Flagstar Advisors Inc

Item 5 Fees and Compensation
Portfolio Management Services
Our annual fee is payable quarterly in advance based on the market value of the assets under
management on the last day of the preceding calendar quarter. Fees will be assessed pro rata in the
event the client agreement is executed at any time other than the first day of a calendar quarter, which
means that the advisory fee is payable in proportion to the number of days in the quarter for which you
are a client.

Managed Account Program
Client fees will include an advisory fee, a sponsor fee and if your account is managed by a TPA, an
additional manager fee for such TPA. Below we have provided descriptions and our current fee
schedules.

Advisory Fee
An advisory fee is a fee paid for professional advisory services. Please note that advisory fees are
based on a percentage of assets under management and are negotiable. The table below reflects the
maximum fees Flagstar Securities permits which are based on threshold billing (i.e., when the account
balance meets the next threshold level, the fee reflected is charged on the entire account balance).
The current schedule of advisory fees has been provided below:

          Market Value               Annual Fee
Up to $999,999                          1.50%
$1,000,000 - $4,999,999                 1.00%
$5,000,000 - $9,999,999                 0.75%
$10,000,000 - $19,999,999               0.50%
Above $20,000,000                       0.40%

Sponsor Fee
These fees are associated with services offered through our advisory program. They include
implementation, platform and administrative fees. Our current fee schedule has been provided below.

          Market Value                Annual Fee
Up to $499,999                           0.12%
$500,000 - $1,999,999                    0.10%
$2,000,000 - $4,999,999                  0.09%
$5,000,000 - $9,999,999                  0.08%
$10,000,000 - $19,999,999                0.05%
Above $20,000,000                        0.03%

TPA Fee
You will pay an additional fee for any TPA that manages your account. These fees range from 0.25%
to 1.25% and may or may not be negotiable. You should review the recommended TPA's disclosure
brochure and take into consideration the TPA's fees along with our fees to determine the total amount
of fees associated with this program.

Retirement Plan Consulting Services
Our fees for retirement plan consulting services will be negotiated with the plan sponsor or named
fiduciary on a case-by-case basis.

The agreement for these services is intended to remain in force indefinitely until terminated. Otherwise,
the parties agree that the agreement may be terminated by either party with sixty (60) days written
notice to the other parties. You will incur a pro rata charge for services rendered prior to the
termination of the agreement, which means you will incur advisory fees only in proportion to the
number of days in the quarter for which you are a client. If you have pre-paid advisory fees that we
have not yet earned, you will receive a prorated refund of those fees.

We will deduct our fees directly from your account through the qualified custodian holding your funds
and securities. In certain instances, arrangements can be made to send you an invoice for the
payment of fees. We will deduct our fees only when you have given the Firm written authorization
permitting the fees to be debited directly from your account. Further, the qualified custodian will deliver
an account statement to you at least quarterly. These account statements will show all disbursements.
You should review all statements for accuracy.

You may terminate the advisory agreement upon 30 days written notice to the Firm. You will incur a
pro rata charge for services rendered prior to the termination of the agreement, which means you will
incur advisory fees only in proportion to the number of days in the quarter for which you are a client. If
you have pre-paid advisory fees that we have not yet earned, you will receive a prorated refund of
those fees.

You will also be required to enter into investment advisory agreements with the TPAs managing your
account. You may terminate your advisory relationship with a TPA according to the terms of your
agreement with the TPA.

You may make additions to and withdrawals from the account at any time, subject to our right to
terminate an account. If assets of $10,000 or more are deposited into an account after the inception of
a quarter, a one-time fee payable with respect to such assets will be prorated based on the number of

days remaining in the quarter. You may withdraw account assets by providing us with notice, subject to
the usual and customary securities settlement procedures. For partial withdrawals during a quarterly
billing period of $10,000 or more, we will credit our unearned fee towards the next quarter's fee.
However, we design portfolios as long-term investments and asset withdrawals may impair the
achievement of your investment objectives.

Additions to your account may be in cash or securities, provided that we reserve the right to liquidate
any transferred securities, or decline to accept particular securities into a client's account. We may
consult with you about the options and ramifications of transferring securities. However, when
transferred securities are liquidated they are subject to transaction fees, fees assessed at the mutual
fund level (e.g., contingent deferred sales charge) and/or tax ramifications. Fees will be charged on
cash positions held within client accounts.

You must promptly notify us if there are ever any changes in your financial situation or investment
objectives or if you wish to impose any reasonable restrictions upon our management services.

Additional Fees and Expenses
As part of our investment advisory services to you, we may invest, or recommend that you invest, in
mutual funds, ETFs and alternative investments. The fees that you pay to the Firm for investment
...

Item 7 Types of Clients
We offer investment advisory services to individuals, high net-worth individuals, pension and profit-
sharing plans, trusts, estates, charitable organizations, corporations, insurance companies, and other
business entities.

We do not have a minimum account size or minimum annual fee. Certain TPAs may impose minimum
account sizes, more restrictive account requirements and varying billing practices.