Stonehearth Capital Management LLC

Item 5 Fees and Compensation
Investment Management Services
Fees are negotiable under certain circumstances (e.g., friends, family members, and employees of the
Advisor) and are subject to change. Fees are not based on a share of capital gains upon or capital
appreciation of the funds or any portion of the funds.

Advisory fees will be charged quarterly in advance based on the market value of the account assets as
of the close of business on the last day of the preceding quarter.

If the management of an account commences at any time other than the beginning of a calendar
quarter, the initial quarterly fee shall be charged in arrears. The initial quarterly fee will be based on the
initial account balance and will be pro-rated based on the number of days during the quarter when the
agreement was in effect.

The Client may make additions to the account or withdrawals from the account, provided the account
continues to meet minimum account size requirements. No fee adjustments will be made for additions
or withdrawals from the account or for account appreciation or depreciation.

Advisory fees for the wrap fee/non-wrap fee programs and alternative investments are in accordance
with the following fee schedule:

                                 Account Size                      Annual Fee
                                First $250,000                        1.25%
                                Next $750,000                         1.00%
                               Next $2,000,000                        0.75%
                               Next $2,000,000                        0.50%
                                   Ongoing                            0.25%

The Advisor may change the above fee schedule upon 30-days prior written notice to the Client.

Advisory fees are based on the aggregate value of all managed accounts within the established
household. The value of the portfolio will include, but is not limited to, assets under the management of
the Advisor held at Schwab as well as those assets under the Advisor's management held at other
financial institutions (outside accounts). It is the Advisor's policy to charge half of the advisory fee on
529 plan account(s).

If the Advisor's Advisory Representative recommends the purchase of non-publicly traded REITs,
Limited Partnerships or other private investment offerings, the position(s) will be included in the
calculation of the advisory fee. Since these investments are managed by a non-affiliated investment
manager, the Client will pay an advisory fee to the non-affiliated investment manager in addition to the
advisory fee charged by the Advisor. Certain Clients may hold non-publicly traded REITs or Limited
Partnerships in their portfolios, for which Advisory Representative received a commission. In these
situations, the position(s) will be excluded from the advisory fee calculation until the asset either
liquidates, merges or goes public. At that time, the position(s) will be included in the fee calculation.
Also, some stock positions that are held at the Client's request will be excluded or discounted for fee
calculation purposes unless we are offering recommendations or analysis on the stock, in which case
we will include the fair market value in the calculation of our management fee.

Depending upon the circumstances, the Advisor may combine Client accounts from one household
with Client accounts from other households to aggregate account values for fee calculations. The
annual fee may then be based on an aggregate value of all accounts within the combined households.

Advisory fees will be deducted directly from the Client's account(s) with Schwab, provided the Client
has given the Advisor written authorization. The Client will be provided with an account statement
reflecting the deduction of the advisory fee. If the account does not contain sufficient funds to pay
advisory fees, the Advisor has limited authority to sell or redeem securities in sufficient amounts to pay
advisory fees. The Client may reimburse the account for advisory fees paid to the Advisor, except for
ERISA and IRA accounts.

For outside accounts held at other financial institutions (besides Schwab) that are under the Advisor's
management, the advisory fee will be deducted directly from that outside account when available. If
unavailable, then the advisory fee will be deducted from a single designated account at Schwab
chosen by the Advisor. If the Client does not have a Schwab account, the Advisor will invoice the
Client quarterly in advance.

A wrap fee program offers advisory services and brokerage services for a single fee. The fee may be
higher or lower if the Client was to obtain these services separately. If the Client is eligible for
participation in the Advisor's wrap fee program, the Client will not pay separate ticket charges and
execution fees or account maintenance fees on those assets held at Schwab. The Client should read
the wrap fee program disclosure brochure (Part 2A Appendix 1) for additional disclosures.

Clients participating in the Advisor's wrap fee or non-wrap fee program with assets managed by the
Advisor but not custodied at Schwab (i.e., outside accounts), will be subject to such fees if assessed.

Ticket Charges: Schwab charges ticket charges for each trade placed on their platform. These
charges, which typically range from $0.00 to $10.00, are paid by the Client unless the Client qualifies
for the Advisor's wrap fee program.

Wrap Fee Program Qualifications:

    • Have $1,000,000 (cash or securities) or more of assets on which the Advisor or its Advisory

      Representatives receive any form of compensation, AND
    • Maintain an account at Schwab.

The $1,000,000 of assets can be comprised of accounts held at Schwab along with other financial
institutions ("outside accounts") such as mutual fund companies, 529 college savings plan providers,
...

Item 7 Types of Clients
The Advisor's services are geared toward individuals and their families including high net worth
individuals, trusts, estates, as well as corporations and other business entities.

The Advisor generally requires a minimum amount of assets be deposited to an account for the
purpose of obtaining investment management services. The Advisor will generally require the Client to
deposit a minimum of $500,000 (cash or securities). However, under certain circumstances, the
Advisor may waive the minimum account size requirement and accept accounts less than $500,000.
Such circumstances may include but not be limited to additional assets will soon be deposited, family
members of existing Clients, or the Client has other accounts under management with the Advisor. The
Client is advised that performance may suffer due to difficulties with diversifying smaller accounts and
due to risk controls potentially being compromised. Performance of smaller accounts may vary from
the performance of accounts with more dollars invested since fluctuations in the market may have a
greater effect on a less diversified portfolio.