Abel Financial Management Co

Item 5 Fees and Compensation
Financial Management Services
All Clients receiving comprehensive financial management services are required to sign a financial management
agreement with our firm. The agreement defines the nature of the services we provide and details the fees
charged for those services. Our fee for comprehensive financial management service that includes both,
investment management and financial planning is calculated based on the fair market value (“FMV”) of the
portfolio assets we agree to manage for you. Financial management fees are based on the following schedule:

                 Assets Under Management ($)                   Annual Rate (%)
                           Up to $200,000                         *Minimum fee
                       $200,001 to $500,000                          1.25%
                       $500,001 to $750,000                          1.15%
                      $750,001 to $1,000,000                         1.10%
                     $1,000,001 to $2,000,000                        1.00%
                     $2,000,001 to $3,000,000                        0.90%
                     $3,000,001 to $4,000,000                        0.80%
                     $4,000,001 to $5,000,000                        0.70%
                        $5,000,001 and Over                        Negotiable
                *Minimum fee of $2,500 for Clients with less than $200,000 under management

Financial management fees are paid quarterly, in advance of each calendar quarter, pursuant to the terms of the
financial management agreement. The financial management fee in the first quarter of service is prorated from the
inception date of the account[s] to the end of the first quarter. Fees may be negotiable at our discretion. The Client’s

fees will take into consideration the aggregate assets under management with us. All securities held in accounts
managed by us will be independently valued by the Custodian. We will conduct periodic reviews of the Custodian’s
valuations.

Financial management fees are calculated by us or a delegate and deducted from the Client’s account[s] at the
Custodian. We shall send an invoice to the Custodian indicating the amount of the fees to be deducted from the
Client’s account[s] at the beginning of the respective quarter. The amount due is calculated by applying the
quarterly rate (annual rate divided by 4) to the total assets under management with us at the end of the prior
quarter. Clients are provided with a statement, at least quarterly, from the Custodian reflecting deduction of the
financial management fee (as well as a separate independent investment management fee for accounts allocated
to a Congress model portfolio – see below Use of Independent Managers). Clients are urged to review the
brokerage statement from the Custodian, as the Custodian does not perform a verification of fees. Clients provide
written authorization permitting advisory fees to be deducted by us to be paid directly from their account[s] held by
the Custodian as part of the investment advisory agreement and separate account forms provided by the
Custodian.

Either party may terminate the financial management agreement, at any time, by providing advance written notice to
the other party. The Client may also terminate the financial management agreement within five (5) business days of
signing financial management agreement at no cost to the Client. After the five-day period, the Client will incur
charges for bona fide advisory services rendered to the point of termination and such fees will be due and payable
by the Client. Any pre-paid financial management fees will be refunded to the Client. The Client’s financial
management agreement with us is non-transferable without either party’s prior consent.

Use of Independent Managers
As noted in Item 4, we may implement all or a portion of a Client’s investment portfolio utilizing one or more
Independent Managers. To eliminate any conflict of interest, we do not earn any compensation from an
Independent Manager. We will only earn our financial management fee as described above. The total blended
fee, including the Advisor’s fee and the Independent Manager’s fee, will not exceed 2.00% annually.

For Client accounts implemented through an Independent Manager, the Client’s overall fees will include our
financial management fee (as noted above) plus investment management fees and/or platform fees charged by
the Independent Manager. The Independent Manager will assume the responsibility for calculating the Client’s
fees and deducting all fees from the Client’s account[s].

In the event that we determine that an Independent Manager is no longer in your best interest, we will have the
discretion to terminate the relationship with the Independent Manager. The terms for termination are set forth in
the respective agreements between us and the Independent Managers.

Investment Consulting Fees
We may provide a separate and independent service for investment management and consulting only.

Financial Consulting Fees
We may also provide a separate and independent service for financial consulting only, not to include investment
management services. For a one time only consulting meeting, there is a minimum fee of $1,500 due and
payable upon execution of the financial planning agreement. If, after the initial meeting, the Client decides to
continue with our financial consulting only services, we will provide the Client with a separate consulting
agreement which will detail the services to be provided, and our fees for those services, which will not exceed
$10,000 annually. We do not collect advance fees of $1,200 or more for services to be performed six months or
more in the future.

You are advised of the potential total cost at the onset of the engagement. Fees are invoiced and due upon
execution of the financial planning agreement. You may terminate the engagement at any time, with two-weeks
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Item 7 Types of Clients
We offer advisory services to individuals, high net worth individuals, corporations, families, and employers who
provide financial planning services to their employees as a fringe benefit. At our discretion, we may combine the
account values of family members living in the same household to determine the applicable advisory fee. For
example, we may combine account values for Clients’ and their minor children, joint accounts with a spouse, and
other types of related accounts. Combining account values increases the total assets under management, and
therefore would result in a reduced advisory fee percentage based on the available breakpoints in our fee
schedule stated above.

We generally do not impose a minimum relationship size; however, we do impose a minimum fee of $2,500
which can be waived at our sole discretion. Additionally, certain Independent Managers may impose a minimum
fee as well. The overall fee will not exceed 3.00% of assets under management per year.