Michael J Porro & Co Financial Advisors Inc

ITEM 5- FEES & COMPENSATION

Investment Management Fees and Compensation

Our Firm charges a fee as compensation for providing investment Management services on your account. These
services include advisory services, trade entry, investment supervision, and other account maintenance activities.
Our recommended custodians may charge transactions costs, custodial fees, redemption fees, retirement plan
and administration fees or commissions. See Additional Fees and Expenses below for details.

A calendar monthly investment management fee is billed at the beginning of each month determined by the value
of the account on the last day of the preceding month. Our maximum annual advisory fee is 1.5%. The relevant
fee and billing method is defined and agreed to by the Firm and you in the executed Investment Advisory
Agreement. The fee may be debited directly from your investment account, or you may pay this fee separately.
You will need to indicate how you would like to pay this fee in your Investment Advisory Agreement. Additional
fees and expenses may be assessed such as brokerage commissions, principal markups and discounts, mutual
fund/ETF expense charges, 12B-1 fees, tax withholding on foreign securities, postage and wire fees, bank
charges and other administration fees. Please refer to Section 12 for information on brokerage fees and services.

Fees may vary based on the size of the account, complexity of the portfolio, extent of activity in the account, or
other reasons agreed upon by our Firm and you as our client. In certain circumstances, our fees and the timing
of the fee payment may be negotiated. Our employees and their family-related accounts are charged a reduced

fee for our services.

Unless otherwise instructed by the Client, we will aggregate related client accounts for the purposes of
determining the account size and annualized fee. The common practice is often referred to as “house-holding”
portfolios for fee purposes and may result in lower fees than if fees were calculated on portfolios separately.
Our method of house-holding accounts for fee purposes looks at the overall family dynamic and relationship.
When applicable and noted in the Appendix of the Investment Management Agreement, legacy positions will
also be excluded from the fee calculation.

The independent and qualified custodian holding your funds and securities will debit your account directly for
the advisory fee and pay that fee to us. When establishing a relationship with Michael J. Porro & Co., you
provided written authorization permitting the fees to be paid directly from your account held by the qualified
custodian. Further, the qualified Custodian agrees to deliver an account statement to you monthly indicating all
the amounts deducted from the account including our advisory fees.

Either Michael J. Porro & Co. or you may terminate the management agreement upon a 30-day written notice to
the other party. The management fee will be pro-rated to the date of termination, for the month in which the
cancellation notice was given and any earned fee will be billed to you by our Firm.

Upon termination, you are responsible for monitoring the securities in your account, and we will have no further
obligation to act or advise with respect to those assets. In the event of client’s death or disability, Michael J.
Porro & Co. will continue management of the account until we are notified of client’s death or disability and
given alternative instructions by an authorized party.

In no case are our fees based on, or related to, the performance of your investments.

Fees for manager portfolio work are billed monthly according to the following schedule. Once a break point is
reached, the entire portfolio enjoys the lower rate, not just those assets valued above the breakpoint. For
example, taking the first breakpoint of $125,000. Until your portfolio reaches this level, our management fees
are 1.50%. Thus, our annual fee for a $124,999 portfolio is $1,875. Once your portfolio reaches $125,000, our
fees fall to 1.375% or to $1,719. The management fee is determined on the value of the last day of the month.
Therefore, if the value happens to fall on the last day of the month after having been higher for the prior twenty-
nine days, our fee is lower. On the other hand, if the value jumps on the last day of the month, after having been
lower throughout the previous twenty-nine days, our fee is higher. We believe that this averages itself out over
time and do not fuss one way of the other.

                                  Discretionary Management Fee Schedule

                                                  Annual Rates

                                    1.500% for accounts under $125,000
                           1.375% for accounts above $125,000 and under $250,000
                           1.250% for accounts above $250,000 and under $375,000
                           1.125% for accounts above $375,000 and under $500,000
                           1.000% for accounts above $500,000 and under $750,000
                                    0.875% for accounts above $750,000

Consulting, Financial Planning and Tax Preparation Services

Michael J. Porro & Co. provides hourly planning services for clients who wish such advice. Such fees will be
billed hourly, and you will be invoiced monthly for such work.

Our hourly rate for what we refer to as billable services ranges from between $75-285 per hour, depending on
the level of work entailed. Clerical work, including bookkeeping services begins at the $75 level. Experienced

financial advice is billed out at the $285 level. Junior financial advice is billed out at a $165 hourly level.
Generally, a retainer of up to $1,000 is required for billable work prior to our commencement of such work.
Thereafter, work is completed and billed to you on a monthly basis. We may waive this retainer upon our
...

ITEM 7- TYPES OF CLIENTS

We provide investment advice to individuals, high and low net worth individuals, charitable organizations, trusts,
estates, corporations, limited-liability companies, and other business entities.

We do not require a minimum in aggregate investable assets. However, because trading costs may be fixed and
per transaction, smaller accounts could incur incrementally higher trading costs expressed as a percentage of the
account balance.