Formulate Financial LLC

Item 5: Fees and Compensation

      A.      Fees Charged

      All investment management clients will be required to execute an Investment Advisory Agreement
      that will describe the type of management services to be provided and the fees, among other items.
      Clients are advised that they may pay fees that are higher or lower than fees they may pay another
      advisor for the same services and may in fact pay lower fees for comparable services from other
      sources. Clients are under no obligation at any time to engage or to continue to engage Formulate
      for investment services.

      Asset Management Services

      Formulate asset management fees generally range from 0.00% to 2.00% per annum of the net market
      value of a client’s account managed by Formulate. Clients may pay a different fee in each account
      dependent on the assets within that account. Fees are negotiable and may be higher or lower than
      this range, based on the nature of the account, and the origin of the client. Factors affecting fee
      percentages include the size of the account, complexity of asset structures, the non-management
      services provided to the client, and any other unique factors that may exist. All clients, but especially
      those with smaller accounts, should be advised they may receive similar services from other
      professionals for higher or lower overall costs.

      On a select basis and in the sole discretion of Formulate, asset management services can also be
      provided on a fixed fee basis ranging from $20,000 to $100,000 per year. Fees are negotiable and
      may be higher or lower than this range, based on the nature of the account, and the origin of the
      client.

      Retirement Plan Services

      Retirement Plan Services are charged either on a fixed fee basis or a percentage of plan assets basis.
      Generally, retirement plan fees vary from 0.00% to 2.00% per annum of the market value of a client’s
      assets managed by Formulate. Fees are negotiable, and may be higher or lower than this range,
      based on the nature of the account. Factors affecting fee percentages include the size of the account,
      complexity of asset structures, and other factors.

      B.      Fee Payment

Asset Management Services

For clients whose assets are managed by the firm, investment management fees will be debited
directly from each client’s account. The advisory fee is paid quarterly, in advance, and the value used
for the fee calculation is the net value as of the last market day of the previous quarter, including any
cash in the client’s account, and accounting for any inflows and outflows in the accounts during the
quarter. For example, if your annual fee is 1.00%, each quarter we will multiply the value of your
account by 1.00%, then divide by the number of days in that calendar year and multiply that number
by days in the quarter to calculate our fee. To the extent there is cash in your account, it will be
included in the value for the purpose of calculating fees only if the cash is part of an investment
strategy.

Fees are also prorated for inflows and outflows. The prorated fee is calculated using the number of
days including the date of deposit. The annual fee is then multiplied by the value of the account at
the end of the billing cycle, divided by the number of days in the calendar year and then multiplied
by the days the deposit was in the account and managed by Formulate. Withdrawals are calculated
in the same manner except it is multiplied by number of days in the quarter the money is not in the
account and not managed by Formulate. This will result in money due back to the client. The
prorated fee calculations are done in addition to the normal asset management fee at the same time.
Meaning each account will have a billing calculation for the asset management fee and the prorated
management fee.

Once the calculation is made, we will instruct your account custodian to deduct the fee from your
account and remit it to Formulate.

For fixed fee investment management clients, the fee will be charged quarterly in advance by dividing
the annual fee amount by four.

Retirement Plan Services

Retirement plan sponsors pay fees directly or have the fees deducted from plan assets as directed by
the agreement between the plan sponsors, the recordkeeper and Formulate. The fees are calculated
by the recordkeeper and deducted from the plan by the recordkeeper and paid to Formulate
accordingly.

C.      Other Fees

There are a number of other fees that can be associated with holding and investing in securities.
Expenses of a mutual fund or ETF will not be included in management fees, as they are deducted
from the value of the shares by the manager. When selecting mutual funds that have multiple share
classes for recommendation to clients, Formulate will take into account the internal fees and
expenses associated with each share class, and it is Formulate’s policy to choose the lowest-cost
share class available, absent circumstances that dictate otherwise. For complete discussion of
expenses related to each mutual fund or ETF, you should read a copy of the prospectus issued by
that fund. Formulate can provide or direct you to a copy of the prospectus for any fund that we
recommend to you.

Please make sure to read Item 12 of this informational brochure, where we discuss broker-dealer

       and custodial issues.

       D.      Pro-rata Fees

       If a client becomes a client during a quarter, they will pay a management fee for the number of days
       left in that quarter. This prorated fee will be deducted at the time of the next quarterly billing cycle
       in conjunction with the quarterly management fee charged in advance.

       If clients terminate the relationship during a quarter, they will be entitled to a refund of any
       management fees for the remainder of the quarter they may have prepaid. Once the notice of
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Item 7: Types of Clients

       Clients advised include individuals, families, trusts, businesses and retirement plans. Formulate does
       not have a minimum account value to become a client.