Franco Financial Advisors Inc

Item 5 – Fees and Compensation

The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client shall sign one or more agreements that detail the responsibilities of FFA and the Client.

A. Fees for Advisory Services
Investment Management Services
Investment advisory fees are paid quarterly, at the end of each calendar quarter, pursuant to the terms of the
investment advisory agreement. Investment advisory fees are based on the average market value of assets under
management during the period.

Investment advisory fees range from 1.25% to 0.25% based on the following schedule:

                      Assets Under Management                   Annual Rate
                      Up to $1,000,000                              1.25%
                      Next $1,000,001 to $2,000,000                 1.00%
                      Next $2,000,001 to $3,000,000                 0.75%
                      Next $3,000,001 to $5,000,000                 0.50%
                      Next $5,000,001 to $11,000,000                0.25%
                      Over $11,000,000                        Flat fee of 0.45%

The investment advisory fee in the first quarter of service is prorated to the inception date of the account[s] to the
end of the first quarter. Fees may be negotiable at the sole discretion of the Advisor. The Client’s fees will take into
consideration the aggregate assets under management with the Advisor. All securities held in accounts managed
by FFA will be independently valued by the Custodian. The Advisor will conduct periodic reviews of the Custodian’s
valuation to ensure accurate billing.

The Advisor’s fee is exclusive of, and in addition to any applicable securities transaction and custody fees, and
other related costs and expenses described in Item 5.C below, which may be incurred by the Client. However, the
Advisor shall not receive any portion of these commissions, fees, and costs.

Financial Consulting Services
FFA offers financial consulting services on an hourly basis at a rate ranging from $495 to $125 per hour, depending
on the services to be provided and the individual conducting the work. Senior consulting is provided at an hourly
rate of $495 per hour; junior consulting is provided at an hourly rate of $300 per hour; and administrative services
are provided at $125 per hour. Fees may be negotiable depending on the nature and complexity of each Client’s
circumstances. An estimate for total hours and overall costs will be provided to the Client prior to engaging for these
services.
                                              Franco Financial Advisors, Inc.
                                     41 Madison Avenue, 31st Floor, New York, NY 10010
                                        Phone: (212) 877-1576 * Fax: (212) 644-0930
                                                     www.francofg.com

B. Fee Billing
Investment Management Services
Investment advisory fees will be calculated by the Advisor or its delegate and deducted from the Client’s account[s]
at the Custodian. The Advisor or its delegate shall send an invoice to the Custodian indicating the amount of the
fees to be deducted from the Client’s account[s] at the respective quarter-end date. The amount due is calculated
by applying the quarterly rate (annual rate divided by 4) to the average assets under management with FFA during
the applicable quarter. Clients will be provided with a statement, at least quarterly, from the Custodian reflecting
deduction of the investment advisory fee. It is the responsibility of the Client to verify the accuracy of these fees as
listed on the custodian’s brokerage statement as the Custodian does not assume this responsibility. Clients provide
written authorization permitting advisory fees to be deducted by FFA directly from their accounts held by the
Custodian as part of the investment advisory agreement and separate account forms provided by the Custodian.

Financial Consulting Services
Financial consulting fee are invoiced by the Advisor as earned and are due upon receipt.

C. Other Fees and Expenses
Clients may incur certain fees or charges imposed by third parties, other than FFA, in connection with investments
made on behalf of the Client’s account[s]. The Client is responsible for all custody and securities execution fees
charged by the Custodian. The Advisor's recommended Custodian does not charge securities transaction fees for
ETF and equity trades in a Client's account, provided that the account meets the terms and conditions of the
Custodian's brokerage requirements. However, the Custodian typically charges for mutual funds and other types of
investments. The investment advisory fee charged by FFA is separate and distinct from these custody and
execution fees.

In addition, all fees paid to FFA for investment advisory services are separate and distinct from the expenses
charged by mutual funds and ETFs to their shareholders, if applicable. These fees and expenses are described in
each fund’s prospectus. These fees and expenses will generally be used to pay management fees for the funds,
other fund expenses, account administration (e.g., custody, brokerage and account reporting), and a possible
distribution fee. A Client may be able to invest in these products directly, without the services of FFA, but would not
receive the services provided by FFA which are designed, among other things, to assist the Client in determining
which products or services are most appropriate to each Client’s financial condition and objectives. Accordingly, the
Client should review both the fees charged by the fund[s] and the fees charged by FFA to fully understand the total
fees to be paid. Please see Item12 – Brokerage Practices.

D. Advance Payment of Fees and Termination
Investment Management Services
FFA is compensated for its investment management services at the end of the quarter, after investment
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Item 7 – Types of Clients

FFA provides investment advisory services to individuals, high net worth individuals, trusts, estates, and
businesses. The FFA generally requires a minimum relationship size of $1,000,000, which may be reduced at the
sole discretion of the Advisor.