Fountainhead Capital Management LLC

Item 5 – Fees and Compensation

Fountainhead offers its services on a fee basis, which may include fixed fees as well as fees based upon
assets under management. Many of the individuals associated with us maintain other financial industry
affiliations that generate additional revenue to them. This can create a conflict of interest; more
information about the conflicts, and how we mitigate them, appears below.

Financial Planning and Pension Consulting Fees
Fountainhead charges a fixed fee for financial planning or pension consulting services. These fees are
negotiable, but generally range between $2,500 to $15,000, depending on the level and scope of the
services and the professional providing the financial planning or pension consulting services. In some
cases, fees may be higher or lower than the range shown, but our most common initial planning fee is
approximately $2,500. The applicable fees are detailed in the Agreement.

As part of the planning engagement, we may recommend that clients engage Fountainhead for
ongoing asset management, or that the client purchase insurance products through Fountainhead
representatives who are also insurance licensed. Following these recommendations will result in our
insurance-licensed affiliate and our representatives earning more compensation. Clients are never
obligated to implement our advice through Fountainhead or its representatives.

Prior to engaging us to provide financial planning or pension consulting services, the client is required
to enter into a written agreement setting forth the terms and conditions of the engagement. We
generally require one-half of the fee, payable upon our acceptance of the Agreement. The balance
is typically due upon delivery of the financial plan or completion of the agreed services.

Fees for Investment Management Services
Fountainhead provides investment management services for an annual fee based on a percentage
of the market value of the assets under management (“Advisory Fee”). Our Advisory Fee is exclusive
of, and in addition to, brokerage commissions, transaction fees, and other related costs and
expenses incurred by the client, such as miscellaneous fees or charges by the custodian for services

                                Fountainhead Capital Management, LLC
                                          Form ADV Part 2A

such as wiring fees, fees for portfolio transactions executed away from the custodian or not pursuant
to an asset-based brokerage fee, dealer mark-ups, electronic fund and wire transfers, spreads paid to
market-makers and exchange fees. Fountainhead does not receive any portion of these commissions,
fees, and costs. See Item 12, Brokerage Practices, for additional information.

Our Advisory Fee is prorated for partial quarters and charged quarterly, in advance, based upon the
market value of the assets under our management on the last day of the previous quarter, as reported
by the qualified custodian holding the assets. Fountainhead does not value assets for fee billing
purposes. The annual Advisory Fee varies depending on the market value of the assets under
management and the type of investment management services to be rendered.

Primary Advisor Fee Schedule

             Assets Under Management                                 Annual Advisory Fee
                     First $250,000                                     Up to 1.45%
                    Next $250,000                                       Up to 1.35%
                    Next $500,000                                       Up to 1.25%
                   Next $1.5 million                                    Up to 1.15%
           Additional assets over $2.5 million                          Up to 1.05%

FAM provides direct management services for most of our clients and receives a negotiated portion
of the above fee. The fees we pay to FAM are deducted from our Advisory Fee, not charged in addition
to it.

Fountainhead may choose to negotiate any of our own fees, including Advisory Fees for Investment
Management Services, and Reporting & Administrative Fees. The actual fees agreed to with a given
client is specified in the Agreement.

Fees for unaffiliated Sub-Advisors may or may not be negotiable, but typically are not. In most cases,
the Sub-Advisors used have agreed to a specified rate for Fountainhead clients and further negotiation
is not an option. While we retain the right to negotiate or not negotiate lesser fees, in our sole discretion,
the factors we usually consider include type of account, anticipated future earning capacity,
anticipated future additional assets, dollar amount of assets to be managed, related accounts,
account composition, pre-existing client, account retention, pro bono activities, etc.

The amount of fees we charge for selecting and overseeing private placements may be lower than
our standard fees as a result of the illiquidity of these investments. Similarly, the pricing method used
may be different due to the lack of secondary market pricing. We will identify any deviation from our
standard fee practice at the time of investment, if applicable.

Reporting & Administrative Fees
Certain legacy clients are charged a Reporting & Administrative fee of up to $150 per account. In all
instances where we charge such a fee, the overall household fee, inclusive of the Reporting &
Administrative fee, is equal to or below the above stated maximum Primary Advisor Fee schedule.

                               Fountainhead Capital Management, LLC
                                         Form ADV Part 2A

Sub-Advisory Fees
As previously described, we engage third party Sub-Advisors to provide discretionary asset
management services to our clients. Where we allocate assets to FAM, we identify the total fees
charged and FAM is paid from that total. For all other Sub-Advisors, an additional and separate asset-
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Item 7 - Types of Clients

We provide services to individuals, pension and profit-sharing plans, individual IRA and 401K
accounts, trusts, estates, charitable organizations, corporations and business entities.

Minimums Imposed by Sub-Advisors
We do not impose a minimum portfolio size or minimum annual fee. Some of the Sub-Advisors we
use may, however, impose more restrictive account requirements than Fountainhead. In such
instances, Fountainhead will follow the Sub-Advisor’s minimum and will not select that Sub-Advisor for
any client not meeting the minimum.

                               Fountainhead Capital Management, LLC
                                         Form ADV Part 2A