Prato Capital Management Inc

ITEM 5 – FEES AND COMPENSATION
FINANCIAL PLANNING AND CONSULTING SERVICES
Our financial planning services are provided on a fixed or hourly fee basis in accordance with the
following fee schedule:
Fixed Fee: The fixed fee range is between $1,500 and $10,000. The fixed fee range varies and
depends upon the nature and complexity of each client’s individual circumstances and the
number of topics covered by the service.
Hourly Fee: The hourly rate will not exceed $500 per hour with a minimum of two hours per
engagement. The hourly rate will vary depending on the nature and complexity of each client’s
individual circumstances and the number of topics covered by the service.
The financial planning fee may be negotiated or waived at our discretion. At the time of
engagement, we provide the client with a written estimate of the total fee. We collect one half
of the agreed upon fee at the time of engagement and the remaining half upon delivery of the
financial plan or consulting service.
PORTFOLIO MANAGEMENT SERVICES
Our management fee is based on a percentage of assets under management , including the assets
purchased on margin, in the client’s account. The annual management fee is no more than 2.00%.
The management fee is negotiable based on the size of the account. The client may aggregate
or household accounts to negotiate a lower fee.
Our management fee is billed quarterly, in advance. This means we collect the management fee
at the beginning of the quarterly billing period. The management fee will be based on the
custodian’s reported account value as of the last business day of the prior quarter. The
management fee is not adjusted for deposits or withdrawals during the billing period. Accounts
established during a calendar quarter will be charged a prorated management fee. The fee will
be deducted from the client’s account. Cash balances and investments in money market funds or
certificates of deposit held in the account are counted toward the account value and are included
in the management fee calculations.
RETIREMENT PLAN CONSULTING
Our retirement plan consulting services are billed as a flat fee or a percentage of plan assets. The
total fee is negotiable based on the services provided to the client. Our flat fee varies, but can be

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up to $60,000. Our fees based on a percentage of assets in the qualified retirement plan will not
exceed 2.00%. We will negotiate with the client how often and when the fee is collected. The
fee may be collected monthly or quarterly, in arrears or in advance. The fee will be either billed
to the plan sponsor or deducted from the plan’s assets.
OTHER FEES AND EXPENSES
For our non-wrap fee client accounts, our fees do not include brokerage commissions,
transaction fees, or other related costs and expenses. Clients may incur certain charges imposed
by custodians, brokers, and other third parties such as fees charged by managers, custodial fees,
deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund
fees, and other fees and taxes on brokerage accounts and securities transactions. Mutual funds
and exchange traded funds also charge internal management fees, which are disclosed in a fund’s
prospectus. These charges, fees and commissions are exclusive of and in addition to our fee, and
we will not receive any portion of these commissions, fees, and costs. For more information
about our brokerage practice please see Item 12.A.
Wrap clients do not incur transaction costs for trades. For information about fees for our Wrap
Program, please see Item 4: Services, Fees, & Compensation in our Wrap Fee Program Brochure.
TERMINATION OF SERVICES
The client may terminate any service for any reason within the first five (5) business days after
signing an advisory contract and receive a 100% refund of any fees paid, without any cost or
penalty.
For our financial planning and consulting clients, after the first five (5) business days, the financial
planning agreement may be terminated at any time by either party through written notice to the
other party. Upon our receipt of a written termination notice, hourly financial planning clients
will receive a prorated refund of any unearned fees based on the number of hours completed on
the plan or consulting services. Flat fee financial planning clients will receive a prorated refund
of any unearned fees based on the percentage of work completed on the plan.
For our portfolio management services, after the first five (5) business days, either party may
terminate the portfolio management agreement by giving the other party ten (10) days’ written
notice of termination. Because we charge in advance, the client will receive a prorated refund of
unearned fees for termination prior to a quarter end. Refunds are paid by depositing the
prorated portion of the fee back into the account, if allowed by the client’s custodian. In all other
cases refunds are paid by check.
For retirement plan consulting services, After the first five (5) business days, either party may
terminate the retirement plan consulting agreement by providing the other party 30 days’
written notice. Clients will be charged for advisory services provided up to the point of
termination (determined as 30 days from receipt of the written notice of termination) and the
fees for those advisory services will be due and payable.

RETIREMENT ROLLOVER CONFLICTS OF INTEREST
When we recommend you rollover a retirement account for us to manage, this creates a financial

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incentive because we charge a fee for our services. We attempt to mitigate the conflict of interest
by acting in your best interest and applying an impartial conduct standard to all rollovers. Please
...

ITEM 7 – TYPES OF CLIENTS
We offer our services to individuals, high net worth individuals, corporations or other business
entities, ERISA Plans, and pension and profit sharing plans. We do not require a minimum account
size.