Cheviot Value Management LLC

ITEM 5 - FEES AND COMPENSATION
Fee Schedule

Investment Management Services
CVM charges advisory fees for investment management services. Fees are charged based on a
percentage of the client’s total assets under management, per the following schedule:

                      Assets Under Management                          Annual Fee
                      First $5,000,000                                 1.00%
                      Next $5,000,000                                  0.80%
                      Next $5,000,000                                  0.60%
                      Additional amounts above $15,000,000             0.50%

Our standard fee rate may be negotiable based on a number of factors, which include but are not
limited to “grandfathered” accounts, related accounts, and other structures that we may consider in
special situations. CVM aggregates client accounts within the same household for purposes of
calculating the advisory fee rate applicable to each client. Some accounts are billed under different fee
schedules honoring prior agreements and/or legacy arrangements with outside managers that have
referred clients to CVM. We also waive or reduce fees for some family & friends, and certain institutions.
We adjust the quarterly fee in the client's favor on a per account basis for each addition of $250,000 or
more made during the 2nd and 3rd months of the billing quarter.

Financial Planning Services
CVM provides financial planning services without additional charge to clients that also engage us for
investment management services on portfolios of $500,000 or more. Otherwise, clients may choose
between an hourly or fixed fee for financial planning services. Factors used in determining the cost of a
financial plan include the complexity and nature of the client's circumstances and the overall scope of
the plan. Fees are based on the scope and complexity of the services provided but will not exceed
$10,000 for fixed fee engagements and $700 per hour for hourly arrangements. We quote all estimated
fees after the complimentary initial client meeting. We also provide financial planning to some family
members and friends without charge.

Cheviot Value Management                            10                                    Part 2A Brochure

Budget Coaching Services
CVM provides budget coaching services without additional charge to clients that also engage us for
investment management services on portfolios of $500,000 or more. Otherwise, clients pay a fixed rate
of $900. Upon a client’s request, four additional budgeting sessions are available for $600 paid in
advance.

Insurance Consulting Services
For providing platform services to RIAs, DPL receives service fees from the insurers that offer their
commission free products through the platform. These service fees are based on the insurance
premiums received by the insurers from DPL members’ clients. DPL provides CVM membership to its
platform for a fixed annual fee, which is paid in full through our existing subscription to the Black
Diamond Wealth Platform. Clients have no obligation to act upon insurance-related recommendations
made by CVM and/or DPL, and clients are not responsible for paying DPL any additional fees. However,
when applicable, CVM charges investment management services fees in accordance with the table listed
above for ongoing management of fee-based insurance products utilized through DPL.

Billing Method

Investment Management Services
CVM’s advisory fees are payable quarterly in arrears based on the account market value on the last
business day of the calendar quarter. The first payment is due after the first quarter under management.
The formula used for the calculation is as follows: (Annual Rate) x (Total Assets Under Management at
Quarter-End) / 4. On rare occasions, we are required to calculate our advisory fee using a different
billing methodology (e.g., average daily balance) for certain assets or account types, which may include
but are not limited to, annuity contracts or other investments held directly at an insurance company or
third-party custodian, where CVM’s standard billing methodology is not practicable. For advisory fee
calculation purposes, a calendar quarter is a period beginning on January 1, April 1, July 1, or October 1
and ending on the day before the next quarter. A day is any calendar day including weekends and
holidays. For new accounts, the number of days remaining in the quarter is the number of calendar days
following the date a new account is funded.

The client may choose to have advisory fees withdrawn directly from their custodian account or to pay
by check. If the client authorizes advisory fees to be withdrawn directly from their custodian account,
the custodian will withdraw CVM’s advisory fee upon receipt of CVM’s instructions, typically the first
month after the quarter in which advisory services were rendered. All clients will receive brokerage
statements from the custodian no less frequently than quarterly. The custodian statement will show the
deduction of the advisory fee. It is the client’s responsibility to verify the accuracy of the fee calculation.
The custodian will not determine whether the fee is properly calculated.

Additionally, CVM will send a statement to each client who authorizes CVM to withdraw fees directly
from the custodian. The statement will show the amount of the fee, the value of the client’s assets upon
which we based the fee, and the specific manner in which we calculated the fee.

Cheviot Value Management                              11                                       Part 2A Brochure

CVM will send an invoice to all clients who choose not to have advisory fees withdrawn directly from
their custodian account. The invoice is payable upon receipt and will include the fee calculation and
amount due.

Financial Planning and Budget Coaching Services
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ITEM 7 - TYPES OF CLIENTS
CVM generally provides discretionary investment advisory services to individuals, high net worth
individuals, trusts and estates, and individual participants of retirement plans. In addition, we offer
advisory services to charitable organizations, corporations, and pension/profit sharing plans.

Account Requirements
Generally, CVM requires clients to maintain a minimum portfolio size of $400,000 to $2,000,000
depending on the Financial Advisor(s) responsible for managing the portfolio accounts. Withdrawal of
significant funds may result in a request for additional fund deposits to continue with management of
the client’s portfolio. At our discretion, we may combine family accounts to meet the account size
minimum or reduce or waive the account minimum requirements.