Focused Alpha LLC

Item 5.    Fees and Compensation

A. Methods of Compensation and Fee Schedule

 Portfolio Management & Sub-Adviser Fees
FA offers its portfolio management services exclusively through a wrap fee program, where
brokerage commissions and transaction costs are included in the asset-based fee charged to the
client. Please refer to Appendix 1 of Part 2A: Focused Alpha, LLC Wrap Fee Program Brochure.
Also see Item 5.E. of this Brochure for important disclosure regarding custodian investment
programs.

 Financial Planning Fees
FA’s financial planning fees range from $500 to $25,000 on a fixed fee basis, and will depend
upon the level and scope of the services required. Fixed fees are computed based upon a good
faith estimate of hours required to perform services. For fixed fee arrangements, FA will provide
the prospective client with an estimate of the fixed charges prior to finalizing the financial
planning agreement. FA also offers a fixed rate fee and a reduced asset-based fee, billed
quarterly in advance.
FA also provides hourly financial planning at a rate of $350 per hour. The client will be billed
directly for such services. Invoices will be mailed out on a periodic basis reflecting completed
work performed.
Typically, one-half of FA’s fees are due upon signing of the initial financial planning
engagement, with the balance due upon presentment of the firm’s recommendations.

 401(k) Plan Services Fees
Each engagement for 401(k) and retirement plan services is individually negotiated in advance
and tailored to accommodate the needs of the individual plan sponsor, as memorialized in the
agreement, and the fees vary based on the scope of the services to be rendered and assets to
be managed.

B. Client Payment of Fees
FA generally requires fees to be prepaid on a quarterly basis. FA will deduct advisory fees
directly from the client’s account provided that (i) the client provides written authorization to the
qualified custodian, and (ii) the qualified custodian sends the client a statement, at least
quarterly, indicating all amounts disbursed from the account. The client is responsible for
verifying the accuracy of the fee calculation, as the client’s custodian will not verify the
calculation. Clients may withdraw this authorization for direct billing of these fees at any time by
notifying us or their custodian in writing.
A client investment advisory agreement may be canceled at any time by the client, or by FA with
30 days’ prior written notice to the client. Upon termination, any unearned, prepaid fees will be
promptly refunded.

                          Part 2A of Form ADV: Focused Alpha, LLC Brochure

C. Additional Client Fees Charged
All fees paid for investment advisory services are separate and distinct from the fees and
expenses charged by exchange-traded funds, mutual funds, sub-advisers, private placement,
pooled investment vehicles, and trade-away fees imposed by broker-dealers and custodians
retained by clients, if any. Such fees and expenses are described in each exchange-traded fund
and mutual fund’s prospectus, each sub-adviser’s Form ADV and Brochure and Brochure
Supplement or similar disclosure statement, each private placement or pooled investment
vehicle’s confidential offering memoranda, and by any broker-dealer or custodian retained by
the client. Clients are advised to read these materials carefully before investing. If a mutual fund
also imposes sales charges, a client may pay an initial or deferred sales charge as further
described in the mutual fund’s prospectus. A client using FA may be precluded from using
certain mutual funds or separate account managers because they may not be offered by the
client's custodian.
Please refer to the Brokerage Practices section (Item 12) for additional information regarding the
firm’s brokerage practices.

D. External Compensation for the Sale of Securities to Clients
FA advisory professionals are compensated primarily through a percentage of revenue
generated from advisory fees. FA’s advisory professionals may receive commission-based
compensation for the sale of insurance products. Please see Item 10.C. for detailed information
and conflicts of interest.

E. Important Disclosure – Custodian Investment Programs
Please be advised that the firm utilizes certain custodians/broker-dealers. Under these
arrangements we can access certain investment programs offered through such custodian(s)
that offer certain compensation and fee structures that create conflicts of interest of which
clients need to be aware. Please note the following:
Limitation on Mutual Fund Universe for Custodian Investment Programs: There are certain
programs in which we participate where a client’s investment options may be limited in certain
of these programs to those mutual funds and/or mutual fund share classes that pay 12b-1 fees
and other revenue sharing fee payments, and the client should be aware that the firm is not
selecting from among all mutual funds available in the marketplace when recommending
mutual funds to the client.
Conflict Between Revenue Share Class (12b-1) and Non-Revenue Share Class Mutual Funds:
Revenue share class/12b-1 fees are deducted from the net asset value of the mutual fund and
generally, all things being equal, cause the fund to earn lower rates of return than those mutual
funds that do not pay revenue sharing fees. The client is under no obligation to utilize such
programs or mutual funds. Although many factors will influence the type of fund to be used, the
client should discuss with their investment adviser representative whether a share class from a
comparable mutual fund with a more favorable return to investors is available that does not
include the payment of any 12b-1 or revenue sharing fees given the client’s individual needs
and priorities and anticipated transaction costs. In addition, the receipt of such fees can create

                          Part 2A of Form ADV: Focused Alpha, LLC Brochure
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Item 7.    Types of Clients

FA offers its investment services to various types of clients including high-net-worth individuals,
trusts, corporations, partnerships, retirement plans, tax exempt, public hospitals, municipalities,
and other legal entities.
FA generally requires a minimum account size of $250,000. FA, in its sole discretion, may waive
the required minimum.

                          Part 2A of Form ADV: Focused Alpha, LLC Brochure