AWM Financial Services Inc

Item 5 Fees and Compensation
Portfolio Management Fees

If you decide to engage AWM for portfolio management services, we will charge an annual fee based
upon a percentage of the market value of the assets being managed. Our fee for portfolio/asset
management services is as detailed below:

Fees for individually managed accounts are priced at a maximum of 2.0% depending upon the amount
of the assets in the account, the complexity of the financial plan and the advisory services necessary for
the particular Client. The asset management fee will be confirmed at the time of the advisory
agreement. Client accounts invested solely in money market funds are managed under a reduced
advisory fee arrangement of 0.25%

AWM allows related accounts to be combined for fee paying purposes. We combine the account
valuations to assist you in meeting fee breakpoints and therefore lowering the overall fee level. AWM
extends this option to all accounts residing in the same household and certain members of the same
family.

In addition, AWM imposes an annual administrative and technology fee of $50 on all accounts. This
fee is debited at the end of the May billing cycle. This fee is applicable to discretionary, non-
discretionary, and non-managed accommodation accounts regardless of the account’s value. This fee
can be waived at the discretion of AWM.

All asset-based fees are deducted by the qualified custodian of record on a monthly basis in arrears,
calculated on the end-of-month balance or as otherwise indicated in the client agreement. Client
statements for prior deductions will be provided on a monthly basis.

All fees paid to AWM for investment advisory services are separate and distinct from the expenses
charged by third-party managers and Investment Companies to their shareholders. These fees and
expenses are described to the client in separate disclosures. These fees will generally include third-party
management fees, an Investment Company management fee, other fund expenses, and in some situations
a possible distribution fee.

AWM will provide investment advisory services and portfolio management services but will not provide
custodial or other administrative services. At no time will AWM accept or maintain custody of a client’s
funds or securities except for authorized fee deduction. The Client may contact the Custodian directly
for disbursements, or account record changes, and may also do so in writing to the custodian. AWM may
act at the client’s convenience to facilitate such written communications to the Custodian, provided that
such action is not construed to be custody of client assets.

Client is responsible for all custodial and securities execution fees charged by the custodian and
executing broker-dealer. Fees paid to AWM are separate and distinct from the custodian and execution
fees.

Clients may request to terminate their advisory contract with AWM, in whole or in part, by providing
advance written notice. Upon termination, any fees paid in advance will be prorated to the date of
termination and any excess will be refunded to client through the Custodian. Client’s advisory agreement
with the Advisor is non-transferable without Client’s written approval.

Third Party Advisor (TPAs) Fees

AWM will perform management searches of various independent registered investment Advisors for
referral to AWM clients. AWM will share in the fee paid to the TPA. The management fee is disclosed
in the TPA's disclosure documents. These fees may or may not be negotiable. AWM's compensation
may differ depending upon the firm’s individual agreement with each TPA. AWM or its Associated
Persons may have an incentive to recommend one TPA over another TPA with whom it has less
favorable compensation arrangements or other advisory programs offered by TPAs with which it has no
compensation arrangements. In order to address this conflict, the firm has adopted a code of ethics that
obliges all associated persons to deal fairly with all clients when taking investment action and to uphold
their fiduciary duty and to put the client's interest first. Clients are not required to use the services of any
TPA we recommend.

Financial Planning & Consulting Services Fees

AWM may provide its clients with consulting services, to include financial planning. If the client decides
to engage us for consulting services, we will charge an hourly fee of $1,000. The fee is negotiable
depending on the nature, complexity, and time involved in providing the client with the requested
services.

If the client engages AWM for additional investment advisory services, AWM may offset all or a portion
of its fees for those services based upon the amount paid for the consulting services. In our discretion,
we may also waive or offset a portion of the financial planning fee by commissions earned by Associated
Persons for the sale of insurance products, in their separate capacities as insurance agents.

Prior to engaging AWM to provide consulting services, the client will generally be required to enter into
a written agreement with us. The agreement will set forth the terms and conditions of the engagement
and describe the scope of the services to be provided and the portion of the fee that is due from the client.
Generally, AWM requires full payment upon the completion of the agreed-upon services. Either party
may terminate the agreement by written notice to the other. In the event the client terminates AWM’s
consulting services, the fee will be pro-rated through the date of termination, and any remaining balance
will be charged to the client.

Right of Cancellation

In addition to the right to terminate an agreement pursuant to its terms, a client may cancel an agreement
with AWM within five (5) business days of first receiving a copy of this disclosure brochure and
supplement without penalty or fee.

Compensation for Sales of Securities

AWM is compensated solely through advisory, planning and consulting fees paid by clients. The Firm
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Item 7 Types of Clients
AWM provides investment advice to many different types of clients. These clients generally include
individuals, trusts, estates, corporations, charitable organizations, and other types of business entities.

Minimum Account Size

AWM requires a minimum of $500,000 to open and maintain an advisory account. At our sole
discretion, we may waive this requirement. This requirement can be met by combining two or more
accounts owned by you or related family members.