Marstone LLC

Item 5 –Fees and Compensation

Services & Fees

Marstone offers investment account management services to clients on a discretionary basis acting
either as an advisor or sub-advisor. The accounts established by Marstone will be maintained at the
Firm’s custodian(s), currently through Pershing, LLC and Pershing Advisor Solutions, LLC
(collectively “Pershing”). Marstone’s fees (the “Monthly Fee”) will be based on the market value of
a client account’s assets under management determined on the last business day of the previous
monthly period and will become due the first day of the new business month. You may choose from
wrapped or non-wrapped programs.

In a wrap fee program, the sponsor provides a bundle of services to client participants in return for
a single fee that “wraps” around the various services. An example of these services includes
maintaining and providing a model portfolio and assisting in major trades such as large purchases
or sales resulting from substantial changes in the model.

Wrap fee programs may offer certain advantages to participants, such as enabling smaller clients to
obtain the services of Marstone for accounts that would typically be too small to be managed as
private accounts. Participants should be aware, however, that wrap account fees may, at times, be
higher than the fees that other accounts might pay to retain our services. If you would like to
participate in one of our wrap fee programs, please ask us for a copy of the relevant wrap fee
brochure.

Marstone clients shall receive investment advisory services as identified herein in consideration of
the Monthly Fee. The terms and conditions for client participation are set forth in this Brochure.

Marstone has entered various advisory agreements to provide digital advice to clients for which its
advisory fee shall, generally, range from 0.45% to 0.75% annually, depending on, in part, services
provided by Marstone and whether such services are direct to customer or serving in sub-advisor
capacities. Details of specific fees shall be detailed in the applicable investment advisory agreement.
Advisory service fees, expressed as a Monthly Fee, shall be calculated by multiplying the market
value of the assets under management in the account at the end of the preceding month.

The period for which the initial Monthly Fee will be calculated will run from the day Marstone
begins management of the client’s account through the last business day of the current calendar
month, which shall be prorated for any portion of the initial calendar month during which the
account was managed.

If necessary, Marstone may direct the sale of securities sufficient to pay the Monthly Fee. Any fees
or charges may be changed, waived or reduced at Marstone’s sole discretion for any period of time
and for any account.

Marstone is a fee-only investment advisor. Neither the Firm nor its employees receive any direct or
indirect compensation related to investments that are purchased or sold for clients.

Client Information Provided to Other Portfolio Managers

Marstone currently provides all portfolio composition decisions. Though Marstone may utilize other
portfolio manager services to optimize platform performance, no specifically-identifying client
information is provided to any other portfolio manager.

Client Contact with Portfolio Managers

Marstone offers investment account management services to clients on a discretionary basis acting
either as an advisor or sub-advisor. Marstone clients have continual contact with Marstone’s portfolio
management, or in the case of sub-advisory relationships, through the client’s primary advisor. Clients
using Marstone’s digital platform through engagement with a principal advisor will still maintain its
client contact through that advisor. Marstone, however, will be available to resolve any issue identified
by principal advisor to ensure management of their accounts consistent with investors’ stated
objectives.

Billing Methods

Clients will authorize Marstone to deduct advisory fees from client accounts held at its partner
custodians/ custodial broker-dealers. It is Marstone’s policy to bill managed accounts in arrears on a
monthly basis.

Other Fees and Expenses

In addition to the fees charged by Marstone, each exchange traded fund (“ETF”) company in which a
client’s funds may be invested, charges fees paid by the investors that are deducted from the ETF’s
assets (“Fund Fees”). These Fund Fees pay for the management and other expenses of the ETFs. The
fees are categorized as annual operating expenses. Fund Fees are disclosed in each ETF prospectus.
Marstone clients are encouraged to consult each individual prospectus to become familiar with such
Management Fees. The Custodian may charge brokerage commissions or other fees for effecting
certain securities transactions (i.e., commissions are charged for individual equity securities
transactions).

Marstone does not currently charge clients for costs associated with the closing of their accounts. As
with other fees, Marstone reserves the right to change its fee charges or policies as it deems necessary.

Other Terms & Conditions

Marstone clients and sub-advisory clients will be required to enter into a Client Services Agreement
setting forth the terms and conditions under which Marstone shall manage the client's assets, and a
separate custodial/clearing agreement. Both Marstone's Client Services Agreement and the
custodial/clearing agreement authorize the custodian to debit the client’s account for the amount of
Marstone's investment advisory fee and to directly remit that fee to Marstone. The Client Services
Agreement between Marstone and the client will continue in effect until formally terminated by either
party. In the event the client terminates Marstone’s services, the balance of any unearned fee, if any,

shall be refunded to the client.

Item 7 – Types of Clients and Account Requirements
Marstone offers investment advisory services to individuals in their personal and individual retirement
and self-employment accounts, and to institutions, or their individual clients, via sub-advisory
agreement.

Minimum Account Balance

Generally, Marstone will require a minimum client investment of $500 in order to be accepted on an
individual basis at the discretion of Marstone, or other minimums as established by the platform
sponsor in sub-advisory relationships, which shall be fully disclosed. We, at our sole discretion, may
accept clients with smaller portfolios based upon certain factors including:

          ▪   anticipated future earning capacity,
          ▪   anticipated future additional assets,
          ▪   account composition,
          ▪   related accounts, and
          ▪   pre-existing client relationships.