Modern Capital Advisors LLC

Item 5 - Fees and Compensation

Description
This section provides description of each service’s (e.g., financial planning, third party managers, and asset
management services) fees and compensation arrangements with MCA.

Financial Planning Services
Financial plans are priced according to the degree of complexity associated with the client’s situation.
Fees are negotiable but generally range from $250 to $750 per hour.

Asset Management Services
Asset management service fees are billed monthly, quarterly in advance or annually in arrears based
on the asset value on the last day of the billing period. This means we may invoice you before or after
the billing period has begun or ended. Fees are usually deducted from a designated client account to
facilitate billing or the client may be invoiced directly (e.g., MCA will not have authority to debit fees
directly). The client must consent in advance to direct debiting of their investment account and any
billing arrangement must be approved by the client in writing.

    While negotiable, the below is MCA’s standard fee schedule:
▪   Up to 2.0% on accounts up to $250,000*
▪   Up to 1.75% on accounts over $250,000 and up to $500,000
▪   Up to 1.5%% on accounts over $500,000 and up to $1,000,000 and
▪   Up to 1.25% on accounts above $1,000,000.

*Fees above 2% are considered high by certain States and you may find these services available
at lower rates.

Solicitor Arrangements
When referring clients to third party money managers, MCA receives a portion of the fees generated
from the referral. You do not directly pay us or your representative for this service. The management
fees, methods of calculation and manner in which fee is billed/collected varies for each money
manager. The fees, methods of calculation and manner in which fees are billed/collected are described
in the money manager’s disclosure brochure. Fees typically range from 1.0%-2.5% and the portion of
this fee that is paid to us varies pursuant to the agreement between us and the money manager and is
disclosed in the Solicitation Disclosure Statement signed by you.

Various money managers may negotiate the fees charged for management services with you (which
are disclosed in the agreement for services executed between you and the money manager), our
portion of the fee received may be negotiable as well, depending on the agreement between MCA and
the third-party money manager. You should be aware that although this fee does not appear to be a
direct cost to you, the money manager takes this fee into consideration when determining the amount
of fee they charge you. All fees are calculated and charged by the money manager and the money
manager is responsible for paying our portion of the fee to us.

Third-party money managers generally have account minimum requirements that will vary from
manager to manager. A complete description of the money manager’s services, fee schedules and
account minimums will be disclosed in the money manager’s disclosure brochure or wrap fee brochure
that is provided to you at the time you sign an agreement for services and the account is established.
Client reports will depend upon the money manager.

MCA may pay a third-party as a solicitor for referring assets to MCA. This arrangement requires a
disclosure to the client describing the nature of payments to the solicitor, and whether the solicitor has
certain disclosable historical items per SEC rules.

Retirement Plan Consulting Fees
Retirement Plan Consulting fees vary from plan to plan and can be based on the asset size or monthly
flat fee, which is typically $500 to $1,000 per month with no minimum or maximum.

Other Fees and Compensation
Custodians may charge transaction fees on purchases or sales of certain mutual funds and exchange-
traded funds.

Managed accounts may be held at RBC Correspondent Services (RBC) or Axos Advisor Services’
(Axos) or other custodians prescribed by certain 3 rd-party money managers. These custodians may
charge transaction fees for the purchase and sale of certain securities. MCA does not receive any
portion of these transaction fees.

MCA, at its sole discretion, may waive its minimum fee and/or charge a lesser investment advisory fee
based upon certain criteria (e.g., historical relationship, type of assets, anticipated future earning
capacity, anticipated future additional assets, dollar amounts of assets to be managed, related
accounts, account composition, negotiations with clients, etc.).

Some of our representatives are also registered representatives Modern Capital Securities, Inc,
affiliated broker-dealers. If you elect to have our representatives implement the advice provided
as part of the financial planning services, this may be done by them in their separate capacities as
registered representatives. This situation represents a conflict of interest because our
representatives could receive fees for the financial planning advice and could also receive
commissions for implementing the recommendations in their separate capacity as a registered
representative. It also provides incentive to recommend investment products based on the
compensation received rather than your needs. You are not obligated to implement the advice provided
by our representatives or to implement the transactions through our affiliate broker-dealer. You are free
to select any broker-dealer or registered representative to implement the recommendations provided
by our representatives.

In addition, some of our representatives may be licensed insurance agents. If you elect to purchase
insurance products through our representatives in this separate capacity, they will earn commissions.
This is a conflict of interest because they could receive fees for the advice and also receive
commissions for implementing insurance transactions. You are not obligated to implement the advice
provided by our representatives or to implement transactions through our representatives in their
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Item 7 - Types of Clients

Description
MCA provides portfolio management services to individuals, high net worth individuals, pension and profit-
sharing plans, charitable organizations, and corporations.

Account Minimums
Minimum account size is determined by the specific investment strategy your representative recommends
for your portfolio. The smallest account minimum strategy is currently $5,000. Your representative may
implement an account minimum that is higher.

MCA has the discretion to waive the account minimum. Accounts of less than $25,000 may be set up when
the client and the advisor anticipate the client will add additional funds to the accounts bringing the total to
$25,000 within a reasonable time. Other exceptions will apply to employees of MCA and their relatives, or
relatives of existing clients.