KRS Capital Management LLC

Item 5 Fees and Compensation
A. FEE SCHEDULES

KRS Capital Management is only compensated for advisory services in the following manner: A
percentage of assets under management or fixed fees, which are dependent upon the nature and
scope of the engagement.

1. Advisory fees for Investment Management Services. Advisory fees for Investment Management
Services are agreed upon at the time of engagement. In general, we do not require a minimum dollar
amount to open and maintain an advisory account; however, we have the right to terminate your
account if it falls below a minimum size which, in our sole opinion, is too small to manage effectively.

Investment Management fees are charged quarterly in advance and each invoice will normally be
based upon the market value of the portfolio, set forth by the custodian, as of the last market day of the
relevant calendar month and in accordance to the fee scale listed below. In some cases, the Adviser
requests a minimum annual fee of $5,000. However, at the time of engagement, the Adviser reserves
the right to modify Investment Management fees or to waive its minimum, depending upon the nature
of the engagement, complexity of services, time to be incurred, in consideration of pre-existing
relationships, or other special situations entirely at the Adviser's discretion. Therefore, the Adviser's
fees are negotiable.

Portfolio Value                                            Annual Advisory Fee
$1 million to $2 million                                            1.00%
Additional values above $2 million to $5 million                    .60%
Any additional values above $5 million                              .50%

The Advisory fee can be revised during the engagement but only with a 30-day pre-notification from
the Adviser. This may occur when the client's situation has changed materially, the scope of services
and complexities has changed, or other changes have occurred which impact service. Should the
client decide not to accept the fee adjustment, client can terminate services at any time.

In the rare case where there is an absence of a portfolio value (via the custodial firm); the Adviser will
utilize at least one independent third party to assess the value of the particular holding. Where services
are initiated at any time other than the beginning of a calendar quarter, advisory fees will be pro-rated.

Either party can terminate the agreement for Investment Management Services by written notice to the
other. Services may be immediately terminated within 5 business days of signature with no fees due if
the ADV Part 2 was not delivered at least 48 hours prior to engagement. Where services are
terminated prior to the end of a calendar quarter, the Adviser will promptly return a pro-rated refund of
pre-paid advisory fees.

2. Fees for Financial Planning Services are determined at the time of engagement based upon the
time and effort required and/or the nature and complexity of services, therefore fees may be
negotiated. The Adviser's minimum project fee is $5,000 for Financial Planning projects. KRS Capital
Management may require a retainer equal to ½ the proposed project fee in order to schedule services.
The Adviser does not accept fees for services to be performed six or more months in advance. Where
a retainer is required, the project balance is due upon the delivery of services. Should the client's
financial situation change during the course of services such that new advice, recommendations or

research are required or the Adviser must re-work the prepared financial planning services, additional
fees will apply. However, the Adviser will not engage in additional services that result in fees without
the client's approval.

Financial Planning Services may be terminated within 5 business days of signature with no fees due if
the ADV Part 2 was not delivered at least 48 hours prior to engagement. Otherwise, clients are only to
be invoiced for time incurred by the Adviser up until the effective date of termination or prepaid but
unearned fees will be promptly refunded.

3. Complimentary Weekly Market Letter
Clients receiving Investment Management Services receive the Adviser's weekly market update letter
on a complimentary basis.

B. PAYMENT OF FEES

1. Unless otherwise agreed in writing, Investment Management fees are payable quarterly in
advance as disclosed herein. Payment of Investment Management fees may be made directly to the
Adviser or through a debit directly to the client's account by the qualified custodian holding the client's
funds and securities. The Adviser follows the following process when payment is made via a qualified
custodian:

(1) The client provides written authorization permitting the fees to be paid directly from the client's
account held by the independent qualified custodian and the authorization is limited to withdrawing
contractually agreed upon Investment Adviser fees; (2) The client will directly receive regular (monthly
or quarterly) reports from the qualified custodian which reflect the Adviser's fee deduction; (3) The
frequency of fee withdrawal shall be specified in the written authorization/agreement; (4) The custodian
of the account shall be advised in writing of the limitation on the Adviser's access to the account; and
(5) The client shall be able to terminate the written billing authorization or agreement at any time.

It is important to note that custodial firms do not verify advisory fees. Therefore, clients should review
their custodial statements carefully. If a client should have any questions or concerns in connection
with an advisory fee deduction, they should promptly contact KRS Capital Management.

If at any time during the engagement, the client fails to receive the regular statements produced by the
custodian, it is important for the client to promptly notify KRS Capital Management and the custodial
firm.
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Item 7 Types of Clients
KRS Capital Management is available to provide advisory services to individuals, including high net
worth individuals, pension and profit-sharing plans, trusts, estates, charitable organizations,
corporations and business entities.

KRS Capital Management desires a minimum annual fee of $5,000; however, the Adviser retains the
right to negotiate alternative fee arrangements on a case by case basis.

The Adviser reserves the right to decline to provide Investment Management Services to any person or
firm in its sole discretion.

If an account is subject to the Employee Retirement Income Security Act of 1974, as amended,
("ERISA"), the Adviser acknowledges that Adviser is a fiduciary within the meaning of the Act and the
ERISA Client is a named fiduciary with respect to the control or management of the assets in the
Account. In each instance, the Client will agree to obtain and maintain a bond satisfying the
requirements of Section 412 of ERISA and to include the Adviser and the Adviser's principals, agents,
and employees under those insured under that bond and will deliver to the Adviser a copy of the
governing plan documents. If the Account assets for which the Adviser provides services represent
only a portion of the assets of an employee benefit plan, Client will remain responsible for determining
an appropriate overall diversification policy for the assets of such plan.