Biltmore Wealth Management LLC

Item 5: Fees and Compensation

How We Are Compensated for Our Advisory Services

Investment Advisory Service.

The client can determine to engage Biltmore to provide discretionary and/or nondiscretionary
investment advisory services on a fee-only basis. Biltmore’s annual investment advisory fee is based
upon a percentage (%) of the market value of the assets placed under Biltmore’s management as
follows:

               Market Value of Portfolio                   % of Assets
               First $500,000                              1.35%
               Next $500,000                               1.20%
               Next $2,000,000                             1.00%
               Over $3,000,000                             0.80%

For example, a $1,000,000 portfolio would be subject to the following calculated fee ($500,000* .0135) + ($500,000*.012) =
$6750 + $6000 = $12,750 annual management fee.

This annual fee shall be prorated and paid quarterly, in advance, based upon the market value of the
assets on the last business day of the previous quarter. Fees are rounded either up or down to the
nearest dollar and are generally negotiable. Biltmore does not include accrued dividends that are
derived from equity securities in the fee calculation of the market value of the portfolio. However,
the statement sent to the Client by Schwab will include such accrued dividends in the total market
value of the portfolio for performance reporting purposes. Additionally, it should be noted that we
bill on cash balances unless otherwise agreed to in writing. No increase in the annual fee percentage
shall be effective without prior written notification to the Client.

Clients may elect to have Biltmore’s advisory fees deducted from their custodial account. Both
Biltmore's Investment Advisory Agreement and the custodial/ clearing agreement may authorize the
custodian to debit the account for the amount of Biltmore's investment advisory fee and to directly
remit that management fee to Biltmore in compliance with regulatory procedures. In the limited
event that Biltmore bills the client directly, payment is due upon receipt of Biltmore’s invoice.

Other Fees:

Clients may incur transaction charges for trades executed in their accounts. Broker-dealers such as
Schwab charge brokerage commissions and/or transaction fees for effecting certain securities
transactions (i.e. transaction fees are charged for certain no-load mutual funds, commissions are
charged for fixed income securities transactions).Schwab does not charge transaction fees for U.S.
listed equities and exchange traded funds for clients who incur transaction fees via individual
transactions. In addition to Biltmore’s investment management fee, brokerage commissions and/or
transaction fees, clients will also incur, relative to all mutual fund and exchange traded fund
purchases, charges imposed at the fund level (e.g. management fees and other fund expenses).

Refunds Following Termination

Biltmore's annual investment advisory fee shall be prorated and paid quarterly, in advance, based
upon the market value of the assets on the last business day of the previous quarter. The Investment
Advisory Agreement between Biltmore and the client will continue in effect until terminated by either
party by written notice in accordance with the terms of the Investment Advisory Agreement. Upon
termination, Biltmore shall refund the pro-rated portion of the advanced advisory fee paid based
upon the number of days remaining in the billing quarter.

Commissionable Securities Sales

Neither Biltmore, nor its representatives accept compensation from the sale of securities or other
investment products.

Item 7: Types of Clients

Biltmore’s clients shall generally include individuals, high net worth individuals, business entities,
trusts, estates and charitable organizations.

Biltmore does not generally require an annual minimum fee or asset level for investment advisory
services. However, Biltmore, in its sole discretion, may charge a lesser investment management fee
based upon certain criteria (i.e. anticipated future earning capacity, anticipated future additional
assets, dollar amount of assets to be managed, related accounts, account composition, negotiations
with client, etc.).