AEM Asset Management LLC

Item 5 Fees and Compensation
Portfolio Management Services
Our annual fee for portfolio management services is negotiable depending on your specific facts and
circumstances but will not exceed 1.75% of the market value of your assets under our management.
Assets in each of your account(s) are included in the fee assessment unless specifically identified in
writing for exclusion.

Depending on the arrangements made at the inception of the engagement, we may in our sole
discretion agree to bill a flat fee rather than a percentage of your assets under our management.

Our annual portfolio management fee is billed and payable, quarterly in arrears, based on the balance
at end of billing period.

If the portfolio management agreement is executed at any time other than the first day of a calendar
quarter, our fees will apply on a pro rata basis, which means that the advisory fee is payable in
proportion to the number of days in the quarter for which you are a client.

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 you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in your paying a reduced negotiated
advisory fee percentage.

Depending on the arrangements made at the inception of the engagement, we will either send you an
invoice for the payment of our advisory fee, or we will deduct our fee directly from your account
through the qualified custodian holding your funds and securities. We will deduct our advisory fee only
when you have given our firm written authorization permitting the fees to be paid directly from your
account. Further, the qualified custodian will deliver an account statement to you at least quarterly.
These account statements will show all disbursements from your account. You should review all
statements for accuracy.

We encourage you to reconcile the statement(s) you receive from the qualified custodian. If you find
any inconsistent information in the statement(s) you receive from the qualified custodian call our main
office number located on the cover page of this brochure.

You may terminate the portfolio management agreement upon written notice. You will incur a pro rata
charge for services rendered prior to the termination of the portfolio management agreement, which
means you will incur advisory fees only in proportion to the number of days in the quarter for which you
are a client. If you have pre-paid advisory fees that we have not yet earned, you will receive a prorated
refund of those fees.

Financial Planning Services
We charge a fixed fee for financial planning services, which generally ranges between $250.00 -
$1,000.00 . The fee is negotiable depending upon the complexity and scope of the plan, your financial
situation, and your objectives. We do not require you to pay fees six or more months in advance.
Should the engagement last longer than six months between acceptance of financial planning
agreement and delivery of the financial plan, any prepaid unearned fees will be promptly returned to
you less a pro rata charge for bona fide financial planning services rendered to date.

Depending on the arrangements made at the inception of the engagement, we may alternatively agree
to an hourly fee of which ranges between $100 and $300 depending on the scope and complexity of
the plan, your situation, and your financial objectives. An estimate of the total time/cost will be
determined at the start of the advisory relationship. In limited circumstances, the cost/time could
potentially exceed the initial estimate. In such cases, we will notify you and request that you approve
the additional fee prior to additional services being rendered.

We also offer advice on single subject financial planning/general consulting services at the same
hourly rate.

We will not require prepayment of a fee more than six months in advance and in excess of $1,200.

At our discretion, we may offset our financial planning fees to the extent you implement the financial
plan through our Portfolio Management Service.

Our financial planning fees are negotiable and payable on completion of the contracted services.

You may terminate the financial planning agreement upon written notice to our firm. If you have pre-
paid financial planning fees that we have not yet earned, you will receive a prorated refund of those
fees. If financial planning fees are payable in arrears, you will be responsible for a prorated fee based
on services performed prior to termination of the financial planning agreement.

Selection of Other Advisers
We do not charge you a separate fee for the selection of other advisers. We will share in the advisory
fee you pay directly to the TPMM. The advisory fee you pay to the TPMM is established and payable in
accordance with the brochure provided by each TPMM to whom you are referred. These fees may or

may not be negotiable. Our compensation may differ depending upon the individual agreement we
have with each TPMM. As such, a conflict of interest exists where our firm or persons associated with
our firm has an incentive to recommend one TPMM over another TPMM with whom we have more
favorable compensation arrangements or other advisory programs offered by TPMMs with whom we
have less or no compensation arrangements.

You may be required to sign an agreement directly with the recommended TPMM(s). You may
terminate your advisory relationship with the TPMM according to the terms of your agreement with the
TPMM. You should review each TPMM's brochure for specific information on how you may terminate
your advisory relationship with the TPMM and how you may receive a refund, if applicable. You should
contact the TPMM directly for questions regarding your advisory agreement with the TPMM.

Additional Fees and Expenses
...

Item 7 Types of Clients
We offer investment advisory services to individuals (including high net worth individuals), charitable
organizations and corporations or other businesses not listed above.

In general, we do not require a minimum dollar amount to open and maintain an advisory account;
however, we have the right to terminate your account if it falls below a minimum size which, in our sole
opinion, is too small to manage effectively.