Gradient Capital Advisors LLC

Item 5: Fees & Compensation
    Compensation for Our Advisory Services

    Comprehensive Portfolio Management:

    Our firm does not assess a fee for this advisory service. It is an accommodation to family and friends’
    managed accounts. The managed accounts will be listed on Schedule A of the client agreement, and
    the client’s independent custodian will send statements at least quarterly showing the market values
    for each security included in the Assets and all account disbursements.

    Financial Planning & Consulting:

    We charge on an hourly or flat fee basis for financial planning and consulting services. The total
    estimated fee, as well as the ultimate fee that we charge you, is based on the scope and complexity of
    our engagement with you. Our hourly fees range from $100 to $350 and our flat fees generally range
    from $500 to $10,000.

    We do not require a retainer of the total financial planning and consulting fee. The financial planning
    and consulting fee will be due upon completion of the project or as otherwise indicated in the
    Financial Planning and Consulting Agreement.

    Retirement Plan Consulting:

    Our Retirement Plan Consulting services are billed on a fee based on the percentage of Plan assets
    under management. The total estimated fee, as well as the ultimate fee charged, is based on the scope
    and complexity of our engagement with the client. Fees based on a percentage of managed Plan assets
    will not exceed 1.00%. The fee-paying arrangements will be determined on a case-by-case basis and
    will be detailed in the signed consulting agreement.

                                              (Continued on Next Page)

ADV Part 2A – Firm Brochure                         Page 6                                 Gradient Capital Advisors, LLC

    Other Types of Fees & Expenses

    Non-Wrap Clients will incur transaction fees for trades executed by their chosen custodian. These
    transaction fees are separate from our firm’s advisory fees and will be disclosed by the chosen
    custodian. Charles Schwab & Co., Inc. (“Schwab”), does not charge transaction fees for U.S. listed
    equities and exchange traded funds.

    Clients may also pay holdings charges imposed by the chosen custodian for certain investments,
    charges imposed directly by a mutual fund, index fund, or exchange traded fund, which shall be
    disclosed in the fund’s prospectus (i.e., fund management fees, initial or deferred sales charges,
    mutual fund sales loads, 12b-1 fees, surrender charges, variable annuity fees, IRA and qualified
    retirement plan fees, and other fund expenses), mark-ups and mark-downs, spreads paid to market
    makers, fees for trades executed away from custodian, wire transfer fees and other fees and taxes on
    brokerage accounts and securities transactions. Our firm does not receive a portion of these fees.

    Wrap clients will not incur transaction costs for trades by their chosen custodian. More information
    about this can be found in our separate Wrap Fee Program Brochure.

    Termination & Refunds

    We charge our advisory fees quarterly in arrears. If you wish to terminate our services, you need to
    contact us in writing and state that you wish to cancel the advisory agreement. Upon receipt of your
    letter of termination, we will proceed to close out your account and charge you a pro-rata advisory
    fee(s) for services rendered up to the point of termination.

    Either party to a Retirement Plan Consulting Agreement may terminate at any time by providing
    written notice to the other party. Full refunds will only be made in cases where cancellation occurs
    within 5 business days of signing an agreement. After 5 business days from initial signing, either
    party must provide the other party 30 days written notice to terminate billing. Billing will terminate
    30 days after receipt of termination notice. Clients will be charged on a pro-rata basis, which takes
    into account work completed by our firm on behalf of the client. Clients will incur charges for bona
    fide advisory services rendered up to the point of termination (determined as 30 days from receipt
    of said written notice) and such fees will be due and payable

    Commissionable Securities Sales

    We do not sell securities for a commission in our advisory accounts.

Item 7: Types of Clients & Account Requirements
    We have the following types of clients:
       • Individuals and High Net Worth Individuals;
       • Trusts, Estates or Charitable Organizations;
       • Pension & Profit Sharing Plans
       • Corporations, Limited Liability Companies and/or Other Business Types

ADV Part 2A – Firm Brochure                       Page 7                               Gradient Capital Advisors, LLC

    While our firm does not have minimum or maximum account balance requirements for our Wrap
    Asset Management or Financial Planning & Consulting services, clients will generally not pay in
    excess of 1.5% of assets under management for combined services. If a client’s fee for combined
    services exceeds 1.5%, prior approval by the firm’s CCO is required.

    Our Comprehensive Portfolio Management service is only made available to family and friends.
    However, there are no requirements for opening and maintaining accounts or otherwise engaging us
    for any of our other services.