Financial Designs Wealth Management LLC

Item 5: Fees and Compensation

Asset-Based Fee

The annual advisory fee is generally based upon a percentage of the market value of assets
placed under our management and will not exceed 1.25%.

Our current fee schedule for discretionary and non-discretionary portfolios is:

  Up to $10,000,000                           1.25%
  $10,000,0001 to $25,000,000                 1.00%
  $25,000,001 and up                          0.75%

Fees are charged quarterly in advance and are calculated on an account's asset value as of the last
business day of the prior quarter. The market value is based on the custodian or other independent
third party’s valuation and includes cash balances. The fee will be prorated for cash and securities
deposited during the billing period.

Clients should also be aware that other clients may have received negotiated discounts, and the
same or similar investment services may be available from other investment advisers for a lower
or higher fee. The fees paid to FD Wealth may be reduced for employee and family member
accounts.

The Investment Management Agreement authorizes us to deduct advisory fees from the client’s
custodial account. The fees will be reflected in the client’s custodian account statements. We
request that clients carefully review their custodian statements and inform us of any
discrepancies.

Typically, third-party management fees are included in FD Wealth’s fees. FD Wealth does not
receive any portion of the third-party manager’s fee. FD Wealth fees are exclusive and in addition
to transaction fees, and other costs or expenses that shall be incurred directly by the client. Clients
will generally incur certain charges imposed by custodians, brokers, and other third parties, such
as fees charged by fund managers, custodial fees, set-up fees, termination fees, deferred sales
charges, odd-lot differentials, transfer taxes, wire transfer and electronic funds fees, and other
fees and taxes on brokerage account and securities transactions. An asset-based fee may cost
more than a transaction-based fee, but clients may prefer it if they want ongoing advice or for
someone to make investment decisions on their behalf. Although FD Wealth believes the fees
offered are competitive with other investment advisers, we make no guarantee that the cost of a
particular program will be lower than that which may be available elsewhere.

When appropriate, FD Wealth may recommend using margin and/or option transactions. Because
these investment strategies involve a certain degree of additional risk, they are only recommended
when consistent with the client’s objectives and risk tolerance. The use of margin also results in
interest charges, in addition to all other fees and expenses associated with account management.
Although account statements for margined accounts may reflect a negative amount, our advisory
fee is based on the account’s absolute market value. This poses a conflict of interest because FD
Wealth benefits by receiving a higher fee based on the account’s absolute market value.

In addition to FD Wealth’s advisory fee, each mutual fund or ETF in which a client's assets may
be invested also charges its own management fees and other expenses. The specific fees and
expenses are described in the respective fund’s prospectus. Depending on the fund, a client may
be able to invest directly in the shares of a mutual fund, with or without incurring any sales charges
or advisory fees. Mutual fund companies generally offer multiple share classes of the same fund.
Share classes are described in the mutual fund's prospectus. Each share class charges different
fees and expenses. Depending on the share class selected, fees and internal expense charges may
be higher or lower. Certain funds do not charge a transaction fee but have higher internal
expenses. Selecting funds with higher fees and expenses may adversely affect an account’s long-
term performance. FD Wealth’s policy is to generally recommend that clients invest in the
lowest-cost share class available, based on the client’s situation. FD Wealth usually recommends
advisor- or institutional-share classes, which typically have the lowest expense ratios and are
more beneficial than other share classes. Advisor or institutional share classes are generally
available to investors in qualified fee-based advisor programs or accounts that meet specific
minimum investment requirements.

When deemed appropriate, we may recommend that a client who transfers in mutual fund
holdings liquidate their holdings, which could result in tax consequences or require payment of
contingent deferred sales charges or other redemption fees. Clients are encouraged to review the
fees charged by the funds and our advisory fees to fully understand the total fees payable. Please
refer to the mutual fund's prospectus for additional information on the fund’s fees and expenses.

Fees for 401(k) Plans

Our 401(k) plan fees are as follows:

First $1,000,000               0.75%
$1,000,001 to $2,500,000       0.60%
$2,500,001 to $5,000,000       0.50%
$5,000,001 to $10,000,000      0.40%
$10,000,001 and up             0.30%

For 401(k) plans, billing is handled by the recordkeeper or administrator. Billing is handled
differently by each record keeper/administrator, as agreed to by the plan sponsor or fiduciary.
Some recordkeepers/administrators bill monthly, while others bill quarterly and may or may not
prorate fees. FD Wealth will work with each plan recordkeeper/administrator to accommodate
their processes and ensure that fees are adjusted when necessary. FD Wealth’s fee will be
outlined in the Advisory Agreement for the plan.

Fees for Financial Planning and Estate Planning Coordination

Our minimum hourly fee is $500. Clients are typically charged a fixed fee for financial planning
and Estate Planning Coordination services. These services are invoiced separately. The cost
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Item 7: Types of Clients

FD Wealth offers advisory services to individuals, high-net-worth individuals, trusts, estates,
corporations, limited liability companies, and retirement plan sponsors.

We typically require a minimum account size of $1,000,000. At our sole discretion, we may
waive or lower the required account minimum for employee-related accounts, or on a case-by-
case basis. Additionally, the third-party manager(s) we recommend may have minimum account
requirements. FD Wealth’s advisers will discuss the specific requirements with clients.