Stratos Wealth Partners Ltd

ITEM 5: Fees and Compensation

The advisory fees payable upon initial implementation are collected directly from the account (provided
the client has given SWP written authorization for SWP to deduct the fees directly from the account).
Advisory fees for all subsequent periods will be collected directly from the account, provided authorization
was obtained. Clients will be provided with an account statement from the account custodian, reflecting
the deduction of the advisory fee. If the account does not contain sufficient funds to pay advisory fees,
SWP 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 SWP, except for ERISA and IRA accounts.

Fees are negotiable and are not based on a share of capital gains/losses upon or capital
appreciation/depreciation of the funds or any portion of the funds.

Most SWP IARs charge an ongoing asset-based fee which is a percentage of the value of the client’s account.
The more assets a client has in an asset-based fee account, the more the client will pay the SWP IAR in
fees. This creates an incentive for the IAR to encourage clients to increase the size of their account,
including by transferring or rolling over assets from other accounts.

Additionally, in limited cases, the client’s managed accounts may be aggregated together to determine a fee
breakpoint. Therefore, clients with multiple managed accounts will be charged a fee considering the
account values in total. In these cases, and when available, it is a benefit to the client to have an IAR that
aggregates accounts. Alternatively, some IARs may charge a corresponding fee based on each account size.
Therefore, clients with multiple accounts may pay a different fee depending on the account size.

The maximum annual advisory fee is 2.0% for SWM and other advisor-managed non-wrap accounts.

In limited cases, SWP may apply a flat fee to provide asset management services. The maximum flat fee
will be no more than 2.0% of the assets under management. Details regarding billing can be found in the
client agreement for the applicable accounts. Clients should understand that this may create a conflict of
interest, as SWP’s and the IAR’s compensation does not increase or decrease along with the client’s
account value.

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Transaction Charges:

In addition to the advisory fees above, clients with non-wrap fee accounts will pay a transaction charge
for each transaction. Transaction charges are not assessed by SWP and SWP does not share in the
transaction charges. The transaction charges are assessed by the broker-dealer executing the transaction
and may be changed at any time by the broker-dealer. The following list of fees or expenses are what
clients pay directly to third parties, whether a security is being purchased, sold or held in an account under
SWP management. Fees are charged by the broker-dealer/custodian.

Clients who custody their account at LPL financial will typically pay higher transaction fees and higher
fees for structured products than they would at other custodians such as Fidelity or Schwab.

SWP does not receive, directly or indirectly, any of these fees charged to the client. They are paid to the
broker, custodian or the mutual fund or other investment that is held. The fees include, among others:

        •   Accounts holding Alternative Investments will be charged an annual custodial fee per
            position per account per year
        •   Brokerage commissions
        •   Transaction fees
        •   Exchange fees
        •   SEC fees
        •   Advisory fees and administrative fees charged by mutual funds/ ETFs
        •   Advisory fees charged by subadvisors (if any are used for your account)
        •   Custodial fees
        •   Trade-away fees
        •   Deferred sales charges (on mutual funds or annuities)
        •   Odd-Lot differentials
        •   Transfer taxes
        •   Wire transfer and electronic fund processing fees
        •   Commissions or mark-ups/mark-downs on security transactions

Ticket Charges

There are conflicts of interest to consider in connection with the selection of mutual funds and a specific
transaction cost commonly known as ticket charge associated with each mutual fund transaction.

As background, custodians often make available mutual funds that offer various classes of shares. Some
share classes of a fund charge higher internal expenses, whereas other share classes of a fund charge lower
internal expenses. Institutional and advisory share classes (collectively, “institutional shares” or
“institutional share classes”) typically have lower expense ratios and are less costly for a client to hold
than Class A shares or other share classes that are eligible for purchase in an advisory account. In some
instances, a mutual fund offers only Class A shares, but another similar mutual fund may be available that
offers institutional shares.

Whether a mutual fund or a specific share class of a mutual fund incurs a ticket charge often depends on
whether the mutual fund or the mutual fund share class has 12b-1 fees (fees paid by the mutual fund to
distributors of the funds to cover the cost of distribution and/or shareholder services). For instance, where
a mutual fund or mutual fund share class has 12b-1 fees can correlate with no ticket charge. Additional
fees that could have an impact on whether a mutual fund or mutual fund share class has a ticket charge or
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not also include recordkeeping fees to the custodian. Mutual funds and mutual fund share classes with no
ticket fees (which can be described as NTF shares) usually have higher fees and expense ratios, and the
...

ITEM 7: Types of Clients

SWP provides services to a variety of clients:

       •    Individuals
       •    Trusts, estates and charitable organizations
       •    Corporations or other business entities
       •    Governmental plans, municipalities
       •    Not for profit entities
       •    Bank or thrift institutions
       •    Retirement plans

The account minimums for both SWM and other advisor-managed, non-wrap fee accounts is $10,000;
however, in certain circumstances, the minimum account size may be lower.

Please see Item 4 for account minimums for other account types on LPL, Fidelity, Schwab, and SIMC
platforms.

SWP does not require a minimum asset amount for financial planning or hourly consulting.

For TPIAs, the TPIA sponsor typically establishes a minimum account value, which will be set forth in
the account opening documents with the TPIA sponsor.