The Financial Advisors LLC

Item 5 – Fees and Compensation

The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into one or
more agreements with the Advisor.

                                               The Financial Advisors, LLC
                                           26 Essex Street, Andover, MA 01810
                                        Phone: (978) 475-3242 * Fax: (888) 974-0397

                                              www.the-financial-advisors.com

A. Fees for Advisory Services
Wealth Management Advisory Services
Wealth management fees are paid quarterly, at the end of each calendar quarter, pursuant to the terms of the
advisory agreement. Wealth management fees are based on the following schedule:

                  Assets Under Management ($)                      Annual Rate (%)
                  First $1,000,000                                     1.00%
                  Next $1,000,000 (Up to
                                                                         0.80%
                  $2,000,000)
                  Next $1,000,000 (Up to
                                                                         0.60%
                  $3,000,000)
                  Above $3,000,000                                       0.20%

Advisory fees are based on the average daily balance of the account[s] during the quarter. Fees may be
negotiable at the sole discretion of the Advisor. Certain accounts may be held under a legacy fee arrangement as
documented within the Client’s Agreement. All securities held in accounts managed by TFA will be independently
valued by the Custodian. The Advisor will conduct periodic reviews of the Custodian’s valuation to ensure
accurate billing.

Financial Planning Services
TFA additionally offers standalone financial planning services either on an hourly basis or for a fixed annual fee.
The fee for a financial plan is predicated upon the facts known at the start of the engagement. Initial and renewal
year’s financial planning services are offered for a fixed annual fee.

TFA’s hourly rate ranges from $150 to $300 per hour. Fixed engagement fees are based on the hourly rate for
the Advisory Person involved, times the anticipated number of hours required for the plan. Fixed fees range from
$1,000 to $10,000. Fees may be higher for certain complex engagements.

Financial planning fees are not negotiable. However, the Client is always the primary determiner of the scope
and number of hours of financial planning needed. An estimate for total hours and total costs will be provided to
the Client prior to engaging for these services. In the event that the Client’s situation is substantially different than
disclosed at the initial meeting, a revised fee will be provided for mutual agreement. The Client must approve the
change of scope in advance of the additional work being performed when a fee increase is necessary.

Fixed fee engagements allow the Client access to the Advisor during the term of the engagement. Consultations
after the completion of the planning process are usually by telephone or email. TFA will provide hourly planning
services for Clients who need advice for a limited scope of work. Hourly charges are the actual number of hours
for each advisor and staff person times the negotiated hourly rate. Hourly fees are due at the time of the
consultation.

TFA, at its discretion, may charge a different fee based on several factors, including: the complexity of the
services to be provided and the overall relationship with the Advisor.

Retirement Plan Advisory Services
Fees for retirement plan advisory services are charged an annual asset-based fee of up to 1.00% and are billed
in arrears, pursuant to the terms of the retirement plan advisory agreement. Retirement plan advisory fees are
based on the market value of assets under management at the end of the calendar quarter. Fees may be
negotiable depending on the size and complexity of the Plan.

B. Fee Billing
Wealth Management Advisory Services
Wealth management fees are calculated based upon the market value of the assets as measured by the average
daily balance during the quarter. The fees are generally deducted from a designated Client account to facilitate
                                               The Financial Advisors, LLC
                                           26 Essex Street, Andover, MA 01810
                                        Phone: (978) 475-3242 * Fax: (888) 974-0397

                                              www.the-financial-advisors.com

billing. Clients provide written authorization permitting advisory fees to be deducted by TFA directly from their
account[s] held by the Custodian as part of the advisory agreement.

Financial Planning Services
For project-based engagements, financial planning fees are generally due in full at the time of the engagement,
unless otherwise directed by the Advisor. Fixed fee and annual retainer engagements typically require an
advance deposit of up to 50% of the expected cost of the engagement prior to commencing services. For fixed
project-based engagements, the balance shall be due upon the completion of the engagement deliverables. For
annual/ongoing retainer engagements, the Advisor will establish a progress billing schedule with one or more
additional payments required during the annual period. TFA will not accept advance payment of $1,200 or more
for any services or portion thereof that will not be completed in less than six months.

Retirement Plan Advisory Services
TFA is compensated for its services at the end of the quarter after advisory services are rendered. Retirement
plan advisory fees may be directly invoiced to the Plan Sponsor or deducted from the assets of the Plan,
depending on the terms of the retirement plan advisory agreement.

C. Other Fees and Expenses
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Item 7 – Types of Clients
TFA offers wealth management services to individuals, trusts, estates, charitable organizations, businesses and
retirement plans. The amount of each type of Client is available on the Advisor's Form ADV Part 1A. These
amounts may change over time and are updated at least annually by the Advisor. TFA generally requires a
minimum size for establishing a relationship of $50,000, which may be reduced at the sole discretion of the
Advisor. Accounts of less than $50,000 may be set up when the Client and the Advisor anticipate the Client will
add additional funds to the accounts within a reasonable time. Other exceptions will apply to employees of TFA
and their relatives, or relatives of existing Clients. Client relationships vary in scope and length of service.