Verus Capital Partners LLC

ITEM 5 – FEES AND COMPENSATION

Financial Planning Fees

Financial planning fees may be charged as a fixed fee or on an hourly rate and are negotiable
depending upon the client’s unique needs. Financial planning fees are determined by the
follow factors:

      Fixed Fee

Under a fixed fee arrangement, all fees are agreed upon by the client and the IAR in advance
of services performed. The fee will be determined based on a variety of factors including
your net worth, the complexity of your financial situation, agreed upon deliverables and
whether or not you intend to implement any recommendations through Verus and our IARs.
The type of fee, and in the case of a fixed fee, the amount of the fee must be agreed upon
by you and Verus prior to signing the client agreement. A client can approximate their
ultimate fee amount based upon the scope of services and estimated time and resources
their services will require. The fee will be estimated by the advisor and fully explained to
the client prior to when the client signs the advisory agreement.

Specific factors that are considered when approximating a client’s fee are the individuals
involved in providing the service to the client. If services provided by CPAs, JDs, or other
professionals are needed, that will be a factor in determining the client’s fee. Based on the
advisor’s experience an approximation of the number of work hours and firm resources
required to deliver the service will be a factor in approximating the fee. A portion of the
fee will be payable upon signing the agreement. The remainder of the fee will be billed
upon completion of the service. Any work paid in advance will be completed within six
months of the date the fee was paid. Depending upon the agreed upon fee arrangement the
fee will either be deducted from client assets or billed directly to the client. The fixed fee
will not exceed $5,000.

      Hourly Fee

Under an hourly arrangement, your total cost for financial advisory services will be based
on the amount of time spent by our IAR and staff in developing the financial plan. This
includes time spent meeting with you, as well as the time spent analyzing your financial
objectives and evaluating and documenting alternative strategies. Also included is Para-
planner and administrative support staff’s time spent on your plan.

Our hourly rates are as follows:
Investment Advisor Representative: $500 per hour
Para-planner: $100 per hour
Administrative Support: $50 per hour

Depending upon the agreed upon fee arrangement the fee will either be deducted from client
assets or billed directly to the client. Hourly fees will be billed upon completion of the
service. At no time will the fees be based on or related to the performance of your funds or
investments.

      Termination of Financial Planning Services

Financial planning services terminate upon presentation of the plan. As a financial planning
client, you will have a period of five business days from the date of signing the financial
planning agreement to unconditionally rescind the agreement and receive a full refund of
all fees. Thereafter, you may terminate the financial planning agreement by providing us
with written notice. Upon termination, fees will be prorated to the date of termination and
any unearned portion of the fee will be refunded to you. After the initial five business days,
you are responsible for the prorated time and effort expended by our IAR prior to receipt
of the termination notice. We will provide you with a billing statement summarizing any
prorated refund or prorated charge due.

Consultation Fees

We generally charge an hourly fee of no more than $500/hour and/or fixed fee generally
within the range of $500 to $5,000, which may be negotiable in certain circumstances,
depending upon the level and scope of these services. Depending on the scope and level of
services provided that maximum fee would only be charged when justifiable. Most advisors
charge a fee that is less than $500/hour, but we believe that there are circumstances when
a maximum fee is warranted, and we will not charge these fees without the client’s prior
approval. The fee is negotiable based not on the complexity of the client’s service, but on
the potential for outside resources to be required to complete the service. Each client’s
services will vary, and thus outside parties such as CPAs, JDs, CFPs, and other specialists
may have to be called upon. Circumstances that require resources to be relied upon which
aren’t detailed in form ADV 2 will be the prominent considerations when negotiating a
consultation fee. The total number of hours will be estimated prior to the engagement and
the total estimated fees would be specified in our Consulting Agreement. Half of the total
amount of fees is due upon the execution of the Consulting Agreement and the remaining
is due upon execution of the consultation.

Our hourly rates are as follows:
Investment Advisor Representative: $500 per hour
Para-planner: $100 per hour
Administrative Support: $50 per hour

Depending upon the agreed upon fee arrangement the fee will either be deducted from client
assets of billed directly to the client.

      Termination of Consulting Services

Consultation services terminate upon presentation of the plan. Either party may terminate
the agreement at any time by providing written notice to the other party within five days of
signing agreement. You will incur charges for bona fide advisory services rendered to the

point of termination and such fees will be due and payable by you. After the initial five
business days, you are responsible for the prorated time and effort expended by the IAR
prior to receipt of the termination notice. We will provide you with a billing statement
summarizing any prorated refund or prorated charge due. Refunds will be given on a pro-
rata basis.

The fee-paying arrangements for hourly fees charges and/or fixed fees will be determined
...

ITEM 7 – TYPES OF CLIENTS
We provide investment advice to individuals, trusts, pension plans, and estates.

 We typically require a minimum of $250,000 for managed accounts. The IAR may waive
 this account minimum at his or her discretion.