We don’t charge you any fees

unless you have

positive returns or outperform the benchmark.

Asset Management (Including Performance-Based Fees):

“You” refers to you, the client, and “UI”, “we” or “us” refers to Unlock Investments.

Unlock Investments’ (UI’s) fees are charged monthly in arrears and are based on account performance relative to two criteria: a) whether returns were positive or negative for the month; and b) whether the accounts exceeded or failed to exceed the relevant benchmark. The benchmark in question is a 50/50 combination of the S&P 500 and NASDAQ indices as measured by Charles Schwab.

No fees will be charged if returns were negative for the month and your account failed to exceed the benchmark.

If the returns for the month are negative but your account exceeded the benchmark, a management fee of 0.10% will be charged at the end of the month but no performance fee.

If the returns for the month are positive but your account did not exceed the benchmark, a management fee of 0.10% AND a performance fee of 15% will be assessed at the end of the month.

If the returns for the month are positive and your account also exceeded the benchmark, a management fee of 0.10% AND a performance fee of 25% will be assessed at the end of the month.

For the elimination of doubt, it should be noted that the management fee will be based on the average daily value of the account for the month while the performance fees will be based on the difference between the ending and beginning monthly account value. The management fee is 1.2% per year (0.1% when charged in a given month).

An additional performance fee can be earned annually based on an annual high-water mark. If, at the anniversary of your account being opened, the account value is at an all time high, the difference between the previous high value v. the current account value will result in a performance fee of 25% being assessed on the differential of those two account values.

Due to regulatory requirements, performance-based fees can only be charged to “qualified clients”. A qualified client is defined as a client that has over $1.1 million investment with us, OR a net worth of at least $2.2 million, excluding primary residence (this standard is subject to revision every 5 years based on indexing for inflation as outlined in the Dodd Frank Act).

UI has the sole discretion to negotiate fees that are lower than the standard fee shown or to waive fees. Comparable services for lower fees may be available from other sources. Fees for the initial month will be prorated based upon the number of calendar days in the calendar month that the advisory agreement is in effect. Fees are based on the market value of the assets on the last business day of the month.

As authorized in the client agreement, the account custodian withdraws UI’s advisory fees directly from the clients’ accounts according to the custodian’s policies, practices, and procedures. The custodial statement includes the amount of any fees paid to UI for advisory services. You should carefully review the statement from your custodian/broker-dealer’s statement and verify the calculation of fees. Your custodian/broker-dealer does not verify the accuracy of fee calculations.

Normally, fees are charged in arrears on a monthly basis, meaning that advisory fees for a month are charged on the first day of the following month. The one exception to this would be cases where a high watermark performance fee is earned, which would be paid annually at the anniversary date of the account being opened. Clients may terminate investment advisory services obtained from UI, without penalty, upon written notice within five (5) business days after entering into the advisory agreement with UI. The client is responsible for any fees and charges incurred by the client from third parties as a result of maintaining the account such as transaction fees for any securities transactions executed and account maintenance or custodial fees. Thereafter, the client may terminate advisory services upon written notice delivered to and received by UI. Clients who terminate investment advisory services during a month are charged a prorated advisory fee based on the date of UI’s receipt of client’s written notice to terminate. Any earned but unpaid fees are immediately due and payable; as asset management fees are billed in arrears, there will never be any prepaid and unearned asset management fees.

Management fees will be based on the average daily value of the account for the month while the performance fees will be based on the difference between the ending and beginning monthly account value. The management fee is 1.2% per year (0.1% when charged in a given month).

Additional Fees and Expenses

In addition to advisory fees paid to UI as explained above, clients may pay custodial service, account maintenance, transaction, and other fees associated with maintaining the account. These fees vary by broker and/or custodian. Clients should ask UI for details on transaction fees or other custodial fees specific to their account, as these fees are not included in the annual advisory fee. UI does not share any portion of such fees. Additionally, for any mutual funds purchased, the client may pay their proportionate share of the funds’ distribution, internal management, investment advisory and administrative fees. Such fees are not shared with UI and are compensation to the fund manager. Clients are urged to read the mutual fund prospectus prior to investing.

Mutual fund companies impose internal fees and expenses on clients. These fees are in addition to the costs associated with the investment advisory services as described above. Complete details of such internal expenses are specified and disclosed in each mutual fund company’s prospectus. Clients are strongly advised to review the prospectus(es) prior to investing in such securities.

Mutual funds purchased or sold in broker-dealer accounts may generate transaction fees that would not exist if the purchase or sale were made directly with the mutual fund company. Mutual funds held in broker-dealer accounts also charge management fees. These mutual fund management fees may be more or less than the mutual fund management fees charged if the client held the mutual fund directly with the mutual fund company.

Clients may purchase shares of mutual funds directly from the mutual fund issuer, its principal underwriter, or a distributor without purchasing the services of UI or paying the advisory fee on such shares (but subject to any applicable sales charges). Certain mutual funds are offered to the public without a sales charge. In the case of mutual funds offered with a sales charge, the prevailing sales charge (as described in the mutual fund prospectus) may be more or less than the applicable advisory fee. However, clients would not receive UI’s assistance in developing an investment strategy, selecting securities, monitoring performance of the account, and making changes as necessary.

Disclosures

Unlock Investments LLC (UI) is a California-registered investment adviser. UI may only transact business in states where it is registered or exempt or excluded from registration. Information presented is for educational purposes only and is not intended to make an offer or solicitation for the sale or purchase of any securities. Past performance is not indicative of future results. Investments, including options trading, involve the risk of losing part or all of your investment, and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here.

This correspondence is for informational purposes only and not intended to provide specific investment advice. Unlock Investments may only provide specific investment advice in states where it is registered or exempt from registration. The performance results noted in the report are from Sean Gurson’s personal trading account, and do not reflect the performance of actual client accounts. Securities investments involve a risk of loss of part or all of your investment. Past performance is not indicative of future performance.

Our investment strategy involves the use of equity stocks, stock options, and digital currency investments (such as Bitcoin), which all may be speculative in nature and involve a risk of loss of principal. Returns reflect reinvested capital gains and dividends but not the deduction of taxes an investor would pay.

The blended benchmark is comprised of indices, which are unmanaged, have no deductions for fees, sales or other charges and expenses, and cannot be invested in directly. Benchmark performance is not indicative of the performance of any security. Positions in the strategy are materially different from the blended benchmark presented in that they have different holdings and different levels of risk.

The indices that comprise the blended benchmark do not engage in the trading of options. Options involve risk and are not suitable for all investors. We believe the sources of our information, which may come from third-party service providers, to be reliable, however, the accuracy and completeness of the information is not guaranteed.