Prosperity Road LLC

Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into one or more
agreements with the Advisor.

                                                   Prosperity Road, LLC
                                   12341 Newport Avenue, Ste. A-100, Santa Ana, CA 92705
                                         Phone: (714) 241-0212 Fax: (714) 241-0213
                                                 http://prosperityroadllc.com

A. Fees for Advisory Services
Wealth Management Services
Investment advisory fees are paid quarterly, in advance of each calendar quarter, pursuant to the terms of the
investment advisory agreement. Investment advisory fees are based on the market value of assets under
management at the end of the prior calendar quarter.

Investment advisory fees are based on the following schedule:

                                      Assets Under Management                           Annual Rate
                                   Up to $999,999                                         1.25%
                                   $1,000,000 to $1,999,999                               1.00%
                                   $2,000,000 to $2,999,999                               0.90%
                                   $3,000,000 to $4,999,999                               0.80%
                                   $5,000,000 to $7,499,999                               0.70%
                                   $7,500,000 to $9,999,999                               0.60%
                                   $10,000,000 to $14,999,999                             0.50%
                                   $15,000,000 to $19,999,999                             0.45%
                                   $20,000,000 to $24,999,999                             0.40%
                                   $25,000,000 to $49,999,999                             0.35%
                                   $50,000,000 and Over                                   0.30%
                 * The Advisor imposes a minimum fee of $4,500, which can be waived at the sole discretion of the Advisor.

The investment advisory fee in the first quarter of service is prorated from the inception date of the account[s] to the
end of the first quarter. Fees may be negotiable at the sole discretion of the Advisor. The Client’s fees will take into
consideration the aggregate assets under management with the Advisor. All securities held in accounts managed
by Prosperity Road will be independently valued by the designated Custodian. Prosperity Road will conduct
periodic reviews of the Custodian’s valuations to ensure accurate billing. Prosperity Road may utilize pricing from a
Custodian, other than a Client’s primary Custodian for various reporting purposes.

The Advisor’s fee is exclusive of, and in addition to, any applicable securities transaction and custody fees, and
other related costs and expenses described in Item 5C. below, which may be incurred by the Client. However, the
Advisor shall not receive any portion of these commissions, fees, and costs.

Use of Independent Managers
Fees for Clients participating in an Investment Platform are included in Prosperity Road’s investment advisory fee
as noted above.

Financial Planning Services
Prosperity Road offers financial planning services either on an hourly basis or for a fixed fee. Hourly fees range
from $350 to $450. Fixed fees are based on the expected number of hours to complete the engagement at the
negotiated hourly rate. Fees may be negotiable based on the nature and complexity of the services to be provided
and the overall relationship with the Advisor. An estimate for total hours and/or total costs will be provided to the
Client prior to engaging for these services.

The Advisor imposes a minimum fee of $4,500, which can be waived at the sole discretion of the Advisor.

Retirement Plan Advisory Services
Retirement plan advisory fees are paid quarterly, in advance of each calendar quarter, pursuant to the terms of the
retirement plan advisory agreement. Retirement plan advisory fees are based on the market value of assets under
management at the end of the prior calendar quarter. Fees may be negotiable depending on the size and
complexity of the Plan. Prosperity Road will pay BSP service a fee, based on management fees paid to the
Advisor, the retirement plan advisory fees are based on the fee schedule:

                                                      Prosperity Road, LLC
                                      12341 Newport Avenue, Ste. A-100, Santa Ana, CA 92705
                                            Phone: (714) 241-0212 Fax: (714) 241-0213
                                                    http://prosperityroadllc.com

  Assets Under Management             BSP’s Annual Fee          Prosperity Road’s Annual Fee            Total Fee
    On the first $1,000,000                  0.20%                            0.70%                       0.90%
    On the next $4,000,000                   0.15%                            0.45%                       0.60%
    On the next $5,000,000                  0.075%                            0.25%                      0.325%
         Over $10,000,000                    0.05%                            0.15%                       0.20%
            The Advisor imposes a minimum fee of $4,500 which can be waived at the sole discretion of the Advisor.

B. Fee Billing
Wealth Management Services
Investment advisory fees are calculated by the Advisor or its delegate and deducted from the Client’s account[s] at
the Custodian. The Advisor or its delegate shall send an invoice to the Custodian indicating the amount of the fees
to be deducted from the Client’s account[s] at the respective quarter end date. The amount due is calculated by
...

Item 7 – Types of Clients
Prosperity Road offers investment advisory services individuals, high net worth individuals, trusts, estates,
retirement plans, charitable organizations, and corporations. The amount of each type of Client is available on
Prosperity Road’s Form ADV Part 1. These amounts may change over time and are updated at least annually by
the Advisor. Prosperity Road generally requires a minimum account size of $500,000 to effectively implement its
                                                   Prosperity Road, LLC
                                   12341 Newport Avenue, Ste. A-100, Santa Ana, CA 92705
                                         Phone: (714) 241-0212 Fax: (714) 241-0213
                                                 http://prosperityroadllc.com

investment process. For Clients that do not meet the minimum account size, the Advisor generally imposes an
annual minimum fee.

Prosperity Road also has a separate minimum account size of $400,000 that is generally required for
management services of individual fixed income securities. These minimum account sizes and minimum fees
may be negotiable at the sole discretion of the Advisor depending on certain circumstances.