Councilmark Asset Management LLC

Item 5 – Fees and Compensation

Councilmark’s only source of revenue is the advisory fees paid by clients based on a percentage of the
market value of assets under management. Advisory fees are billed and payable at the end of each
calendar quarter based on the then current value of the account assets under management. Generally,
quarterly billings are delivered to the client’s custodian for payment from the client’s account under
management with a contemporaneous copy submitted to the client for their records. Fees may be
negotiable, depending on the particular requirements and circumstances of an account. In certain
circumstances, Councilmark may charge a fixed fee for its advisory services.

Our standard fee schedule for advisory services, on an annual basis, is as follows:

                         1.00% - First $2 million
                         0.70% - Next $3 million
                         0.50% - Next $5 million
                         0.30% - Amount over $10 million

                         Minimum Annual Fee - $20,000

Advisory contracts are subject to cancellation by either party upon 30 days prior written notice with fees
prorated through the date of cancellation.

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Councilmark’s fees 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 investments and other third parties such as fees charged by managers, 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 exclusive of and in addition to Councilmark’s fee, and Councilmark
shall not receive any portion of these commissions, fees, and costs.

Item 7 – Types of Clients

Councilmark provides investment supervisory services on a discretionary and non-discretionary basis to
individuals, trusts, corporations, charitable organizations, foundations, financial institutions, and
retirement plans.