Level Financial Advisors Inc

Item 5 Fees and Compensation

Clients are typically charged in two ways: As Financial Planning Clients or Advisory Clients.
Advisory Clients are segmented into two distinct service offerings based on their assets under
management. These clients are charged a fee as a percentage of assets managed.

    Foundation Segment              UP TO                $1,000,000 AUM
    Cornerstone Segment             OVER                 $1,000,000 AUM
For all segments we charge an annualized fee based on the size of a client's managed portfolio,
providing greater service options in each segment (more meetings, more complex financial
planning, family wealth planning, customized reporting, etc.). A portfolio may consist of a single
account or several accounts managed for the same client.

Our Assets Under Management Premium Fee Schedule is:
  • 1.15 percent of the first $500,000.00
  • 0.85 percent of the next $500,000.00
  • 0.8 percent of the amount between $1,000,000.01 and $2,000,000.00
  • 0.7 percent of the amount between $2,000,000.01 and $3,000,000.00
  • 0.6 percent of the amount between $3,000,000.01 and $4,000,000.00
  • 0.4 percent of the amount between $4,000,000.01 and $10,000,000.00
  • 0.3 percent of the amount above $10,000,000.00

For clients with less than $525,000 in assets, the firm may charge a minimum fee of $1,500 per quarter.

One-quarter of our annual fee is collected from a portfolio in January, April, July, and October. It is
based on the value of the managed portfolio on the last day of the previous calendar quarter.

Here is an example of our quarterly fee structure using our fee schedule:

Clients John and Mary Smith have three accounts managed by our firm. The three accounts
together are worth $3,500,000 on March 31. Their quarterly fee is calculated this way:

   •   The first $500,000 is charged $1,437.50 (one-quarter of the 1.15 percent
       annual fee).
   •   The next $500,000 is charged $1,062.50 (one-quarter of the 0.85 percent
       annual fee).
   •   The next $1,000,000 is charged 2,000 (one-quarter of the 0.8 percent
       annual fee).

Form ADV - Part 2A

   •   The next $1,000,000 is charged 1,750 (one-quarter of the 0.7 percent
       annual fee).
   •   The remaining $500,000 is charged $750 (one-quarter of the 0.6 percent annual
       fee). Their total fee for the quarter is $7,000.
   •   If their account remained at exactly the same value all year, their annual fee would be
       $28,000 (0.8 percent on an annual percentage basis).

Clients who were with us before our current fee schedule was adopted may be grandfathered on
different schedules. Some pay lower fees than those noted above or are exempt from fees. We do
not charge fees for accounts of principals, or employees, or members of their immediate families.

Our asset-based fees are charged in advance at the beginning of each quarter. This means you
will pay a fee for the services we will perform over the next three months. We will send all clients a
detailed bill each quarter. Most clients allow us to deduct their fees from their managed accounts
by authorizing a limited power of attorney to Level Financial Advisors. However, if a client prefers,
fees can be billed directly to the client. Prompt payment by check or ACH is expected.
For directly-managed, held-away accounts, (e.g. 401k’s), as it is not possible to debit our fees from
such accounts, our fees will be assigned to the client’s taxable accounts or in some cases, billed
directly to the client via electronic ACH request.

New clients are charged a prorated fee based on the total number of days remaining in the existing
quarter from the day that their funds are invested. For example, a client that has their funds
invested on October 22nd will be charged an immediate prorated fee figured in the following
manner:

Total Fee (per our stated fee structure) ÷ Total Days in the Quarter X Total Days Remaining in
Quarter on Day of Investment.

Example

John Doe has $500,000 in invested assets on 10/22. Fee schedule dictates a minimum fee =
$1,500.00. Daily Prorated Fee = $1,500.00/92 (the total number of days in the 4th quarter) =
$16.30 per day.

$16.30 X 70 (the total # of remaining days in the quarter) = $1,093.75.

New clients with invested assets after the 15th day of the last month in any quarter will not be
charged a prorated fee. Billing in these instances will begin on the first day of the following quarter
and will not be prorated.

A client may cancel his/her/its relationship with our firm at any time by telephone or in writing. We
will refund the full amount of fees if the cancellation comes in the first five days of our relationship.

Form ADV - Part 2A

Otherwise, the refund will be calculated on unearned fees within ten days of our receipt of a client's
cancellation of service. Refunds are made by check and mailed to clients. For financial-planning-
only services, refunds are not provided.

In addition to our quarterly account management fee, mutual funds used by clients charge internal
expense fees subtracted from each fund's assets. Clients may also pay a trading fee of $20 to our
custodian, Charles Schwab & Co., to buy or sell a particular mutual fund. Some of the funds we
use subsidize that fee so that clients do not pay it directly. Others do not subsidize the fee,
requiring clients to pay it, but in those cases, the funds pass on the savings to clients by charging
lower expense fees.

In addition to our quarterly account management fee, ETFs used by clients may have fees
associated with them including a SEC transaction charge. This fee is usually a very small
percentage of the total dollar amount of a securities transaction and is collected by Charles
Schwab & Co (or other broker) at the time of the transaction. The fee amount is usually adjusted
annually.

We do not accept compensation for the sale of securities or other investment products from any
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Item 7 Types of Clients

We offer investment advice and portfolio management primarily to individuals and families, estates,
trusts, and non-profit organizations. We also act as retirement plan advisors for small businesses.
Our clients come from all age groups, ranging from infants with education accounts to retirees. We
also handle estate accounts for the families of deceased clients.