Arbus Capital Management LLC

Item 5 – Fees and Compensation

A. How we are compensated
Fees for discretionary investment management services will be based on a percentage
of assets under management as follows:

               Assets Under           Annual     Quarterly       Monthly Fee
               Management              Fee         Fee          (Rounded Up or Down
                                                                  When Necessary)
          $ 500,000 - $1,000,000       1.50%     0.375000%        0.125000%
          $1,000,001 - $2,000,000      1.25%     0.312500%        0.104167%
          $2,000,001 - $4,000,000      1.00%     0.250000%        0.083333%
          $4,000,001 and Over          0.75%     0.187500%        0.062500%

The above fees are negotiable, higher or lower, based on ArbusCM’s business decision,
services provided and client circumstances. The actual asset management fee is
specified in the client agreement and detailed in the client invoice. The assessment of
Assets Under Management will generally combine (i.e. “household”) clients’ individual
accounts, where practicable, in order to receive a lower management fee rate. The
selection of invoicing periods (annually, quarterly or monthly) is at the sole discretion of
ArbusCM.

ArbusCM provides an introductory, 30-minute meeting for prospective clients free of
charge. The investment account review service and financial planning service are
offered on an hourly-fee basis of $345 per hour or a negotiated fixed-fee basis. The
number of hours required will depend upon the complexity of the client’s financial
situation and unique circumstances. Prior to the formal investment review or financial
planning process a good-faith estimate will be provided to the client.

ArbusCM, at its sole discretion, may waive its minimum fee, minimum account size,
and/or charge a greater or lesser investment advisory fee, hourly fee or fixed fee, based
upon certain criteria such as historical relationship with client, type of assets to be
managed, anticipated future earnings capacity, related accounts, negotiations with
clients and other criteria that ArbusCM deems as a good business decision.

B. How our fees are paid
Discretionary investment management services fees are payable annually, quarterly or
monthly, in arrears, based on total account market value on the last business day of the

Arbus Capital Management, LLC                                                      Brochure
Form ADV Part 2A

calendar month/quarter. For accounts opened during the calendar month/quarter/year a
pro rata fee will be charged. ArbusCM will receive written authorization from the client to
deduct advisory fees from account(s) held by the qualified custodian. Fees are either
deducted from clients’ assets or clients are billed for fees as established in the clients’
written agreement with ArbusCM. The determination payment methods, fee deductions
or bills, is at the sole discretion of ArbusCM.

The investment account review service or financial planning service, hourly or fixed fee,
are billed in two payments; one-half at the commencement of the review, which is
refundable based on the pro rata of work completed and the balance of the payment is
due upon the delivery of the review recommendations; or as specified in the clients’
written agreement with ArbusCM.

C. Other types of fees
ArbusCM’s fees are exclusive of brokerage commissions, transaction fees, and other
related costs and expenses which shall be incurred by the client. Clients may incur
certain charges imposed by custodians, brokers, third party investments and other third
parties such as fees charged by managers, sub-advisors, separately managed accounts
(“SMAs”), etc., as management fees, custodial fees, deferred sales charges, odd-lot
differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and
taxes on brokerage accounts and securities transactions. Mutual funds and exchange
traded funds (ETFs) also charge internal management fees, which are disclosed in a
fund’s prospectus.

Such charges, fees and commissions are exclusive of, and in addition to, ArbusCM’s
fee, and ArbusCM shall not receive any portion of these commissions, fees and costs.

The client should review all fees charged by ArbusCM and others to fully understand the
total amount of fees to be paid by the client.

Item 12 further describes the factors that ArbusCM considers in selecting or
recommending custodian and broker/dealer for client transactions and determining the
reasonableness of their compensation (e.g., commissions).

D. Do we charge fees in advance
Discretionary investment management services fees are payable in arrears, not in
advance, therefore no refund policy is necessary. However, a pro rata advisory fee will
be charged for the portion of the quarter in which the assets were under management if
the agreement is terminated prior to the end of the quarter. All account management
responsibilities are assumed by the client after effective date of termination.

Arbus Capital Management, LLC                                                     Brochure
Form ADV Part 2A

The investment account review service and financial planning fees, either hourly or
fixed, are due in two payments, or as specified in the clients’ written agreement with
ArbusCM, one-half at the commencement of the review, which is refundable based on
the pro rata of work completed.

E. Do we get compensated (commissions) for the sale of securities
As a fee-only registered investment adviser, ArbusCM and our associates do not
receive compensation, commissions, sales charges, or service fees from the sale of
securities or other investment products to our clients.

Item 7 – Types of Clients

ArbusCM provides investment management services primarily to individuals, high-net
worth individuals, corporations and charitable institutions.

To open an account for discretionary investment management services an account
minimum of $1,000,000 is generally required. However, this minimum may be waived
based on unique client circumstances.