Cambridge Wealth Management LLC

ITEM 5 - FEES AND COMPENSATION
Investment Management Fees and Compensation
Cambridge Wealth Management charges a fee as compensation for providing Investment
Management services on your account. These services include advisory and consulting
services, trade entry, investment supervision, and other account-maintenance activities.
Our custodian charges transaction costs, custodial fees, redemption fees, retirement plan,
and administrative fees or commissions. See Additional Fees and Expenses below for more
details.

Cambridge Wealth Management’s investment management fees are negotiable, and these
fees are negotiated with the client ahead of time. We offer a choice of compensation
options from which the client can choose, depending on which will be most beneficial to
the client. We charge either a fixed percentage fee of assets under management or a flat
fee for our services. The amount of this fee is set on a case-by-case basis and is determined
based on a number of factors including the size of the account, services rendered,
complexity of the portfolio, extent of activity in the account, or other reasons agreed upon
by the client and us.

New Client Investment Management Tiered Fee Schedule

Assets Under Management (AUM)                         Annual Fee Percentage
For the first $750,000                                1.25%
$750,001 < $1,500,000                                 0.95%
$1,500,001 < $2,500,000                               0.85%
$2,500,001 < $3,500,000                               0.75%
$3,500,001 < $5,000,000                               0.65%
$5,000,001 < $10,000,000                              0.55%

Minimum Management Fee:                        0.55%
Example: A client with $1,000,000 in assets under management would pay $11,750
annually or 1.175%

The fee charged is calculated on a case-by-case basis with each client and is not charged
on the basis of a share of capital gains upon, or capital appreciation of, the funds or any
portion of the funds of an advisory client (SEC Rule 205(a)(1)).

For purposes of determining the value of the assets in a client’s account, securities and
other instruments traded on a market for which actual transaction prices are publicly
reported are valued at the last reported sale price on the principal market in which they
are traded.

The fees for investment management are based on an annual percentage of assets under
management and are applied to the household asset value on a pro-rata basis and billed
quarterly in advance. The initial fee will be based upon the account value as of the advisory
agreement execution date, as accepted for management by Cambridge Wealth
Management, or when the assets are transferred, through the last day of the current
calendar quarter. Thereafter, the fee will be based on the account value on the last business
day of each quarter. Fees are assessed on all assets under management, including
securities, cash, and money market balances. The market value will be determined as
reported by the Custodian.

In certain circumstances, our fees and the timing of the fee payments may be negotiated.
Our employees and their family related accounts are charged a reduced fee for our
services.

We aggregate related client accounts for the purposes of determining the account size and
annualized fee. This common practice is often referred to as “house-holding” portfolios,
which is done for fee purposes, and may result in lower fees than if fees were calculated
on portfolios separately. Our method of house-holding accounts for fee purposes looks at
the overall family dynamic and relationship. With the permission of our client, we often will
include multi-generational factors such as the account values of adult children and
grandchildren as part of the family dynamic pricing.

Payment of our management fees will be made by the qualified custodian holding your
funds and securities provided you supply written authorization permitting the fees to be
paid directly from your account. We will not have access your funds for payment of our
fees without your written consent. Further, the qualified custodian agrees to deliver an
account statement directly to you, at least quarterly, showing all disbursements from your
account, including our advisory fees. In addition, Cambridge Wealth Management will send
an invoice to you on a monthly basis. We encourage you to review all account statements
for accuracy.

Either you or Cambridge Wealth Management may terminate the management agreement
immediately upon written notice to the other party. We charge investment management
accounts initiated or terminated during a calendar month or quarter a prorated fee. Upon
termination of any account, any prepaid, unearned fees will be promptly refunded, and any
earned, unpaid fees will be due and payable.

Upon termination, the client is responsible for monitoring the securities in their account,
and we will have no further obligation to act or advise with respect to those assets. In the
event of a client’s death or disability, Cambridge Wealth Management will continue
management of the account until we are notified of the client’s death or disability and
given alternative instructions by an authorized party.

Financial Planning Fee
The fee for a comprehensive financial plan is $4,000, and payments are made in two
installments: half at the commencement of the planning process, and the final payment
due upon delivery of the completed plan. Cambridge Wealth Management will deliver
plans within six (6) months of the date of the planning agreement.

The client may cancel within five (5) business days of signing the Investment Advisory
Agreement without fee or penalty. If termination occurs thereafter, fees will be prorated to
the date of termination and any unearned portion of the fee will be refunded to you based
on an hourly rate of $300.00. Services provided up to the date of termination but not yet
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ITEM 7 - TYPES OF CLIENTS
We provide investment advice to individuals, high-net-worth individuals, pension and
profit-sharing plans, estates, corporations, and charitable organizations. Our minimum
initial household value is $500,000; however, we may accept households and accounts for
less than the minimum at our sole discretion.