Scarborough Advisors LLC

ITEM 5 FEES AND COMPENSATION

PORTFOLIO MANAGEMENT FEES
Scarborough’s Portfolio Management Service is charged an asset-based fee. This means that the account is
charged a percentage of the value of cash and investment in the account for advisory services. This fee is
negotiable and paid in advance on a quarterly basis. The advisory fee is debited directly from your advisory
account (which means that the account value is reduced by the fee). The custodian debits the fee and remits
the payment to Scarborough. This arrangement is agreed upon with the client in the asset management
contract prior to the onset of service. Initially, when the portfolio is first established, the fee will be prorated
based upon the number of calendar days remaining in the quarter. After this, the fee will be assessed quarterly
based on the value of the account on the last trading day of the previous calendar quarter. Fees are negotiable
and are not based on a share of capital gains or capital appreciation of the funds or any portion of the funds.
The maximum allowable annual fee is 2.50%. Either Scarborough or the client may terminate this advisory
relationship at any time by providing written notification to the other. In such a circumstance, the quarterly fee
will be prorated based on the number of calendar days the account was open during the current quarter and
the client will be refunded any prepaid, unearned fees.
Scarborough’s asset-based fee schedules are a “cliff” or “breakpoint” fee schedule, which means that all client
assets under our management are charged the same corresponding annual fee percentage based on the total
client assets designated to be under firm management, unless specifically agreed to otherwise in writing.
Example: a client’s investment advisory contract with Scarborough has a tiered asset-based fee schedule
where the first $250,000 is charged 1.25%, the second $250,000 is charged 1.15%, and assets between
$500,000 and $1,000,000 are charged 1.00%. If the client has $750,000 in total assets under management, all
assets under management will be charged a 1% asset-based management fee, unless an alternative billing
methodology is agreed to in writing.
Mutual fund companies, ETFs, and variable annuity issuers charge internal fees and expenses for their
products. These fees and expenses typically include management fees, operating expenses (e.g., custodial
fees, legal fees, transfer agent expenses, trading expenses, marketing and distribution fees and other
administrative costs) and certain shareholder fees (e.g., redemption fees, exchange fees, account fees and
purchase fees). These fees are in addition to the management fee that we charge you. Complete details of
these internal fees and expenses are explained in the prospectus related to each investment. You are strongly

encouraged to read the prospectus related to any of these investments before investing any money. You can
ask us any questions you have about any associated fees and expenses.
If you purchase mutual funds through the custodian/broker-dealer, you could pay a transaction fee (typically
$15) that would not be charged if the transactions were made directly with the mutual fund company. Also,
mutual funds held in accounts at brokerage firms may be subject to internal fees that are different from funds
held directly with the mutual fund company.
While you can purchase shares of mutual funds directly from the mutual fund company without a transaction
fee, those investments would not be part of our advisory relationship with you. This means that they would not
be included in our investment strategies, investment performance monitoring, or portfolio reallocations.
The selected custodians for this service (Schwab and Fidelity), charges commission rates, if applicable, that
are generally considered discounted from customary retail commission rates.
FINANCIAL PLANNING SERVICE FEES
Fees for financial planning services are negotiable and typically range from $0 to $2,500. The fee is disclosed
and agreed upon with the client by signing the Financial Consulting Services Agreement prior to the onset of
service. The fee depends upon the nature of the client relationship and the financial planning topics to be
included in the financial plan. In some cases, a good faith deposit may be required. In such a case, the
remaining balance is due upon delivery of the financial plan. Alternatively, the full fee will be due within 30 days
of client receipt of the written financial plan. Either Scarborough advisors or the client may terminate this
consultative relationship at any time by providing written notification to the others. Client will be responsible
for any time spent by Scarborough in providing the client financial planning services and/or analyzing the
client’s situation. Any prepaid, unearned fees will be refunded to Client.

Financial Planning Fee Offset: Scarborough reserves the discretion to reduce or waive the hourly fee, the
minimum fixed fee, or the remaining balance of an existing contract if a financial planning client chooses to
engage us for our Portfolio Management Services.
CONSULTATION SERVICE FEES
Consultation fees are negotiable but are typically based on an hourly rate ranging from $250 - $500 per hour or
a flat rate to be determined on a case-by-case basis. Regardless if the fee is assessed at an hourly rate or as a
flat fee, the rate will be defined in the Financial Consulting Services Agreement that will be endorsed by both
parties prior to the onset of service. Depending upon the scope of the service provided, a retainer may be
required. Otherwise, the client will be billed upon completion of the project. Either Scarborough advisors or the
client may terminate this consultative relationship at any time by providing written notification to the other.
Client will be responsible for any time spent by Scarborough providing the consultative services, but any
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ITEM 7 TYPES OF CLIENTS

Scarborough Capital Management offers and/or provides advisory services to the following types of clients:
   •   Individuals (other than high net worth individuals)
   •   High net worth individuals
   •   Corporations or other businesses not listed above.