SC Thomas & Associates CPA LLC

Item 5: Fees and Compensation

Please note, unless a Client has received this brochure either before or at the time of signing an Advisory
Contract, the Advisory Contract may be terminated by the Client within five (5) business days of signing the
Advisory Contract without penalty or incurring any fees.

How we are paid depends on the type of advisory services we perform. Below is a brief description of our
fees, however, you should review your executed Advisory Contract for more detailed information regarding
the exact fees you will be paying. No increase to the agreed-upon advisory fees outlined in the Advisory
Contract shall occur without prior Client consent.

Investment Management Services

The fee is based on a percentage of assets under management and is negotiable. The annualized fees for
investment management services are based on the following fee schedule:

                                      1% of assets under management

The annual advisory fee is paid quarterly in arrears based on the value of Client’s account(s) as of December
31 of the prior year. The annual fee is then divided into four equal quarterly payments and billed in arrears

during the following calendar year. For example, for assets under management of $2,000,000 as of December
31st, a Client would pay 1.00%. The formula for the quarterly fee is determined by the following calculation:
($2,000,000 x 1.00%) ÷ 4 = $5000.

In determining the advisory fee, we may allow accounts of members of the same household to be aggregated.
SCTA relies on the valuation as provided by Client’s custodian in determining assets under management. Our
advisory fee is prorated for any partial billing periods occurring during the engagement, including the initial
and terminating billing periods. Adjustments will be made to deposits and withdrawals during the billing
period.

Project-Based Financial Planning
We charge an hourly fee for Project-Based Financial Planning. Our hourly rate is $250. Fees are negotiable
and the final agreed upon fee will be outlined in your Advisory Contract. SCTA collects a portion of the fee to
be collected in advance with the remainder due upon completion of the services. SCTA will not bill an amount
above $1200 more than 6 months or more in advance of rendering the services.

Tax Preparation
We charge a fee of $250 for Tax Preparation. The fees may be negotiable in certain cases, will be agreed upon
at the start of the engagement, and are due at the completion of the engagement. Clients are not required to
utilize any third-party products or services that we may recommend.

Fee Payment

For Investment Management services, we deduct our advisory fee from one or more account(s) held at an
unaffiliated third-party custodian, as directed by the Client. Please refer to Item 15 of this Brochure regarding
our policy on direct fee deduction. Clients may also pay by check.

For Financial Planning services, fees are paid by check.

Other Types of Fees and Expenses

Our fees are exclusive of brokerage commissions, transaction fees, and other related costs and expenses
which may be incurred by the Client. Clients may incur certain charges imposed by custodians, brokers, and
other third parties such as 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 fund and exchange-traded funds also charge internal management fees, which are
disclosed in a fund's prospectus. Such charges, fees, and commissions are exclusive of and in addition to our
fee, and we shall not receive any portion of these commissions, fees, and costs.

Item 12 further describes the factors that we consider in selecting or recommending custodians for Client’s
transactions and determining the reasonableness of their compensation (e.g., commissions).

Clients may incur fees from third-party professionals such as accountants and attorneys that SCTA may
recommend, upon Client request. Such fees are separate and distinct from SCTA’s advisory fees.

Terminations and Refunds

For Investment Management services, the Advisory Contract may be terminated with written notice 30
calendar days in advance. Since fees are paid in arrears, no refund will be needed upon termination of the
Advisory Contract. Clients will be responsible for payment of fees up to the date of termination.

For Project-Based Financial Planning services, this service is not an ongoing engagement, thus upon receipt
of the final fees, the Advisory Contract will automatically be terminated. Clients may terminate at any time
provided written notice. If fees are paid in advance, a prorated refund will be given, if applicable, upon
termination of the Advisory Contract for any unearned fee. For fees paid in arrears, Client shall be charged a
pro-rata fee based upon the percentage of the work done up to the date of termination.

Sale of Securities or Other Investment Products

Advisor and its supervised persons do not accept compensation for the sale of securities or other investment
products including asset-based sales charges or service fees from the sale of mutual funds.

Item 7: Types of Clients
We provide financial planning and investment management services to individuals, high net-worth individuals,
banking and corporations or other businesses.

In general, we require a minimum asset level of $500,000 to establish an investment advisory relationship.
This minimum account size may be waived at the Firm’s discretion.