Droms Strauss Advisors Inc

Item 5 - Fees and Compensation
Droms Strauss Wealth Management
Droms Strauss charges most of its clients an annual investment management fee based on the following
schedule:

Assets under management                                       Annual Fee
First $500,000                                                 1.00%
From $500,001 to $1,000,000                                    0.90%
From $1,000,001 to $2,000,000                                  0.75%
From $2,000,001 to $5,000,000                                  0.60%
From $5,000,001 to $10,000,000                                 0.40%
Amounts in excess of $10 Million                               0.25%

The fee schedule is negotiated on a client-by-client basis. This fee schedule is negotiated based upon the
size of the account and the estimated time required for management. The firm has waived or negotiated
lower fees for certain clients. The firm has a minimum annual fee of $4,000, which may be waived or
reduced by Droms Strauss in its sole discretion. Existing clients may have differing fee schedules than the

ones described in this Brochure. Furthermore, employees, family members, and others with relationships
with Droms Strauss’ associated persons may be charged lower fees or no fees, at Droms Strauss’ sole
discretion.

Client Investment Advisory Agreements provide that fees are paid quarterly, in advance, based upon the
fair market value of the account balance under management on the last day of the preceding calendar quarter
plus or minus prorated fees for additions to (or subtractions from) the account during the preceding quarter.
Most clients authorize us to deduct fees automatically from their advisory accounts, but clients may request
that we send quarterly invoices to be paid by check. The custodial account statements will indicate the
amount of Droms Strauss’ advisory fees deducted from the advisory account(s) each billing period. Note:
The custodians do not verify the accuracy of Droms Strauss’ advisory fee calculation, and clients do not
receive an invoice from Droms Strauss showing calculation of its advisory fees. Clients with any questions
should contact Droms Strauss using the information on the front of this Brochure.

Either Droms Strauss or the client may terminate the Investment Advisory Agreement upon thirty (30) days
written notice. Any earned but unpaid fees will be billed to the client at that time. Similarly, any prepaid but
unearned fees will be refunded to the client. Any refunds due to a terminated client are calculated on a pro-
rata basis, based upon days under management through the termination date (i.e., 30 days after written
notice).

Droms Strauss, in its sole discretion, aggregates individual accounts for members of the same family,
defined as husband, wife, dependent children and trusts for the benefit of such family members, based upon
the total account balances for all family accounts for purposes of determining the annual fee breaks, as
reflected above. In some instances, Droms Strauss offers reduced fees for adult children of clients under the
age of 30.

In addition to our investment management fees, clients will incur trading costs and custodial fees (please
refer to the Brokerage Practices section for more information). To the extent that clients’ accounts are
invested in mutual funds, these funds pay a separate layer of management, trading, and administrative
expenses. In the event an Independent Manager is used to manage a portion of client assets, the fee paid to
the Independent Manager will be in addition to DSWM’s fee and automatically deducted from the client’s
account.

Item 7 - Types of Clients
Droms Strauss Wealth Management
Droms Strauss primarily provides customized investment management services to individuals, high-net-
worth individuals, trusts, estates, pension and profit-sharing plans, charitable organizations and foundations,
businesses and other legal entities. Our minimum account size requirement is $500,000, although in certain
instances this minimum may be waived at our sole discretion.