Canton Hathaway LLC

Item 5: Fees & Compensation
A. Fees for Advisory Services

B. Investment Management Services
Investment management fees are payable monthly, at the end of each month, as delineated in the terms of
the investment management agreement entered into between Canton Hathaway and each Client. Investment
advisory fees are based on the market value of assets under management at the end of each month, pursuant
to the following fee schedule:

                       Assets Under Management                         Maximum Annual Fee
                       Less Than $2,000,000                                    90bps.
                       $2,000,000-$5,000,000                                   80bps.
                       $5,000,000-$10,000,000                                  70bps.
                       Over $10,000,000                                        60bps.

The investment advisory fee in the first month of service is prorated from the inception date of the applicable
accounts to the end of the first month. Fees may vary from the above fee schedule depending on the nature
and complexity of each Client relationship, types of investments held within an account, or with the
inclusion of other services. Fees may be waived or reduced at the sole discretion of the Advisor. The

Client’s fees will take into consideration the aggregate assets under management with Advisor, including
any assets invested in the Firm’s affiliated funds. All securities held in accounts managed by Canton
Hathaway will be independently valued by the Custodian (as defined below) of said accounts. Canton
Hathaway does review and will make good faith efforts to provide a valuation of illiquid or thinly traded
assets held by Clients, including those investments made into funds managed by Canton Hathaway.

When valuing illiquid or thinly traded assets, common methods include: asset approach (book value),
comparable company analysis (with adjustments for liquidity), liquidation value, precedent transactions
analysis, discounted cash flow (DCF) with adjusted risk factors, and option pricing models; all of which
take into account the difficulty of selling the asset quickly and may require significant adjustments based
on the specific situation. For investments in the Funds, where the assets are real-estate based, an analysis
of similar properties in the same or substantially similar neighborhoods will be reviewed to develop a
valuation of the property.

    •   Asset approach: This method values an asset based on its balance sheet value, which is often
        considered a conservative estimate for illiquid assets as it doesn't account for potential market
        value fluctuations.

    •   Comparable company analysis: While comparing to similar publicly traded companies can be
        useful, significant adjustments need to be made to account for the illiquidity of the target asset by
        applying a liquidity discount.

    •   Liquidation value: This method estimates the value of an asset if it were to be sold quickly, often
        resulting in a lower value due to potential fire sale conditions.

    •   Precedent transactions analysis: Looking at recent sales of comparable assets can provide valuable
        insights, but these transactions may also have been done under unique circumstances.

    •   Discounted cash flow (DCF): This method requires carefully adjusting the discount rate to reflect
        the higher risk associated with illiquid assets.

    •   Option pricing models: These models can be useful for valuing illiquid assets with embedded
        options but require complex assumptions and may not be suitable for all situations.

Fund Management Service
Canton Hathaway only provides fund management services to our affiliated entities. The Firm receives
management and administrative fees for managing the Funds. The Funds accept investors who invest
directly into the Funds as well as those clients who have other assets managed by the Firm. However,
direct investors in the Funds do not pay Fund management fees monthly. Rather, direct investors pay
management and administrative fees quarterly upon receipt of an invoice from the Funds. For Fund
investors who have other assets managed by the Firm, the assets invested in the Fund would be counted
towards the total assets under management subject to the investment management fees agreed to in the
client’s investment management agreement.

Investors in the Funds sign an investment management agreement with the Firm and are subject to the
following fee schedule:

                          Assets Under Management                        Maximum Annual Fee
                          Less Than $2,000,000                                    90bps.
                          $2,000,000-$5,000,000                                   80bps.
                          $5,000,000-$10,000,000                                  70bps.
                          Over $10,000,000                                        60bps.

   Additionally, Fund investors will be required to pay an annual administrative fee in the amount of $500
   (the “Administrative Fee”). The Firm may reduce or waive the management and administrative fees for
   the Funds in its sole discretion.

   Outsourced CIO Services
   Canton Hathaway assesses either a fixed fee or a fee based on a percentage of assets under management for
   Outsourced CIO Services. The maximum annual fee charged as a percentage of assets under management
   ranges from 0.05% - 0.50%. The fixed fee charged for our Outsourced CIO services ranges from $50,000
   to $150,000 per year and may be reduced or waived in the Firm’s sole discretion. The ultimate fee charged
   is based on the scope and complexity of Canton Hathaway’s engagement with the Client. Fees for
   Outsourced CIO Services are billed monthly or quarterly in arrears. If charging a percentage fee, the fee
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Item 7: Types of Clients & Account Requirements
Canton Hathaway provides investment advisory services primarily to individuals, pension funds, estates,
family groups, trusts, and charitable organizations. Canton Hathaway advises Clients based on their
individual needs. All accounts are separately managed. In general, $2.0 million in investable assets is
required to open an account. We reserve the right to waive or reduce the minimum account requirement. We
also reserve the right to decline to enter into an agreement with any prospective Client, even those meeting
the minimum investable asset requirement.

Clients who opt into electronic delivery of statements or maintain at least $1.0 million in assets at Fidelity
will not be charged transaction fees by Fidelity for the purchase and/or sale of U.S. listed equities and
exchange traded funds. Not all custodians offer this benefit, and each client should refer to their custodial
statements for any additional transaction fees that may be rendered.