Mentor Capital Management Inc

ITEM 5 – CLIENTS, FEES AND COMPENSATION

A. Methods of compensation
Fees paid by clients are the only source of compensation received by Mentor Capital Management
Inc. and its supervised persons. In no case will Mentor Capital Management Inc. or any of its
supervised persons accept fees or compensation from someone other than a client.

Fees for Mentor Capital Management Inc. Wealth Management Services are calculated in one of
two ways:

    1.) Flat fee
An annual fee is calculated based on the expected complexity of the case, including but not limited
to asset base, net worth and planning needs. This fee is assessed and paid typically in four equal
installments.

    2.) Asset-based fee
$1 to $500,000 of investment assets                                        0.25% quarterly
$500,001 to $1 million of investment assets                             0.1875% quarterly
$1 million or more of investment assets                                  0.125% quarterly

Clients may pay a flat fee, an asset-based fee or both, depending on the needs of the client and the
terms of the engagement.

Hourly fees and project fees are based on the adviser’s assessment of the complexity of the case or
the work involved.

In certain instances, depending on a client's needs and the services to be performed by Mentor
Capital Management Inc., a contract may be entered into with a fee different from the fee schedule
set forth above. This fee would be based on negotiation with the client.

Fees for Mentor Capital Management Inc. Project Services are negotiated individually with each
client and are based on the complexity of the work involved.

Fees for Mentor Capital Management Inc. Hourly Services are negotiated individually with each
client and are based on complexity of the work involved and the time spent by the adviser in
providing the service.

                       MINIMUM AND MAXIMUM ANNUAL FEES
There are no minimum or maximum annual fees.

Investment assets are defined as stocks, bonds, warrants, options, mutual funds, qualified
retirement accounts, certificates of deposit, cash, checking and savings accounts, money market
accounts, credit union accounts, limited partnerships and such other assets as may be agreed upon.

B. How fees are paid
Fees in flat-fee engagements and in asset-based engagements shall be paid from accounts not under
advisement by Mentor Capital Management Inc. or pro-rata from the accounts for which such
services are provided. In the event that Investment Advisory fees cannot be paid from such
accounts (for example, 401(k) or 403(b) accounts), fees shall be paid from non-tax qualified
accounts under advisement by Mentor Capital Management Inc. or from accounts not under
advisement by Mentor Capital Management Inc. On a quarterly basis fees are deducted from client
accounts or are paid from accounts not under advisement by Mentor Capital Management Inc.

C. Other types of fees and expenses
Layering – Where client investments are made in shares of mutual funds, exchange-traded funds,
closed-end funds or variable annuity subaccounts, clients may pay both a direct management fee to
Mentor Capital Management Inc. and an indirect management fee to the fund or subaccount in
which they invest.
Brokerage commissions and transaction fees – Where securities or fund shares are purchased in
client accounts, the client may pay a brokerage commission or transaction fee. In no case does
Mentor Capital Management Inc. receive a financial benefit from this commission or transaction
fee. Please see Item 12 on Page 15 for a further discussion of brokerage practices.

D. Fees paid in advance
Fees in flat-fee engagements, asset-based engagements and project engagements are paid in
advance. However, in no case may such fees be paid more than six months in advance.

A client or the adviser can terminate the relationship at any time. An advisory client has a right to
terminate the engagement without penalty within five (5) business days after entering into the
engagement. Any refund beyond the five-day period will not exceed one-half of the annual fee.
After six months, the refund is pro-rata by month.

E. Additional compensation
Under no circumstances will Mentor Capital Management Inc. or its supervised persons receive
compensation for placement of insurance contracts or from the sale of securities or other
investment products, including asset-based sales charges or service fees from the sale of mutual
funds. Such an arrangement could present a conflict of interest; it might provide an incentive to
recommend investment products based on compensation received. Mentor Capital Management
Inc. and its supervised persons avoid this conflict by accepting compensation ONLY from clients.

Neither Mentor Capital Management Inc. nor any of its supervised persons accepts payments for
referrals; neither do they pay other professionals for referrals.

Mentor Capital Management Inc. and its supervised persons may recommend that clients purchase
shares of mutual funds. In such cases it is always recommended that clients purchase shares of “no-
load” mutual funds.

Although Mentor Capital Management Inc. and its supervised persons may recommend a broker to
clients, clients have the option to purchase such investment products through any broker or agent.
See Item 12 on Page 15 for a further discussion of brokerage practices.

ITEM 7 – TYPES OF CLIENTS

Mentor Capital Management Inc. generally provides investment advice to individuals. From time to
time, however, it may also provide services to pension and profit sharing plans, trusts, estates,
charitable organizations or corporations and other business entities.

Mentor Capital Management Inc. does not impose a minimum dollar value of assets or any other
condition for starting or maintaining an account. Accounts may be of any size, investments of any
type.