Lonestar Registered Investment Advisors PLLC

5: Fees and Compensation) and in our Investment Proposal and Contract (Schedule D:
Schedule of Fees).
The above fees are negotiable. Fees are assessed quarterly in arrears based on the amount
of the assets managed as of the end of the previous quarter and will take into account
additions and withdrawals in the time period. All management fees are withdrawn from the
Client’s account unless otherwise noted. GI will receive written authorization from the
Client to deduct advisory fees from their account held by a qualified custodian. GI will pay
LRI their share of the fees. LRI does not have access to deduct Client fees. Clients may
terminate their account within five (5) business days of signing the investment advisory
agreement without penalty or obligation. For terminations after the initial five business
days, GI will be entitled to a pro-rata fee for the days service was provided in the final
quarter. GI will pay LRI their portion of the final fee.
Incentive Program - GI
In addition to the regular advisory fee, GI has instituted a long-term incentive arrangement
by LRI can share in GI’s portion of the management fee. This does not change the cost to the
Client; it is a sharing arrangement paid from GI’s portion of the advisory fee. The incentive
arrangement will be paid annually according to the following table:

             LRI quarterly AUM with GI                       Participation rate in GI’s fee
                   $10,000,000                                          3.00%
                   $25,000,000                                         10.00%

                  $50,000,000                                      12.50%
                  $75,000,000                                      15.00%

Once LRI reaches and maintains the thresholds listed above, the participation rate applies to
all of the AUM for the quarter.
To receive the incentive award, LRI needs to meet two qualifications. First, the quarter end
billable AUM must be above the threshold amounts specified. Second, LRI must be an
advisor “in good standing” with GI at the time the annual checks are issued. “In good
standing” means the advisor is proactively placing assets with GI.
This relationship will be disclosed to the Client in each contract between LRI and a Third
Party Money Manager (“TPM”). LRI does not charge additional management fees for Third
Party managed account services. Client's signature is required to confirm consent for
services within Third Party Investment Agreement. Client will initial LRI Investment
Advisory Agreement to acknowledge receipt of Third Party fee Schedule and required
documents including Form ADV Part 2 disclosures.
ERISA PLAN SERVICES
The annual fees are based on the market value of the Included Assets and will not exceed
1%. The annual fee is negotiable and may be charged as a percentage of the Included Assets
or as a flat fee. Fees will be charged quarterly or monthly in arrears or in advance based on
the assets as calculated by the custodian or record keeper of the Included Assets (without
adjustments for anticipated withdrawals by Plan participants or other anticipated or
scheduled transfers or distribution of assets). If the services to be provided start any time
other than the first day of a quarter or month, the fee will be prorated based on the number
of days remaining in the quarter or month. If this Agreement is terminated prior to the end
of the billing cycle, LRI shall be entitled to a prorated fee based on the number of days
during the fee period services were provided or Client will be due a prorated refund of fees
for days services were not provided in the billing cycle.
The fee schedule, which includes compensation of LRI for the services is described in detail
in Schedule A of the ERISA Plan Agreement. The Plan is obligated to pay the fees, however
the Plan Sponsor may elect to pay the fees. Client may elect to be billed directly or have fees
deducted from Plan Assets. LRI does not reasonably expect to receive any additional
compensation, directly or indirectly, for its services under this Agreement. If additional
compensation is received, LRI will disclose this compensation, the services rendered, and
the payer of compensation. LRI will offset the compensation against the fees agreed upon
under the Agreement.
FINANCIAL PLANNING and CONSULTING
LRI charges either an hourly fee or fixed fee based on complexity and unique Client needs
for financial planning. Prior to the planning process the Client will be provided an estimated
plan fee. Services are completed and delivered inside of ninety (90) days contingent upon
the client’s timely delivery of all required documentation to LRI.
    HOURLY FEES
    Financial Planning Services are offered based on an hourly fee of $200 per hour based
    on complexity and unique client needs.
    FIXED FEES
    Financial Planning Services are offered based on a negotiable fixed fee with a maximum
    fee of $2,500 based on complexity and unique client needs.

 Fees for financial plans are due upon delivery of the completed plan.
 Client may cancel within five (5) business days of signing Agreement with no obligation and
 without penalty. If the Client cancels after five (5) business days, any unpaid earned fees will
 be due to LRI.

Client Payment of Fees
 Fees for Co-Advisor asset management services provided by TPM are deducted from a
 designated Client account by TPM to facilitate billing.
 The Client must consent in advance to direct debiting of their investment account.
 Fees for ERISA services will either be deducted from Plan assets or paid directly to LRI. The
 Client must consent in advance to direct debiting of their investment account.
 Fees for financial plans will be billed:
    •   Check – to be remitted by Client to LRI
    •   Electronic Payment via ACH, Debit Card, or Credit Card (fees will be paid via a third
        party payment processor in which the client will securely input payment information
...

Item 7: Types of Clients
Description
 LRI generally provides investment advice to individuals, high net worth individuals, pension
 and profit sharing plans, trusts, estates, , corporations or business entities.
 Client relationships vary in scope and length of service.
Account Minimums
 LRI does not require a minimum client net worth to provide financial planning services.
 Accounts managed by the TPM may have minimum requirements to open an account in
 certain portfolios as disclosed in the TPM ADV Part 2A.