Arbor Wealth Management LLC

Item 5: Fees and Compensation

 Fee Schedule

Lower fees for comparable services may be available from other sources.

Portfolio Management Services Fees

Custom Management

*Offered to Aggressive Risk Tolerance or Higher and / or Legacy Accounts and certain
tax positions at AWM’s discretion.

             Total Assets Under Management                Maximum Annual Fee
                  $0.00 - $2,500,000.00                           1.00%

             $2,500,001.00 to $5,000,000.00                       0.75%

                     $5,000,001.00 +                              0.65%

ETF Models

*Models may have other constituents based on tax positions or client requests at
AWM’s discretion.

             Total Assets Under Management                Maximum Annual Fee
                  $0.00 - $2,500,000.00                           0.85%

             $2,500,001.00 - $5,000,000.00                        0.50%

                     $5,000,001.00 +                              0.40%

For ETF services AWM will create, manage, and monitor a fully ETF portfolio account. This is
still monitored daily and re-balanced as necessary according to goals and risk tolerance.

AWM calculates the balance in the client’s account on the last market day of the quarter for
purposes of determining the market value of the assets upon which the advisory fee is based. These
fees are negotiable, and the final fee schedule is attached as Exhibit II of the Investment Advisory
Contract. The fees are negotiable based on competition in the industry, family, friends, households,
and referrals. AWM has the discretion to accept a negotiated rate when bringing on a new client or
reviewing a current client. Clients may terminate the agreement without penalty, for full refund of
AWM’s fees, within five business days of AWM signing the Investment Advisory Contract.

Financial Planning Fees

At AWM it is our goal to have a complete understanding of our client’s financial goals
and risk tolerance.

AWM charges an hourly rate of $250 for the client’s initial financial plan. This total cost is
determined by the complexity of the financial plan and is determined by the estimated hours of
completion times the hourly rate. The final fee is disclosed in the Financial Planning Agreement in
Exhibit V. This planning fee will be earned at the plan delivery meeting and/or uploaded to the
client portal. Clients may terminate the agreement without penalty AND for full refund of AWM’s
fees, within five business days of signing the Financial Planning Agreement. Thereafter, clients
may terminate the Financial Planning Agreement generally with thirty day’s written notice.

At the start of the first anniversary and annually thereafter, AWM charges a $1,000 fee for Financial
Plan updates. This planning fee will be earned upon an updated plan being uploaded to the client
portal. This fee is disclosed in the Financial Planning Agreement in Exhibit V. Clients may
terminate the agreement without penalty AND for full refund of AWM’s fees, within five business
days of signing the Financial Planning Agreement. Thereafter, clients may terminate the Financial

Planning Agreement generally with thirty day’s written notice.

AWM utilizes a $250/hour factor for any additional work requested in addition to the fees listed
above and will be disclosed in writing to the client. Clients may terminate the agreement without
penalty AND for full refund of AWM’s fees, within five business days of signing the Financial
Planning Agreement. Thereafter, clients may terminate the Financial Planning Agreement
generally with thirty day’s written notice.

Erisa Retirement Plan Services

Fees for retirement plan services provided to ERISA Plan Sponsors are negotiated by AWM and
the Plan Sponsor and will not exceed 0.75%.

 Payment of Fees

Payment of Portfolio Management Fees

Portfolio management fees are withdrawn directly from the client’s accounts with client’s written
authorization. Clients should refer to Item 15 for further details regarding direct fee deduction. Fees
are paid quarterly in advance.

Payment of Financial Planning Fees

Financial planning fees are paid via check or withdrawn directly from the client’s accounts with
client’s written authorization. Clients should refer to Item 15 for further details regarding direct fee
deduction.

    •   Full Service: fees are paid annually in arrears as work is completed.

Erisa Retirement Plan Services

A Plan Sponsor’s agreement with the recordkeeper will determine the frequency at which fees are
paid. For example, fees may be calculated and billed quarterly in arrears or advance; however, some
recordkeepers may calculate and bill more frequently.

 Clients Are Responsible for Third Party Fees

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

 Prepayment of Fees

AWM collects fees for portfolio management services in advance. Refunds for unearned fees paid in
advance will be returned promptly to the client via check or return deposit back into the client’s account.

        For all unearned asset-based fees paid in advance, the fee refunded will be the balance of the fees
        collected in advance minus the daily rate* times the number of days in the billing period up to and
        including the day of termination. (*The daily rate is calculated by dividing the annual asset-based
        fee by 365.)

        Full service financial planning fees are charged in arrears.

        For limited financial planning engagements, fees are typically collected 50% in advance, with the
        remaining balance due upon completion. Th Firm does not require prepayment of more than $1,200
        in fees per client, six months or more in advance, For any unearned fixed financial planning fees
...

Item 7: Types of Clients

      AWM generally provides advisory services to the following types of clients:

         ❖ Individuals
         ❖ High net worth individuals
         ❖ Small Businesses

      The household minimum investable assets are $500,000 or more for custom portfolios, which can be

waived at the discretion of the firm. Households under $500,000 will only be allowed to use the ETF
only Portfolio Strategy.

AWM currently provides advisory services to individuals, including high net worth individuals.
AWM does not screen prospective clients for particular investment profiles but does strive to work
with clients looking for a collaborative advisory relationship.