Principia Wealth Advisory LLC

ITEM 5: FEES AND COMPENSATION
 The following paragraphs detail the fee structure and compensation methodology for services provided by PWA.
 Each Client engaging PWA for services described herein shall be required to enter into a written agreement with
 PWA.
 A.        Advisory Service Fees

Investment Advisory Fees

PWA manages client accounts on a discretionary basis, with a limited authority to make trades and deduct advisory
fees. Advisory fees are calculated based on assets under management according to the following tiered schedule:

                            Assets Under Management              Annual Advisory Fee
                                   $0 - $499,999                       1.20%
                               $500,000 - $749,999                     1.10%
                               $750,000 - $999,999                     1.00%
                             $1,000,000 - $2,999,999                   0.85%
                             $3,000,000 - $4,999,999                   0.75%
                             $5,000,000 - $9,999,999                   0.60%
                                   $10,000,000+                        0.50%

Advisory fees are calculated and paid monthly in advance. Exceptions may be made to the published fee schedule
under certain circumstances pursuant to a negotiated agreement with the client. In the event that the client
terminates PWA’s services before the end of a billing period, the client shall be assessed a pro‐rata fee based on
the number of days the client’s account was managed by PWA and will have the remainder of the prepaid fees
promptly refunded.
Unless PWA agrees otherwise, in writing, PWA shall debit the account directly for its advisory fee. In the event of
termination, PWA shall refund any unearned portion of the advanced fee paid based upon the number of days
remaining in the billing month. For existing clients, PWA’s policy is to treat intra‐month account additions and
withdrawals equally by adjusting our fee for intra‐month additions and withdrawals to managed accounts unless
indicated to the contrary on PWA’s Investment Advisory Agreement executed by the client.

Financial Planning/Financial Consulting Fees

PWA offers financial planning and financial consulting services on an hourly basis for $250 per hour, which rate
may be negotiable depending on the nature and complexity of the client’s circumstances. There is a minimum
1‐hour charge for hourly services. For client engagements billed on an hourly basis, PWA will provide the client
with an estimate of total projected hours at the outset of the engagement.

For financial planning engagements, PWA may also charge a negotiable initial fee and monthly retainer fee for
the initial year of service generally within the range of $1,200 ‐ $6,000, the exact amount of which is dependent
upon the level and scope of services. The initial fee is payable in full at the outset of the engagement. The monthly
retainer shall be paid on the first of each month. After the initial year of service, PWA will continue to charge the
monthly retainer fee in the range of $25 ‐ $400 for each additional month of service under the engagement.

Pension Consulting Fees

PWA’s annual fees for pension consulting services provided under this Agreement shall be billed based on the
market value of the account for the previous month and is payable monthly in advance and shall generally be
calculated according to the fee schedule below.

                              Assets Under Management               Annual Consulting Fee
                                    Up to $1,000,000                        0.10%
                                $1,000,001 to $5,000,000                   0.075%
                               $5,000,001 to $20,000,000                    0.05%
                              $20,000,001 to $100,000,000                  0.025%
                                   Over $100,000,000                        0.02%

The fee for investment management will be based on the market value of the account for the previous month
and is payable monthly in advance. The first advisory fee will be assessed on pro‐rata basis taking into account
the time for which the account was not managed by PWA and the time left in the month.

Fees will be automatically deducted from the account. Clients will be provided with at least a quarterly
statement reflecting deduction of the advisory fee as well as an advance invoice from PWA detailing the
amount and calculation of the advisory fee.

B.      Payment of Fees
Unless the client requests direct billing, investment advisory fees and pension investment management fees, if
applicable, will be automatically deducted from the account(s) designated by the client with written client
authorization. Client accounts are billed on or around the first business day of each month according to the value
on the last day of the preceding month.

It is important to note that it is the client’s responsibility to verify the accuracy of the fee calculation. The client’s
account custodian will not determine whether the fee is properly calculated.

For fixed fee financial planning, the initial fee is due and payable on the date of the executed financial planning
agreement with the monthly retainer beginning on the first business day of the following month, unless the
agreement is executed on the first business day of a month in which case the first monthly retainer would be
billed at the same time as the initial fee.

For hourly fee planning/consulting, one half of the total estimated fixed and hourly fees (or a specified amount
agreed by both PWA and the client) are due and payable at the time the client’s agreement is executed, and the
remainder of the fees are due upon presentation of a plan or the rendering of consulting services.

In the event that a client cancels a financial planning or financial consulting agreement, the client shall be billed
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ITEM 7: TYPES OF CLIENTS
 PWA provides our services to:

          Individuals, including high net worth individuals
          Trusts, estates and charitable organizations
          Pension and profit sharing plans
          Corporations or other business entities
          Not for Profits

 Account Minimums

 We generally require a $250,000 investable asset minimum for the management of accounts. Fees and account
 sizes are subject to negotiation and accounts that are less than $250,000 will be evaluated on a case‐by‐case basis.
 In addition, we reserve the right to refuse to accept proposed management responsibilities or to resign from the
 management of any individual account in accordance with the terms of the signed Investment Advisory Agreement
 between PWA and the Client.