Scratch Capital LLC

Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
 ASSET MANAGEMENT
 Scratch Capital offers discretionary direct asset management services to advisory Clients.
 Scratch Capital charges an annual investment advisory fee based on the total assets under
 management as follows:

                    Assets Under Management                     Annual Fee
                 First $1,000,000 ($0-$1,000,000)                 1.00%
                        Your next $1,500,000                      0.80%
                   ($1,000,000.01 - $2,500,000)
                        Your next $2,500,000                      0.70%
                   ($2,500,000.01 - $5,000,000)
                        Your next $5,000,000                      0.60%
                  ($5,000,000.01 - $10,000,000)
                       Your next $20,000,000                      0.40%
                 $10,000,000.01 - $30,000,000.00
                        Subsequent amounts                        0.25%
                         ($30,000,000.01+)
This is a tiered/blended fee schedule, the asset management fee is calculated by applying
different rates to different portions of the portfolio. Scratch Capital may group certain
related Client accounts for the purposes of achieving the minimum account size and
determining the annualized fee. Fees are calculated as follows for each fee tier outlined
above: Tier value x [(Number of days in the month/365) x annual fee rate] = monthly fee.
For example (31 day month):
Client with $2,500,000 under management would pay $1,868.46 on a monthly basis.
                                Number of Days       Annual Fee
                  AUM                                                        Total
                                 in Month/365          Rate
            First $1,000,000    x (.08493            x 1.0%)        $849.30
            Next $1,500,000     x (.08493            x 0.80%)       $1,019.16
            Grand total for the month                               $1,868.46

The annual fee is negotiable based upon certain criteria (e.g., historical relationship, type of
assets, anticipated future earning capacity, anticipated future additional assets, dollar
amounts of assets to be managed, related accounts, account composition, negotiations with
Clients, etc.). For clients with assets of $480,000 or greater, financial planning services are
included with asset management services.
Fees are billed monthly in advance based on the amount of assets managed as of the close
of business on the last business day of the previous month, and if applicable the agreed
upon planning fee. For accounts open mid-month, billing will be charged in arrears based
on the end of the initial month value.
Scratch Capital may also utilize the services of a Sub-Advisor to manage Clients’ investment
portfolios by executing a Sub-Advisor agreement with other registered investment advisor
firms. When using Sub-Advisors, the client will pay additional fees depending on the
account value, investment style and types of securities used. The sub-advisor fees will be
disclosed to and acknowledged by the client in Scratch Capital’s Investment Advisory
Agreement. The sub-advisor’s fees and the custodian’s fees are not included in the fees
charged by Scratch Capital. Sub-Advisor directly deducts their portion of the fee separately
from Scratch Capital. For accounts with Dimensional Fund Advisors LP (‘Dimensional’),

Dimensional will pull their fees quarterly in arrears based on the average daily value of the
account assets.
Lower fees for comparable services may be available from other sources. Clients may
terminate their account within five (5) business days of signing the Investment Advisory
Agreement with no obligation and without penalty. After the initial five (5) business days,
the agreement may be terminated by Scratch Capital with thirty (30) days written notice to
Client and by the Client at any time with written notice to Scratch Capital. For accounts
opened or closed mid-billing period, fees will be prorated based on the days services are
provided during the given period. All unpaid earned fees will be due to Scratch Capital.
Additionally, all unearned fees will be refunded to the Client. Client shall be given thirty
(30) days prior written notice of any increase in fees. Any increase in fees will be
acknowledged in writing by both parties before any increase in said fees occurs.
ASSET HELD AWAY
Scratch Capital offers discretionary direct asset management services to advisory Clients.
Scratch Capital charges an annual investment advisory fee based on the total assets under
management as follows:
                    Assets Under Management                    Annual Fee
                         First $1,000,000                        1.00%
                         ($0-$1,000,000)
                       Your next $1,500,000                      0.80%
                   ($1,000,000.01 - $2,500,000)
                       Your next $2,500,000                      0.70%
                   ($2,500,000.01 - $5,000,000)
                       Your next $5,000,000                      0.60%
                  ($5,000,000.01 - $10,000,000)
                      Your next $20,000,000                      0.40%
                 $10,000,000.01 - $30,000,000.00
                       Subsequent amounts                        0.25%
                        ($30,000,000.01+)
This is a tiered/blended fee schedule, the asset management fee is calculated by applying
different rates to different portions of the portfolio. Scratch Capital may group certain
related Client accounts for the purposes of achieving the minimum account size and
determining the annualized fee. Fees are calculated as follows for each fee tier outlined
above: Tier value x [(Number of days in the month/365) x annual fee rate] = monthly fee.
For example (31 day month):
Client with $2,500,000 under management would pay $1,868.46 on a monthly basis.
...

Item 7: Types of Clients
Description
 Scratch Capital generally provides investment advice to individuals and high net worth
 individuals. Client relationships vary in scope and length of service.
Account Minimums
 Scratch Capital does not require a minimum to open an account.