Covenant Asset Management LLC

Item 5: Fees and Compensation
Covenant is a fee-based investment advisor and only earns fees explicitly enumerated
within the fee agreement within the Agreement signed by clients at the initiation of their
advisory relationship.
Financial Planning Fees. Covenant offers clients a broad range of financial planning
services as part of its comprehensive investment management model. While not the
Firm's typical practice, Covenant may also agree to provide financial planning under a
stand-alone consulting engagement for a fixed or hourly fee. Fees are negotiable,
however hourly fees are generally charged at a rate of up to $300 per hour, and fixed fees
may range up to $20,000, depending upon the scope and complexity of the services
rendered.
Covenant may recommend additional investment advisory services to its financial
planning clients, which creates a conflict of interest if it results in additional compensation
to the Firm. If the client elects to act on any of the recommendations made by the Firm,
the client is under no obligation to implement the transaction through Covenant. For
clients choosing to engage the Firm for additional investment advisory services, Covenant
may offset a portion of its fees for those services based upon the amount paid for the
financial planning services. The terms and conditions of the engagement are set forth in
the client’s Financial Planning Agreement and Covenant generally requires one-half of the
fee (estimated hourly or fixed) payable upon execution of the Financial Planning
Agreement. The outstanding balance is generally due upon delivery of the financial plan
or completion of the agreed-upon services and is payable by check. The Firm anticipates
that, in all cases, completion of financial planning services will occur within six (6) months.
Investment Management Fees. Covenant principally offers investment management
services for an annual fee based on the amount of assets under the Firm's management.
The terms and conditions of the engagement are set forth in the Investment Advisory
Agreement, including our standard asset management fee schedule shown below. Fees
are negotiable depending on the size, nature and complexity of a client's account.
Covenant has no minimum account size requirement.
Covenant Asset Management Standard Annual Fee Schedule
On the first $1 million                    1.25%
$1 million to $3 million                   1.00%
$3 million to $5 million                   0.85%
$5 million to $10 million                  0.75%
Above $10 million                          0.50%

Fees may be modified upon the consent of the parties. Clients should note that fees for
comparable services vary; higher or lower fees for comparable services may be available
from other sources.

Fees will be calculated and are payable in arrears, typically on the last day of each calendar
month. Fees are calculated as follows: One-twelfth (1/12) of the annual management fee
shall be multiplied by the ending market value of the total assets in each client account
on the last trading day of such month. Total assets includes the total absolute value of all
assets, with no offsets made for margin or other debit balances. For the first and last
month during the term of the investment advisory agreement, fees will be prorated. Cash
in each account and assets invested in shares of mutual funds, exchange traded funds or
other investment companies will be included in calculating the value of the client account
for purposes of computing Covenant’s fees.

Additional Fees and Expenses. Covenant’s Fees do not include brokerage, custodial,
transaction or redemption fees. Clients may incur certain charges imposed by custodians,
brokers, and other third parties. These fees include custodial fees, account maintenance
fees, trade commissions, interest on margin loans, deferred sales charges, 12b-1 fees,
odd-lot differentials, transfer taxes, wire transfers, alternative investment processing
fees, ETF and mutual fund management fees, other product-level fees, electronic fund
fees, and other fees and taxes on brokerage accounts and securities transactions. While
Covenant strives to recommend no-load funds, certain 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
Covenant’s fee, and Covenant shall not receive any portion of these commissions, fees,
and costs. See Item 12. “Brokerage Practices.”

Direct Fee Debit. Client authorizes Custodian, upon receipt of notification by Covenant of
payment due, to promptly pay Covenant by deducting such fees from client's account.
Custodian has agreed to send statements to client not less than quarterly, detailing all
account transactions, including any amounts paid to Covenant. Client agrees that any fees
not so deducted by custodian shall be due and payable directly by client.

Covenant does not have any third-party revenue sharing agreements, does not accept
commissions or compensation from any other source (i.e., mutual funds, insurance
products or any other investment product) and we do not receive any payment from your
custodian in exchange for holding your account on their platform.

Conflicts of Interest

Our advisors receive a portion of the management fee that we receive on your assets that
we manage for you. Our asset-based fee arrangement could give us an incentive to
encourage you to deposit more assets in your account because it would increase our
management fee. The more your portfolio with Covenant grows, whether because of
market performance or additional assets under management, the greater your advisor’s
compensation will be. You are never under any obligation to add new assets to your
account with Covenant.

Timothy Rowe, as an investment advisor representative of Covenant, is an advisory
affiliate and related person of the firm. Mr. Rowe, in addition to his role at Covenant, is
...

Item 7: Types of Clients

Covenant offers a full array of wealth management services, including investment
management, comprehensive financial and estate planning, business continuation
counseling, and administrative services. The integration of these services forms the basis
for a comprehensive wealth management plan. In order to allow us to concentrate
exclusively on our areas of expertise in wealth management, we outsource certain
administrative and custodial services. Covenant works closely with client attorneys and
accountants to ensure that a comprehensive strategy is designed and implemented in
order to realize their financial objectives. Covenant manages the following types of client
accounts:

      Investment Management Accounts for Individuals
      Individual Retirement Accounts (IRAs) & Rollovers
      401k Plans
      Pension & Profit-Sharing Plans
      Trust & Estate Accounts
      Charitable Organizations and Foundations
      Small Business Accounts
      Corporate Accounts