Wealthstar Advisors LLC

Item 5: Fees and Compensation

A. Methods of Compensation and Fee Schedule

 A.1. Portfolio Management Fees
WSA offers its portfolio management services solely on a wrap fee basis. For details on these
services, including fees, please refer to Appendix 1: WealthStar Advisors, LLC, Wrap Fee Program
Brochure.

 A.2. Fees for Annuity and 401(k) Plan Participant Advisory Services
WSA’s fee for monitoring the mutual fund sub-accounts of annuities and 401(k) plan participant
advisory services is an asset-based fee calculated as a percentage of the value of the managed
assets, according to the following fee schedule, which represents the advisor’s maximum fees for
individual services. These fees are negotiable.

                 Total Assets Under Management                    Annual Fee Rate

                   All Assets Under Management                          1.50%

Asset-based fees are always subject to the investment advisory agreement between the client and
WSA. Such fees are payable monthly in advance. Fees will not be prorated if the investment

             Appendix 1 of Part 2A: WealthStar Advisors, LLC, Wrap Fee Program Brochure

advisory relationship commences otherwise than at the beginning of a calendar month.
Adjustments for contributions or withdrawals to a client’s portfolio will not be prorated for the
month in which the change occurs.

The client authorizes the qualified custodian to automatically deduct the fee and all other charges
payable hereunder from the assets in the account when due, with such payments to be reflected
on the next account statement sent to the client. If insufficient cash is available to pay such fees,
the fees will be rejected and carried over to the following month to be paid when there is sufficient
cash in the account. In this instance, account values will not be reduced by the rejected fee
amount and will result in the client paying higher fees in subsequent months.

In certain circumstances the custodian may restrict a client account for reasons such as an
incorrect address, abandoned account, potential fraud, etc. In the event the custodian restricts an
account, the fees will be rejected and carried over to the following month to be paid when the
restriction(s) is removed. In this instance, account values will not be reduced by the rejected fee
amount and will result in the client paying higher fees in subsequent months.
To the extent the client has a non-qualified account with the firm, WSA will receive authorization
to deduct the fee for the 401(k) and/or annuity advisory services from that account. If the client
does not have another account with the firm, WSA will send an invoice to the plan participant
and/or annuity owner monthly in advance.
A client may request “no service” at any time in writing or by email effective within 30 days stating
the specific accounts they wish to have removed from firm management. Once the firm receives
the request they will promptly be removed as an authorized advisor on the accounts and no
prorated or full fee refunds will be processed. If a client transfers accounts away from the firm
but does not request “no service”, the firm will continue to monitor assets still under management
and continue to fee bill until the accounts are closed. The client has the right to terminate an
agreement without penalty within five business days after entering into the agreement.

 A.3. Financial Planning Fees

   A.3.a. Fixed Fee Arrangements

Depending upon the complexity of the situation and the needs of the client, the fixed fee rate for
creating client financial plans is between $400 and $12,000. Fees are paid monthly in advance, but
never more than six months in advance.
Fixed fees are negotiable, and the final fee schedule will be attached as Exhibit A of the Financial
Planning Agreement. Clients may terminate their contracts without penalty within five business
days of signing the contract.

   A.3.b. Hourly Arrangements

Depending upon the complexity of the situation and the needs of the client, the hourly fee rate
for financial planning services is between $100 and $350. Hourly arrangements will be billed
monthly in arrears.

             Appendix 1 of Part 2A: WealthStar Advisors, LLC, Wrap Fee Program Brochure

Hourly fees are negotiable, and the final fee schedule will be attached as Exhibit A of the Financial
Planning Agreement. Clients may terminate their contracts without penalty within five business
days of signing the contract.

B. Client Payment of Fees

 B.1. 401(k) Plan Participant Advisory Services Fees
To the extent the client has another account with the firm, WSA will receive authorization to
deduct the fee for the 401(k) advisory services from that non-qualified account.
If the client does not have another account with the firm, WSA will send an invoice to the plan
participant monthly in advance.
WSA generally requires clients to authorize the direct debit of fees from their accounts. Exceptions
may be granted subject to the firm’s consent for clients to be billed directly for our fees. For
directly debited fees, the custodian’s periodic statements will show each fee deduction from the
account. Clients may withdraw this authorization for direct billing of these fees at any time by
notifying us or their custodian in writing.
WSA will deduct its advisory fees directly from the client’s account provided that (i) the client
provides written authorization to the qualified custodian, and (ii) the qualified custodian sends
the client a statement, at least quarterly, indicating all amounts disbursed from the account. The
client is responsible for verifying the accuracy of the fee calculation, as the client’s custodian will
not verify the calculation.

 B.2. Financial Planning Fees

   B.2.a. Fixed Fee Arrangements

Fixed financial planning fees will be billed monthly in advance. If a fixed fee Wealth Management
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Item 7: Types of Clients

WSA generally provides investment advice and/or management supervisory services to the
following types of clients:
   ▪   Individuals
   ▪   High-net-worth individuals
   ▪   Small business owners

Our firm does not impose requirements for opening and maintaining accounts or otherwise
engaging us.