Fanclub Sports Management LLC

Item 5: Fees and Compensation

A. Fee Schedule

Performance-Based Fees for Portfolio Management

Accredited clients will pay an annual fee of 2.00% of assets under management along with
a 20.00% performance fee based on capital appreciation. If the client's portfolio rises in
value, the client will pay 20.00% on that increase in value, but if the portfolio drops in
value, the client will not incur a new performance fee until the portfolio reaches the last
highest value, adjusted for withdrawals and deposits, which is generally known as a “high
water mark. ”Qualified clients will pay an annual fee of 2.00% of assets under
management along with a 20.00% performance fee based on capital appreciation. If the
client's portfolio rises in value, the client will pay 20.00% on that increase in value, but if
the portfolio drops in value, the client will not incur a new performance fee until the
portfolio reaches the last highest value, adjusted for withdrawals and deposits, which is
generally known as a “high water mark.” The high-water mark will be the highest value
of the client’s account on the last day of any previous year, after accounting for the client’s
deposits or withdrawals for each billing period.

These fees are generally negotiable and the final fee schedule will be memorialized in the
client’s advisory agreement. This service may be canceled with 30 days’ notice. Clients
must pay the prorated performance-based fees for the billing period in which they
terminate the Investment Advisory Contract up to and including the day of termination.

B. Payment of Fees

Payment of Performance-Based Portfolio Management Fees

Performance-based portfolio management fees are withdrawn directly from the client's
accounts with client's written authorization on an annual basis, or may be invoiced and
billed directly to the client on an annual basis. Clients may select the method in which
they are billed. Fees are paid in arrears.

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 FanClub Sports. Please see Item 12 of this
brochure regarding broker-dealer/custodian.

       D. Prepayment of Fees

       FanClub Sports collects its fees in arrears. It does not collect fees in advance.

       E. Outside Compensation For the Sale of Securities to Clients

       Neither FanClub Sports 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

FanClub Sports generally provides advisory services to the following types of clients:

       ❖       Individuals
       ❖       High-Net-Worth Individuals
       ❖       Business Development
       ❖       Pension and Profit-Sharing Plans
       ❖       Corporations or Business Entities
       ❖       Other Investment Advisers

Clients must be a “Qualified Client” to receive FanClub Sports services. In general, a “Qualified
Client” is:
       (1) a natural person or company who at the time of entering into such agreement has at
       least $1,100,000 under the management of the investment adviser;
       (2) a natural person or company who the adviser reasonably believes at the time of
       entering into the contract: (A) has a net worth of jointly with his or her spouse of more
       than $2,200,000 excluding the value of the client’s primary residence; or (B) is a qualified
       purchaser as defined in the Investment Company Act of 1940, §2(a)(51)(A) (15 U.S.C. 80a-
       2(51)(A)); or

   (3) a natural person who at the time of entering into the contract is: (A) An executive
   officer, director, trustee, general partner, or person serving in similar capacity of the
   investment adviser; or (B) An employee of the investment adviser (other than an
   employee performing solely clerical, secretarial, or administrative functions with regard
   to the investment adviser), who, in connection with his or her regular functions or duties,
   participates in the investment activities of such investment adviser, provided that such
   employee has been performing such functions and duties for or on behalf of the
   investment adviser, or substantially similar function or duties for or on behalf of another
   company for at least 12 months.