Watts Capital Partners LLC

Item 5: Fees and Compensation

5A. Fee Schedule

Financial Planning Fees

Watts Capital offers Financial Planning services for an annual Financial Planning Fee,
which is billed quarterly in advance. The Financial Planning Fee is determined as a
percentage of the Client’s net worth and the complexity of services to be provided. In

special situations, the Firm may undertake a limited financial planning services for a
fixed fee.

While Financial Planning services are provided with the intention of the Client
implementing plan recommendations through Watts Capital, Clients are not obligated
to do so. If a Client elects to have an associated person of the Firm implement the advice
provided as part of the Financial Planning services, implementation will be made
consistent with the terms outlined in this brochure. When implementing Financial
Planning services, the Client may incur fees and expenses in addition to the planning
fees described above.

For each Financial Planning assignment, Watts Capital takes step to define the
relationship between the Firm and the Client. This includes defining the scope of
services to be provided, how the Firm is compensated, and any sources of additional
compensation. The Client and the Firm discuss each of their expectations regarding the
roles they will have during the Financial Planning process. They also agree on how
decisions will be made. The agreement discusses the duration of the relationship and
any provision for assignment termination.

Wealth Management Fees and Investment Management/Advisor Fees

Watts Capital charges for Wealth Management Services based on Assets Under
Management (AUM) for each household. The Firm’s fee schedule is set out in the table
below.

                Total Household Assets
                                                       Annual Fee Rate
                 Under Management
                     $0 - $2,000,000                        1.00%
                $2,000,0001 - $5,000,000                    0.85%
                $5,000,001 - $10,000,000                    0.70%
                   Over $10,000,000                         0.60%

The Firm also charges for Assets Under Advisory (AUA) where the Firm provides input
on investment selection but does not manage the assets directly. Investment Advisory
Fees are charged at an annual fee rate of 0.50%.

The Firm charges incremental fees for assets deployed in Tactical Investment Strategies as
follows:

Industry Innovator Strategy                    1.50% per year
Tactical Growth Strategies                     1.50% per year

The Firm also may receive separate compensation for specific Alternative Investment Strategies,
which are disclosed to clients on a case-by-case basis.

These fees are negotiable and the final fee schedule is attached as an exhibit to each
Client’s Investment Advisory Agreement. Fees are paid quarterly in advance, based on
the AUM or AUA as of the last day of the previous period.

For Investment Management/Advisory Services, fees vary by strategy. These are
disclosed with the authorization by the Client to engage these services.

B. Payment of Fees

Payment of Fees

Financial Planning Fees are paid directly by the Client. Wealth Management and
Investment Management/Advisory fees are withdrawn directly from the Client’s
accounts with Client written authorization.

C. Clients Are Responsible For Third Party Fees

Clients are responsible for the payment of all third-party fees (i.e. custodian fees, mutual
fund fees, transaction fees, etc.). Those fees are separate and distinct from the fees and
expenses charged by the Firm. Please see Item 12 of this brochure regarding
broker/custodian.

D. Prepayment of Fees

The Firm requires payment of Fees quarterly in advance.

E. Outside Compensation For the Sale of Securities to Clients

    Watts Capital and its supervised persons may accept compensation for the sale of
    securities or other investment products, including asset-based sales charges or services
    fees from the sale of securities or other investments to its Clients. This presents a conflict
    of interest and gives the supervised person and the Firm an incentive to recommend
    products based on the compensation received rather than on the Client’s needs. When
    recommending the sale of securities or investment products for which Watts Capital
    receives compensation, the Firm will document the conflict of interest in the Client file
    and inform the Client of the conflict of interest.

Item 7: Types of Clients

      Watts Capital generally provides management supervisory services to the following types of
      Clients:

                     •   Business Owners
                     •   Enterprises & Institutions
                     •   GenX/Gen Y Professionals
                     •   Individuals and Couples Contemplating and Navigating Divorce
                     •   Individuals and Families Planning their Lifetime Financial Goals
                     •   Individuals and Families Undertaking Charitable and Legacy Planning

      Minimum Account Size

      There is an account minimum, $1,000,000, which may be waived by the investment advisor,
      based on the needs of the Client and the complexity of the situation.