Lockshield Partners Inc

Item 5: Fees & Compensation

How We Are Compensated for Our Advisory Services

Comprehensive Portfolio Management:

Our annual fees shall be based on a negotiated percentage of the market value of the assets under
management not to exceed 1.50%. The fees shall be payable in one of the formats below. These fees
shall be detailed on Schedule A of the client agreement.

Quarterly Fee Payable in Advance
Our annual fees shall be based on a negotiated percentage of the market value of the assets under
management not to exceed 1.50% (“Annual Percentage Rate”). The fee is based on the market value of
assets in the account, including cash holdings, and is payable quarterly in advance. The annual fee is
billed on a pro-rata basis based on the value of your account on the last day of the previous quarter.
Your initial quarterly advisory fee will include a pro-rated amount for services rendered from the
account enrollment date with the qualified custodian. Fees are negotiable and will be deducted from
your account.

Quarterly Billing Cycle (Every Three Months)
Your quarterly billing cycle will depend on your account enrollment date. Your billing cycle will
commence at the beginning of the month following your account enrollment date. For example, if your
account enrollment date is May 15, you would be billed at the beginning of each following June,
September, December and March, based on the market value of your assets under management as of
the last business day of May, August, November and February (subject to adjustment as described
below).
For example, if the market value of your assets under management is $100,000 on May 31, and your
Annual Percentage Rate is 1.50%, at the beginning of June, you would be billed as follows: $100,000
(market value at May 31) times 1.50%, divided by 360 (assumed days in year) times 90 (assumed days
in quarter) = $375.00.

Adjustment for Deposits and Withdrawals During Preceding Quarter
If, however, you made any deposits to or withdrawals from your account during the preceding quarter,
the quarterly fee will be adjusted on a prorated basis.

For example, assume you are billed at the beginning of June and the market value of your assets under
management was $100,000 at May 31, but you had withdrawn $20,000 from your account on April 15.
The quarterly fee assessed at the beginning of June would be based on an adjusted market value of
assets under management of $110,000, computed as follows: $120,000 x 46 (number of days in the
quarter prior to account withdrawal) plus $100,000 x 46 (number of days in the quarter following
account withdrawal), divided by 92 (total number of days in quarterly period) = $110,000.

Initial Billing – Normal Advance Quarterly Billing Plus Arrears Billing
Your initial quarterly bill will include the advance quarterly billing as described above plus an arrears
billing which is necessary to charge your account for assets deposited before a fee is assessed.
For example, assume your Annual Percentage Rate is 1.50%, your account was initially funded with
$100,000 on May 14 and no other deposits were made before June 1. In addition to the normal quarterly
advance billing, you would be billed for the assets under management for the period from May 15 and
May 31 on a pro rata basis as follows: the initial deposit ($100,000) times the Annual Percentage Rate
(for purposes of this example, 1.50%) divided by 360 (assumed year of 360 days) times 17 (the number

 of days the deposit was in the account) = $70.83.

 Tiered Alternative Fee Schedule:

                                                                            Blended rate at Reconcile
Bottom End        Top End            Rate     Fee for Tier   Cumulative Fee top end         Amount
            $-       $100,000.00     1.50%     $1,500.00         $1,500.00           1.50%      $1,500.00
  $100,000.01        $250,000.00     1.00%     $1,500.00         $3,000.00           1.20%      $3,000.00
  $250,000.01        $500,000.00     1.00%     $2,500.00         $5,500.00           1.10%      $5,500.00
  $500,000.01      $1,000,000.00     0.90%     $4,500.00        $10,000.00           1.00%     $10,000.00
 $1,000,000.01     $2,500,000.00     0.70%    $10,500.00        $20,500.00           0.82%     $20,500.00
 $2,500,000.01     $5,000,000.00     0.30%     $7,500.00        $28,000.00           0.56%     $28,000.00
 $5,000,000.01    $10,000,000.00     0.25%    $12,500.00        $40,500.00           0.40%     $40,500.00
$10,000,000.01             above     0.20%

 Occasionally, we will directly bill clients. As part of the fee deduction process, the client is made aware
 of the following:

    a) LPL as the client’s custodian sends statements at least quarterly, showing all disbursements for
       each account, including the amount of the advisory fees paid to our firm;
    b) Clients provide authorization permitting LPL to deduct these fees;
    c) LPL calculates the advisory fees for all fee schedules and deducts them from the client’s account;
    d) Our firm sends quarterly statements to the client showing the fee amount, the value of the assets
       upon which the fee is based, and the specific manner in which the fee is calculated as well.

 Clients may terminate advisory services with thirty (30) days written notice. Client will be entitled to a
 pro rata refund for the days service was provided in the final quarter. Client shall be given thirty (30)
 days prior written notice of any increase in fees, and client will acknowledge, in writing, any agreement
 of increase in said fees.

 Financial Planning & Consulting:

 Lockshield Partners offers financial planning services for a flat fee. The fee can vary based on complexity of
 situation and scope of engagement. Financial planning fees are to be paid as a one-time, up-front fee for a
 one-time plan. We also bill monthly or quarterly for ongoing planning arrangements. Lockshield Partners
...

Item 7: Types of Clients & Account Requirements

We generally have the following types of clients:
    • Individuals and High Net Worth Individuals;
Client relationships vary in scope and length of service. We do not impose requirements for
opening and maintaining accounts or otherwise engaging us.