Brave Asset Management Inc

FEES AND COMPENSATION
The annual fee for investment account management services of new clients who commence receipt
of services from BFA after January 1, 2013, is one percent (1%) of the value of all managed assets
of such client.

The annual fee is calculated quarterly, representing one-fourth of the annual rate fee, and is based
upon the value of managed assets on the last business day of each calendar quarter. The fee is
payable at the end of each calendar quarter for which services have been provided. BFA does not
accept any prepayment of advisory fees. In the event the assets managed by the Adviser are under
management for less than one calendar quarter, BFA’s compensation shall be calculated and
payable on a pro rata basis. The advisory fees charged by BFA are negotiable and on a tiered fee
schedule.

The consulting fees charged by BFA to Plans are assessed on a negotiated basis point cost with
the Plan.

For ease of operation, BFA requests permission from investment management clients and plans to
deduct appropriate quarterly fees calculated in arrears from their account; however, if a client
would prefer to pay by check that form of payment is acceptable as well.

BFA’s fees assessed to its clients are exclusive of brokerage commissions, transaction fees, and
other related costs and expenses which may be incurred by the client. Clients may incur certain
charges imposed by custodians, brokers, third party investment and other third parties such as
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 also charge internal management fees, which are
disclosed in a fund’s prospectus. Such charges, fees and commissions are all exclusive of and in
addition to BFA’s fee, and BFA shall not receive any portion of these commissions, fees, and
costs.

The specific manner in which fees are charged by BFA is established in a client’s written
agreement with BFA. Management fees shall be prorated for each capital contribution and
withdrawal made during the applicable calendar quarter (with the exception of de minimis
contributions and withdrawals).

Upon termination of any account, any earned, unpaid fees will be due and payable.

Regarding brokers’ fees compensation, please also refer to the section entitled “Brokerage
Practices” below which describes the factors BFA considers in selecting or recommending broker-
dealers for client transactions and determining the reasonableness of their compensation (e.g.,
commissions).

  PERFORMANCE-BASED FEES AND SIDE-BY-SIDE MANAGEMENT
BFA does not charge any performance-based fees (fees based on a share of capital gains on or
capital appreciation of the assets of a client).

TYPES OF CLIENTS
BFA provides portfolio management services to individuals, high net worth individuals, charitable
institutions, foundations, estates, and trusts. BFA maintains no established minimum asset
requirement for such clients’ accounts. BFA also offers investment consulting services to Plans.

METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF
LOSS
BFA uses a variety of methods of analysis and investment strategies to formulate its investment
advice and manage assets. These methods include charting, fundamental, technical, and cyclical
analyses.

Strategies used to implement investment advice given to clients may include long term and short-
term purchases (securities held less than or more than one year), trading securities (securities sold
within a year) short sales, margin transactions, writing and buying options.

Generally, BFA discourages the use of leverage in its clients’ investment portfolios. The risks of
using short sales include the fact that while the possible gains are limited, an adverse price change
can mean that an investor loses more than the original value with the potential of no upper limit.
Due to risk, BFA uses short sales sparingly, usually to hedge market risk or to arbitrage temporary
price distortions. Margin transactions are used by a limited number of clients, often as a source of
short-term borrowing for specific purposes. The risks of trading securities on margin include the
potential loss of more than what the client deposited if the value of the purchased securities decline
and there is a forced sale to cover a margin deficiency. Option activity is confined to a small
number of client accounts and used with close consultation between BFA and the client regarding
the anticipated outcome relative to the funds invested. Writing and buying options entails the risk
of the option’s value changing over time as the value is impacted by how much the underlying
security price moves, how long it takes and the security’s volatility.

BFA does not guarantee the future performance of any account or any specific level of
performance, or the success of any investment decision or strategy. All investment decisions are
subject to various market, currency, economic, political and business risks and investment
decisions will not always be profitable. As a client, you are advised that it remains your
responsibility to promptly notify us if there is ever any change in your financial situation or
investment goals so that BFA’s review of your portfolio may be updated in line with your current
financial objectives.

BFA may invest client assets in Crypto ETFs. BFA will ensure any client meets the suitability
requirements for a Crypto ETF. Cryptocurrencies may experience very high volatility; investors
should be prepared to bear the economic risk of loss of their investments. The price of a virtual
currency is based on the perceived value of the virtual currency and subject to changes in
sentiment, which make these products highly volatile. Certain virtual currencies have experienced
daily price volatility of more than 20%. The risks associated with the extreme price volatility of
virtual currencies and the possibility of rapid and substantial price movements, which could result
in significant losses.

Investing in securities involves risk of loss that clients should be prepared to bear.

                      INVESTMENT CONSULTING SERVICES
BFA offers investment consulting services to “participant-directed” retirement plans established
by a Plan sponsor under the provisions of Section 404(c) of ERISA. Section 404(c) permits a plan
participant to exercise control over the assets which comprise such participant’s retirement account
under the plan. BFA provides the following services to those types of Plans and their participants:

   •   Recommendations on Plan investment options to Plan sponsor;
   •   Assistance with enrollment of Plan participants;
   •   Education of participants on Plan investment elections; and
   •   Periodic review of Plan performance with Plan sponsor.

All these consulting services are provided as “investment education” and not with a view to BFA
being a “fiduciary” of such Plan assets. BFA does not have any discretionary control over any
Plan assets.

BFA additionally does not provide individualized investment advice to Plan participants and any
investment recommendations by BFA are provided solely to the Plan sponsor regarding the Plan
assets. Specifically, BFA does not provide individualized advice to Plan participants in the event
that the following situations are present with respect to a Plan:

   •   the Plan permits individual self-directed brokerage accounts and/or participant loans
       thereunder; or
   •   the Plan permits Plan participants to invest in publicly traded stock of the Plan sponsor.