Forest Asset Management LLC

Item 5 – Fees and Compensation
In certain circumstances, all fees, account minimums and their applications to family circumstances may be
negotiable.

FAM has contracted with Focus Partners Advisor Services (“FPAS”) for services, including trade
processing, collection of management fees, record maintenance, report preparation, marketing
assistance, and research. FAM has also contracted with FPAS for certain sub-advisory services. In certain
instances, FAM pays a fee for these FPAS services based on management fees paid to FAM on accounts
that use FPAS services. The fee paid by FAM to FPAS varies based on the total client assets administered
and/or sub advised by FPAS through FAM. These fees will not be separately charged to advisory clients
are included within the advisory fees charged to clients. There may be other fees Advisor clients may pay
to FPAS directly under separate fee agreements.

The specific manner in which fees are charged by FAM is established in a client’s written agreement with
FAM. Investment Management and Employee Benefit Plan clients will be invoiced in advance at the
beginning of each calendar quarter based upon the value (market value based on independent third party
sources or fair market value in the absence of market value; client account balances on which FAM
calculates fees may vary from account custodial statements based on independent valuations and other
accounting variances, including mechanisms for including accrued interest in account statements) of the
client’s account at the end of the previous quarter. New accounts are charged a prorated fee for the
remainder of the quarter in which the account is incepted (date of first trade).

For Investment Management and Employee Benefit Plan Services, FAM will request authority from the
client to delegate discretion to trade in the client’s account, and to receive quarterly payments directly
from the client's account held by an independent custodian. Clients may provide written limited
authorization to FAM or its designated service provider, FPAS, to withdraw fees from the account. Clients
will receive custodial statements showing the advisory fees debited from their account(s). Certain third-
party administrators will calculate and debit FAM’s fee and remit such fee to FAM.

A client agreement may be canceled at any time, by either party, for any reason upon receipt of 30 days
written notice. Upon termination of any account, any prepaid, unearned fees will be promptly refunded.
FAM’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which shall be incurred by the client. Clients may incur certain charges imposed by custodians,
brokers, third party investment and other third parties such as fees charged by managers, custodial fees,
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. These fees will generally include a
management fee and other fund expenses. All fees paid to FAM for investment advisory services are
separate and distinct from the fees and expenses charged by mutual funds and ETFs to their shareholders.

Such charges, fees and commissions are exclusive of and in addition to FAM’s fee, and FAM shall not
receive any portion of these commissions, fees, and costs.

Advisory Fees

Investment Management Services:

The annual fee for investment management services, including trustee-directed retirement plans, will be
charged as a percentage of assets under management, according to the schedule below subject to
negotiation:

                    Assets Under Management                       Annual Fee (%)
                       $200,000 - $499,999                            1.25%
                       $500,000 - $999,999                            1.00%
                      $1,000,000 - $1,999,999                         0.90%
                      $2,000,000 - $2,999,999                         0.80%
                      $3,000,000 - $4,999,999                         0.70%
                       $5,000,000 or greater                          0.60%

In 2017 and prior years FAM followed a separate fee schedule, which remains in effect for clients who
signed agreements with FAM during that period and who have not agreed to an amended advisory fee
schedule.

FAM generally requires a minimum account size of $200,000 for Investment Management Services, with a
minimum quarterly fee amount of $625. If a client portfolio is under $200,000 in assets under
management (“AUM”), the minimum fee will be applied. All accounts for members of the client's family
(husband, wife, and dependent children) or related businesses may be assessed fees based on the total
balance of all accounts.

For clients with AUM greater than $7 million, the standard fee rate is typically 0.60%. However, there is
flexibility to negotiate fees based on specific factors such as the complexity of the account or client
relationship and the unique needs of the client. In some circumstances a flat fee can be negotiated
annually. All negotiated fees are subject to mutual agreement and will be outlined in the client’s advisory
agreement.

Employee Benefit Retirement Plan Services:

The annual fee for participant-directed plan services will be charged as a percentage of assets within the
plan.

             Assets Under          Focus Partners Advisor    FAM Annual Fee              Total Fee
             Advisement            Solutions Annual Fee

        On the first $1,000,000            0.20%                  0.70%                   0.90%
        On the next $4,000,000             0.15%                  0.45%                   0.60%
        On the next $5,000,000             0.08%                  0.25%                   0.33%
...

Item 7 – Types of Clients

FAM provides services to individuals, qualified retirement plans, trusts, charitable organizations,
corporations and small businesses.

A minimum of $200,000 of assets under management is generally required for the mutual fund and
equity management services (including bond funds). If a client portfolio is under $200,000 in AUM, the
minimum fee will be applied. A separate minimum of $500,000 is generally required for management
services of portfolios of individual fixed income securities. These minimum account sizes may be
negotiable under certain circumstances.