Financial Mountain Inc

Item 5 – Fees and Compensation

A.     Fee Schedule
ASSET MANAGEMENT
FMI offers asset management services to advisory Clients. FMI charges an annual investment
advisory fee based on the total assets under management as follows:

           Assets Under Management                     Maximum Annual Fee

                  $0 - $150,000                                1.50%

              $150,001 - $1,000,000                            1.00%

             $1,000,001 - $2,000,000                           0.90%

                Over $2,000,000                                0.80%

This is a blended fee schedule, meaning different asset levels are assessed different fees, as
shown above. Fees are billed quarterly in advance based on the amount of assets managed
as of the close of business on the last business day of the previous billing period. Lastly,
please note that FMI may group certain related Client accounts, often known as
“householding”, for the purpose of minimizing the aggregate billing rate.
FINANCIAL PLANNING AND CONSULTING
FMI charges a fixed fee for financial planning and consulting. Prior to the planning process
the Client will be provided an estimated plan fee which will be based on the complexity of the
engagement. For fixed fee arrangements, services will be completed and delivered within
ninety (90) days contingent upon timely delivery of all required documentation. FMI reserves
the right to waive the fee should the Client implement the plan through FMI.

       FIXED FEES
       Fixed fee services are offered based on a fixed fee to never exceed $5,000
       depending on the complexity of the engagement. Fees are billed upon completion of
       the plan.

B.    Payment of Fees
Asset Management Fees are generally deducted directly from the Client’s Account.

Financial Planning and Consulting Fees are generally invoiced directly to the Client but may
also be deducted from another account held with FMI.

FMI, in its sole discretion, may charge a lesser investment advisory 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 FMI 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 FMI with thirty (30) days written notice
to Client and by the Client at any time with written notice to FMI. 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 FMI 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. FMI
does not directly receive any compensation from these fees. All of these fees are in addition
to the management fee you pay to FMI. For more details on the brokerage practices, see Item
12 of this brochure.

D.    Prepayment of Fees
Asset management fees are billed in advance.

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

Item 7 – Types of Clients & Account Minimums

FMI’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.