Townsend Financial Planning LLC

Item 5 - Fees and Compensation
Types of Agreements – The following agreements define the typical Client relationships and associated fees:

Townsend Financial Planning, LLC reserves the right (but is not obligated) to assess a lower fee to those
Clients who had engaged the Firm prior to September 21, 2016, in addition to associates’ and related persons’
accounts maintained by the Firm through its selected custodian.

Wealth Management and Investment Management–
   o Clients with manageable assets of less than $750,000 receive Investment Management.
       Clients with manageable assets greater than $750,000 will receive Investment Management,
       Financial Planning and Relationship Management for one bundled asset-based fee. Generally,
       the fee structure is as follows:

 Account Asset Value                     Annualized      Financial       Relationship
                                         Asset-          Planning        Management
                                         Based Fee
 First $750,000                              1.00%            No                  No
 Between $750,001 and $2 million             1.00%            Yes                 Yes
 Next $2 million                             0.50%            Yes                 Yes
 Thereafter                                  0.25%            Yes                 Yes

The Firm’s fees are negotiable at the discretion of the Firm President. The amount of this fee is based
on several factors including the size of the account, services rendered, amount of time expended and
other account management considerations. The Firm, at its sole discretion, may allow "householding",
which utilizes the combination of various accounts within a household or across multiple households
to calculate the Account Asset Value and determine the Clients’ Annualized Asset-Based Fee. If it is
mutually agreed that the factors/services warrant an increase in the fee schedule outlined above, the
maximum annual fee that will be charged is 2.00%. The fee schedule as well as services provided
would be fully outlined in the Wealth Management Agreement and signed by both the Client and Firm
President.

Assets are invested primarily in no-load mutual funds and exchange-traded funds, usually through
discount brokers or fund companies. Stocks and bonds may also be purchased or sold through a
brokerage account when appropriate.

Brokerage firms charge brokerage commissions and/or transaction fees for certain securities trades.
These brokerage commissions and transaction fees will be assessed in accordance with the relevant
brokerage firm’s brokerage commission and transaction fee schedule. TFP does not receive any
compensation, in any form, from fund or brokerage companies.

Existing investments in Client accounts may also include equities (stocks), warrants, corporate debt
securities, commercial paper, certificates of deposit, municipal securities, investment company
securities (variable life insurance, variable annuities, and mutual funds shares), U. S. government
securities, options contracts, futures contracts, interests in partnerships and various executive long-
term incentive plans. Initial public offerings (IPOs) are not available through TFP.

Billing Cycle and Fee Assessments – Fees are billed quarterly in arrears during each advisory billing
cycle. A new account’s first billing cycle may occur once the agreement is executed, and accounts are
funded. For partial periods under our management, the Client’s account(s) will be assessed a pro-rated
fee. Clients whose agreements with the firm predate the current revision of this brochure may have
alternative billing arrangements which will continue to be honored until a new agreement has been
signed.

As specified in the Client’s agreement with the Firm, as amended, the Firm’s fees may be assessed
based on either the value of the account assets at the end of the relevant fee period or on the average
daily balance of the account during the relevant fee period. For fees based on the period end value,
such fees may be adjusted for account deposits and withdrawals made during the fee period. Clients
are advised to consult their agreements with the Firm, including any amendments, for their applicable
fee arrangement.

Fee payments will generally be assessed within ten (10) business days following each billing period.
For those accounts held by Client's selected brokerage firm or custodian that the Firm does not
maintain an agreement, Clients will be directly billed, and fees will be due immediately upon receipt of
the Firm’s invoice. Our Asset-Based fee is determined by taking the percentage rate we charge divided
by four times the average daily balance of the account. The average daily balance is the sum of the

average daily value of all assets in the account, not adjusted by any margin debit. The fee is then
rounded to the nearest whole dollar. This fee shall be assessed on a quarterly basis and paid in
Arrears.

For purposes of determining the value of assets upon which the Firm’s fee is based, the asset value,
securities and other instruments traded on a market for which actual transaction prices are publicly
reported will be valued at the last reported sale price on the principal market in which they are traded.
If there are no sales on such date, then they will be determined by the mean between the closing bid
and asked price on such date. Other readily marketable securities will be valued using a pricing service
or through quotations from one or more dealers. In the absence of a market value, TFP may seek an
independent third-party opinion or through a good faith determination by a qualified Firm associate.

The applicable Wealth/Investment Management Services fees referenced include all fees and charges
for the services of the Firm and its investment adviser representatives. The Client will be required to
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Item 7 - Types of Clients
Description - TFP generally provides investment advice and financial planning to individuals, pension and
profit-sharing plans, trusts, estates, or small business entities.

Client relationships vary in scope and length of service. The Firm does not require minimum income levels,
dollar value of assets or other conditions for its financial planning and investment consultation services.