October Effect Ltd

Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
ASSET MANAGEMENT
October Effect Ltd. offers discretionary direct asset management services to advisory Clients.
October Effect Ltd. charges an annual investment advisory fee based on the total assets under
management as follows:
      Assets Under Management           Maximum Annual Fee             Maximum Quarterly Fee
           $10,000 - $25,000                  1.60%                          .4000%
          $25,001 - $100,000                  1.50%                          .3750%
        $100,001 to $500,000                  1.30%                          .3250%
         $500,001 - $800,000                  1.20%                          .3000%
        $800,001 - $1,000,000                 1.05%                          .2625%
       $1,000,001 - $1,500,000                0.90%                          .2250%
       $1,500,001 - $2,100,000                0.80%                          .2000%
            Over $2,100,001                   0.70%                           .175%
This is a tiered or breakpoint fee schedule, the entire portfolio is charged the same asset
management fee. For example, a Client with $750,000 under management would pay $2,250
on a quarterly basis. $750,000 x .3000% = $2,250.
Typically, fees are non-negotiable; however, they may be negotiated if the client is part of a
group. Groups consist of four or more buying/investing units, which include families,
companies, corporations or pension plans. Fees are billed quarterly in advance based on the
amount of assets managed, including any cash balances, as of the close of business on the last
business day of the previous quarter. Lower fees for comparable services may be available
from other sources. Clients may terminate their account within five (5) business days of
signing the Investment Advisory Agreement with no fee and without penalty. After five days
of signing the agreement, Clients may terminate advisory services with thirty (30) days
written notice. For accounts opened or closed mid-billing period, unearned prepaid fees will
be refunded to the Client. Client shall be given thirty (30) days prior written notice of any
increase in fees. Any increase in fees will be acknowledged in writing by both parties before
any increase in said fees occurs.

Item 7: Types of Clients
Description
October Effect Ltd. provides investment advisory services primarily to individuals, high net
worth individuals, and qualified plans.
Client relationships vary in scope and length of service.

Account Minimums
There is a $10,000 minimum required to open and maintain an advisory account. This
minimum amount may be waived at the discretion of the firm.