Fair Asset Management LLC

Item 5 – Fees and Compensation

A.     Fee Schedule
WEALTH MANAGEMENT SERVICES
Our advisory fee is negotiable and consists of a flat annual fee of up to $7,500. The fee is
paid monthly in arrears based on dividing the total annual fee by 12, for example ($7,500 /
12 = $625 per month). The final agreed upon fee will be outlined in your Advisory Contract.

FAM provides services based on a flat annual fee. However, other types of fee
arrangements exist for legacy clients which are no longer offered.

The $7,500 flat annual fee on portfolio values less than or equal to $250,000 would
represent a 3% or greater fee, which is more than the industry norm. Similar advisory
services can be obtained elsewhere for less.

In determining the advisory fee, we may allow accounts of members of the same household
to be aggregated. FAM relies on the valuation as provided by the client’s custodian in
determining assets under management. Our advisory fee is prorated for any partial billing
period occurring during the engagement, including the initial and terminating billing periods.
Adjustments will be made for deposits and withdrawals during the billing period.

B.      Payment of Fees
Wealth Management fees are generally deducted from one or more account(s) held at an
unaffiliated third-party custodian, as directed by the Client.

FAM, in its sole discretion, may charge a lesser Wealth Management fee based upon certain
criteria (e.g., historical relationship, type of assets, anticipated future earning capacity,
anticipated future additional assets, dollar amounts of assets to be managed, related
accounts, account composition, negotiations with Clients, etc.).

For all services, Clients may terminate their engagement with FAM within five (5) business
days of signing an Agreement with no obligation and without penalty. After the initial five (5)
business days, the Agreement may be terminated by FAM with thirty (30) days written notice
to Client and by the Client at any time with written notice to FAM. For accounts opened or
closed mid-billing period, fees will be prorated based on the days services are provided during
the given period. All unpaid earned fees will be due to FAM and all unearned fees will be
refunded to the Client. Any increase in fees will be acknowledged in writing by both parties
before any increase in said fees occurs.

C.     Additional Fees
Custodians may charge brokerage commissions, transaction fees, and other related costs
on the purchases or sales of mutual funds, equities, bonds, options, margin interest, and
exchange-traded funds. Mutual funds, money market funds, and exchange-traded funds may
also charge internal management fees, which are disclosed in the fund’s prospectus. FAM
does not directly receive any compensation from these fees. All of these fees are in addition
to the management fee you pay to FAM. For more details on the brokerage practices, see
Item 12 of this brochure.

D.   Prepayment of Fees
FAM does not expect Clients to prepay fees.

E.   External Compensation for the Sale of Securities
FAM does not receive any external compensation from the sale of securities.

Item 7 – Types of Clients & Account Minimums

FAM’s Clients are generally individuals and high net-worth individuals. Client relationships
vary in scope and length of service.

There is no minimum account size and Clients are not required to have a certain amount of
investment experience or sophistication.