San BLAS Advisory Inc

Item 5 – Fees and Compensation

SBAI will charge advisory fees based on the Assets Under Management of that account. The advisor and
client have discretion to negotiate a discount on advisory fees charged to the client. Accounts can be charged
quarterly or monthly in arrears or in advance, depending on what the client agrees to in their advisory
agreement. Fees will be deducted from the client’s account at the applicable correspondent firm. For billing
purposes, advisory fees will apply to all assets under management, including cash and cash equivalents. The
firm will refund prepaid advisory fees based on the value of the assets on the date of withdrawal for the pro
rata number of days remaining in the respective month or quarter depending on the billing cycle agreed
upon.

For billing occurring in advance fees will not be charged six months or more in advance and will not exceed
$1,200.

SBAI will receive compensation as a percentage of assets under management for referring the Client to the
respective program and its money managers. * SBAI has a conflict to recommend TPMs that generate more
revenue to SBAI, and that when using a TPM, the client will pay higher fees.

PORTFOLIO MANAGEMENT PROGRAMS
Charles Schwab

 Total Annualized fee charged to the client
                   Up to $1 Million                                           2.00%
              $1 Million up to $2 Million                                     1.75%
              $2 Million up to $5 Million                                     1.50%
             $5 Million up to $10 Million                                     1.25%
                  $10 Million and up                                          1.00%

Charles Schwab Transaction Fees:

 *Mutual Fund trades- $24.00 for household greater than $500,000 in total. If household is less than
 $500,000 transaction fee is $31.00. If client sets up electronic statement delivery transaction fee is
 $24.00;
 *Dimensional Fund Advisors-$9.99 for mutual fund trades;
 *Options $6.95 + $.75 per contract;
 *Fixed Income priced on an individual basis;
 *Portfolio Management Programs may have other flat fees or expenses such as wire or transfer charges and
 custodian fees or mutual funds expenses disclosed at account opening or in the prospectus and

Hourly Financial Planning and Consulting
The Client will be assessed a maximum fee of $200/hour. Fees for hourly financial planning and consulting
services are negotiable between the Client and SBAI and can be reduced per agreement between Client and
Advisor. Prior to providing any such services, the IAR of SBAI and Client must agree to the amount of
compensation negotiated, which will be stated in the Financial Planning Agreement.

A portion of the fee will be due and payable to SBAI upon completion of the services or monthly based on
the accrued number of hours spent to date on financial planning. The remaining portion are due upon
completion of the plan. Lower fees for comparable services may be found from other sources.

If the Client or Advisor wishes to terminate the relationship written notice shall be provided by the Client to
SBAI, or vice-versa. Said termination shall be effective immediately upon receipt of the termination notice
by the other party. A Client’s death shall not terminate the authority granted to SBAI hereunder until SBAI
has received actual notification of said death. The Client will not be eligible for the refund of fees earned by
SBAI as hourly financial planning and consultation is billed in arrears. The Client will be responsible for any
hourly fees accrued up to the date of termination.

 FINANCIAL PLANNING

 SBAI’s Financial Planning services will consist of creating and implementing financial plans for our clients.
 Our IARs through discussions and correspondence with their clients will get an understanding of their
 financial goals in order to implement a strategy that meets their objectives. Periodically the IARs will touch
 basis with their clients to determine if any changes have occurred that validate adjusting their plans. Each
 Financial Plan will consist of a contract specifying the fees and parameters of the agreement.

Comprehensive Financial Planning

 The purpose of comprehensive financial planning is to conduct a holistic review of the Client’s financial
 situation, goals, and risk so as to provide advice and recommendations on all aspects of the Client’s financial
 situation disclosed to SBAI.

 SBAI and IARs will thoroughly review all pertinent Client information, including condition, tax status, and
 cash flow concerns, discuss Client objectives and needs, assess risk tolerance, and mutually agree upon a set
 of assumptions. On the basis of this information, SBAI will provide Client with a customized written report
 all analyses and recommendations. The Client will be assessed a maximum fee of $15,000. The fee can be
 negotiated between the Client and SBAI. A portion of the fee will be payable upon execution of an agreement
 for services with the remaining amount due within 30 days of completion of the service. Lower fees for
 comparable services may be available from other sources.

Limited Financial Planning

 The purpose of Limited Financial Planning is to target particular area(s) of financial planning services
 desired by the Client (hereinafter referred to as “Specific Planning Services”). The financial planning
 activities of SBAI are not a holistic review of the Client’s financial situation, goals, and risk.

 SBAI will thoroughly review Client information, pertinent to specific planning services, including financial
 condition, tax status, and cash flow concerns, Client objectives and needs, assess risk tolerance, and mutually
 agree upon a set of assumptions as it pertains to specific planning services. On the basis of this information,
 SBAI’s assessment is not a holistic review of the Client’s financial situation, goals, and risk.
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Item 7 – Types of Clients

SBAI provides investment advisory services and investment advice to individuals, high net worth
individuals, and businesses. SBAI requires the applicable new account documents to open an account with
our firm. There is currently no minimum account size to open an account with our firm.