FRA Wealth Management LLC

Item 5 – Fees and Compensation

    Annual	Fee	Schedule
    FRA’s	management	fee	is	a	tiered	scale	based	on	total	assets	under	management,	and	is	charged	on	all	positions
    including	cash,	except	when	an	individual	client	agreement	specifies	otherwise.	On	certain	401(k)s,	403(b)s,
    and	529	college	savings	plans,	the	Firm	either	charges	a	flat	fee	or	an	annual	fee.	A	one-time	review	and	asset
    allocation/investment	recommendation	is	available	for	a	fee	of	$250.	For	ongoing	management	of	the	529	plan,
    FRA	bills	one	of	the	clients’	other	accounts	such	as	an	IRA	or	individual	account	that	we	also	manage	and	can
    bill	fees	to.	Fees	can	be	negotiated.

    Fee	Schedule	A
             From	                            To	                          Fee
    $0	                         $499,999	                                2.00%
    $500,000	                   $999,999	                                1.75%
    $1,000,000	                 $1,999,999	                              1.50%
    $2,000,000	                 $4,999,999	                              1.25%
    $5,000,000+	                	                                        1.00%

    The	specific	manner	in	which	fees	are	charged	by	the	Firm	is	established	in	its	written	agreement	with	the
    client.	 FRA	 will	 generally	 bill	 portfolio	 management	 fees	 monthly,	 in	 arrears,	 based	 on	 the	 average	 daily
    balance1.	Accounts	initiated	or	terminated	during	a	calendar	month	or	quarter	will	be	charged	a	prorated	fee.
    Clients	are	charged	management	fees	in	tiered	fee	scale	based	on	the	above	fee	schedule.	Fees	are	deducted
    from	client	accounts	by	default.	However,	clients	have	the	option	to	choose	between	having	fees	deducted	from
    client’s	assets	or	being	billed	directly	for	fees	incurred.	Fees	for	clients	with	accounts	housed	with	designated
    custodian(s)	are	deducted	from	client	accounts.

    FRA,	in	its	sole	discretion,	may	discount	the	investment	advisory	fee	at	the	household	or	account	level	based
    upon	certain	criteria	(e.g.,	historical	relationship,	types	of	assets,	anticipated	future	additional	assets,	dollar
    amounts	of	assets	to	be	managed,	related	accounts,	account	composition,	etc.).	The	discount	will	be	expressed
    in	basis	points.

    In	calculating	the	monthly	fee,	the	fee	schedule	is	applied	to	the	average	daily	value	of	the	account.	This	is	a
    tiered	 fee	 schedule;	 the	 total	 billable	 assets	 are	 progressed	 through	 the	 tiered	 fee	 schedule	 creating	 a
    customized	fee.

    Average daily balance is the sum of the	daily	close	of	market	value	divided	by	the	number	of	days	in	the	period.

For	example,	in	an	account	where	the	average	daily	value	is	$1,100,00,	the	first	$499,999	will	be	multiplied	by
2%,	the	next	$499,999	will	be	multiplied	by	1.75%	and	the		remaining	$100,002	will	be	multiplied	by	1.5%.
These	values	are	totaled	and	divided	by	the	number	of	days	in	the	year	and	then	multiplied	by	the	number	of
days	in	the	billing	period.

Clients	are	responsible	for	the	payment	of	all	third-party	fees	(i.e.	custodian	fees,	brokerage	fees,	mutual	fund
fees,	transaction	fees,	turnkey	asset	management	programs,	etc.).	Those	fees	are	separate	and	distinct	from	the
fees	and	expenses	charged	by	FRA.

FRA	may	select	sub-advisers	or	third-party	investment	managers	to	assist	with	the	implementation	of	your
investment	strategy.	Fees	charged	by	such	sub-advisers	or	third-party	investment	managers	are	in	addition	to
FRA’s	fees	and	are	paid	directly	by	the	client.	FRA	does	not	receive	any	portion	of	those	fees.

If	we	engage	UX	to	manage	all	or	a	portion	of	your	assets,	UX	receives	an	annual	Program	fee	in	the	range	of
0%-	.49%	of	your	assets	under	management	in	the	Program,	including	cash	and	cash	equivalents.

Clients	will	receive	a	copy	of	this	firm	brochure	prior	to	or	at	the	time	of	entering	into	an	investment	advisory
agreement	with	the	Firm,	as	required	under	the	Investment	Advisers	Act	of	1940.	If	a	client	has	not	received
this	firm	brochure	at	least	forty-eight	(48)	hours	prior	to	entering	into	the	advisory	agreement,	the	client	may
terminate	 the	 advisory	 agreement	 without	 penalty	 within	 five	 (5)	 business	 days	 after	 entering	 into	 the
agreement.

FRA	will	manage	the	client’s	variable	annuity	with	discretion	and	allocate	and	re-balance	portfolio	holdings.
On	flat-fee	variable	annuities	only,	we	will	charge	management	fees	according	to	the	fee	schedule	listed	in	the
beginning	of	Item	5.	Fees	can	be	negotiated.

If	a	client	is	under	age	59	½,	and	the	insurance	company	has	a	private	letter	ruling	to	exclude	the	payment	of
investment	advisory	fees	from	classification	as	a	taxable	distribution	making	it	a	non-reportable	distribution
to	 the	 IRS,	 they	 may	 be	 deducted	 from	 the	 account.	 If	 not,	 FRA	 will	 deduct	 them	 from	 a	 specified	 after-tax
brokerage	account.

Financial	plans	are	provided	at	a	fixed	rate.	The	maximum	fixed	planning	fee	is	$10,000.		All	fees	are	agreed	to
in	 advance	 and	 in	 writing.	 The	 actual	 fee	 will	 depend	 on	 the	 complexity	 of	 the	 financial	 situation	 and	 the
estimated	hours	involved.	The	fee	is	payable	no	later	than	six	months	after	signing	the	contract,	which	includes
an	initial	deposit,	agreed	upon	in	writing,	not	to	exceed	$500.		Review	consultations	are	provided	to	existing
clientele	to	reevaluate	their	financial	situation,	goals	and	risk	tolerance.	Financial	review	plans	are	provided	at
a	 fixed	 rate.	 The	 maximum	 fee	 is	 $5,000.	 Fees	 for	 review	 planning	 services	 are	 agreed	 upon	 in	 advance,	 in
writing	and	are	dependent	upon	the	complexity	of	the	financial	situation	and	the	estimated	number	of	hours
involved,	including	preparation	and	research.	The	fee	is	payable	upon	signing	the	contract.	As	this	service	is
provided	for	existing	clientele,	a	refund	for	this	service	is	not	provided.	No	client	is	obligated	in	any	way	to
...

Item 7 – Types of Clients

The	 Firm	 provides	 portfolio	 management	 services	 to	 individuals	 (including	 high	 net	 worth	 individuals),
corporations, and trusts.