Heirloom Wealth Management LLC

ITEM 5 - FEES AND COMPENSATION
Investment Management Fees and Compensation
Our Firm charges a fee as compensation for providing Investment Management services
on your account. These services include advisory services, trade entry, investment
supervision, and other account-maintenance activities. Our custodian charges transaction
costs, custodial fees, redemption fees, retirement plan and administrative fees or
commissions. See Additional Fees and Expenses below for additional details.

The fees for investment management are based on an annual percentage of assets under
management and are applied to the household asset value on a pro-rata basis and billed
monthly in arrears. The monthly fee will be calculated on the average monthly balance of
the account. The value will be determined as reported by the Custodian. Fees are assessed
on all assets under management, including securities, cash and money market balances.
Margin account balances are not included in the fee billing. There may be a possibility for
price or account value discrepancies due to quarter-end transactions in an account.
Dividends or trade date settlements may occur and our third party billing software may
report a slight difference in account valuation at quarter end compared to what is reported
on your Statement from the Custodian. Our firm has the ability to produce billing
summaries, which can be provided upon request.

                                 Heirloom Wealth Management, LLC
                                       FORM ADV 2A Brochure

Our maximum investment advisory fees as a percentage of assets under management is
1.75%. For some clients, our firm offers a flat fee ranging from $1,000 to $20,000 depend-
ing on the level of engagement. The specific advisory fees are set forth in your Investment
Advisory Agreement.

We may negotiate a lower advisory fee or have the right to waive the minimum fee. Fees
may vary based on the size of the account, complexity of the portfolio, extent of activity in
the account or other reasons agreed upon by us and you as the client. In certain
circumstances, our fees and the timing of the fee payments may be negotiated. Our
employees and their family related accounts are charged a reduced fee for our services.

Unless otherwise instructed by the Client, we will aggregate related client accounts for the
purposes of determining the account size and annualized fee. The common practice is
often referred to as “house-holding” portfolios for fee purposes and may result in lower
fees than if fees were calculated on portfolios separately. Our method of house-holding
accounts for fee purposes looks at the overall family dynamic and relationship. When
applicable and noted in the Investment Management Agreement, legacy positions will also
be excluded from the fee calculation.

The independent qualified custodian holding your funds and securities will debit your
account directly for the advisory fee and pay that fee to us. You will provide written
authorization permitting the fees to be paid directly from your account held by the
qualified custodian. Further, the qualified custodian agrees to deliver an account
statement to you on a monthly basis indicating all the amounts deducted from the account
including our advisory fees.

Either HWM or you may terminate the Investment Advisory Agreement immediately upon
written notice to the other party. The management fee will be pro-rated to the date of
termination, for the month in which the cancellation notice was given and the unearned
fee refunded to your account as indicated in your Agreement. Upon termination, you are
responsible for monitoring the securities in your account, and we will have no further
obligation to act or advise with respect to those assets. In the event of client’s death or
disability, HWM will continue management of the account until we are notified of client’s
death or disability and given alternative instructions by an authorized party.

Financial Planning Fees
Financial Planning Services are offered through a separate fee unless negotiated otherwise
by the Firm. Fees may vary based on the extent and complexity of your individual or family
circumstances. Our fee will be agreed in advance of services being performed and negoti-
ated with you. Financial planning fees are fixed fees. 50% if the fees are billed upon engage-
ment and the remaining 50% are billed at time of delivery. Fixed fees range from $2000-
$5000 and may be more depending on the complexity of the engagement. The specific fee

                                 Heirloom Wealth Management, LLC
                                       FORM ADV 2A Brochure

for your financial plan will be discussed with you and specified in your planning agreement
with the Firm.

Typically, we complete the plan and present it to you within 90 days of the contract date, if
you have provided us all information needed to prepare the financial plan.

If you choose to terminate your financial planning agreement, you must provide the Firm
with written notice. Upon termination, fees will be prorated through the date of termina-
tion. Any portion of the fee that has been earned will be billed to you based on the actual
hours our Firm has spent preparing your financial plan prior to termination. The hourly
rate of $200-500 will be applied for this calculation and is specified in your executed Finan-
cial Planning Agreement.

Example:
If you terminate your agreement after 5 hours of work have been completed, you will be
billed $2,500 (5 hours × $500/hour) for the services rendered up to the termination date.
Any prepaid portion of the planning fee will offset the final planning fee.

Employer Sponsored Retirement Plan Services
For Retirement Plan Advisory Services compensation, we charge an annual fee as negoti-
ated with the client and disclosed in the Employer Sponsored Retirement Plans Investment
Advisory Agreement. The compensation method is explained and agreed upon in advance
...

ITEM 7 - TYPES OF CLIENTS
We provide investment advice to individuals, high-net worth individuals, employee
sponsored retirement plans, institutions, charitable organizations, trusts and estates. We
have no minimum initial household value for opening accounts.