Portfolio Management Services and General Consulting
Services fees paid by clients are the Advisor’s sole source of compensation.

Prepayment Limitation: Under no circumstances will the Advisor earn fees in excess of $1,200 more than
six months in advance of services rendered.

Item 7 – Types of Clients

The Advisor’s services are available to individuals (including high net worth individuals) banking or thrift
institutions, non-profit organizations and business entities.

Please see Item 5 above for information about the minimum account for a Portfolio Management Services
account.