Heritage Asset Management LLC

Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
 ASSET MANAGEMENT
 Heritage charges an annual investment advisory fee based on the total assets under
 management as follows:
                Assets Under Management                       Annual Fee
                       Up to $25,000                            2.00%
                   $25,000.01 to $50,000                        1.75%
                  $50,000.01 to $100,000                        1.50%
                   $100,000.01 and Over                         1.25%
 This is a breakpoint fee schedule where the entire portfolio is charged the same asset
 management fee. The annual fee is negotiable. Accounts within the same household may be
 combined for a reduced fee. Lower fees for comparable services may be available from
 other sources. Heritage will charge an advisory fee based on the above schedule for the
 services we provide. OPS does not receive any portion of the advisory fee charged by
 Heritage. The investment management fees charged by OPS are exclusive of, and in
 addition to, Heritage’s investment advisory fee set forth above. The fees are charged
 monthly in arrears and are based on the average daily account balance for the period for
 the prior month.
 Fees for OPS services include:
   •   Administration Fees (reporting and accounting services – ranging from 0.08% -
       0.45%),
   •   Account Maintenance Fees (Electronic Delivery $25/sleeve or account; Paper
       Delivery: $50 for first sleeve and $25/additional sleeve for single sleeved account OR
       $50/account for separate accounts), and
   •   Strategist Fees (range from 0.0% to 0.70%),
 Client will sign an Agreement with OPS that details the fees charged by OPS. OPS and
 Heritage asset management fees are calculated based on the average daily balance (“ADB”)
 of the month. Please note it is an average. For example, if the account was initially funded
 on the 20th of the month, the ADB is significantly lower than the monthly ending balance of
 the account because the account value was zero for the first nineteen days of the billing
 period. All OPS or Heritage fees that are calculated as a percentage of the Client’s assets
 under management are calculated using the following formula: Monthly fee = (Annual
 percentage fee) * monthly ADB of Account * (Days in Billing Cycle/365)
 All fees are automatically calculated and deducted from the Client’s account by OPS; OPS
 will pay Heritage their portion of the fees. Heritage does not have the ability to directly
 deduct their advisory fee from the Client account.
 Clients may terminate their account within five (5) business days of signing the Investment
 Advisory Agreement with no obligation. For accounts closed mid-month, Heritage and OPS
 will be entitled to a pro rata fee for the days service was provided in the final month. Client
 shall be given thirty (30) days prior written notice of any increase in fees. Any increase in
 fees will be acknowledged in writing by both parties before any increase in said fees
 occurs.

ASSETS UNDER ADVISEMENT
Fees for these services will be based on a percentage of Assets Under Management. The
annual fee will not exceed 1%. Fees will be paid in arrears every quarter. Fees are either
deducted from the Client’s account, if available, or Client will be provided an invoice at the
commencement of services payable within ten (10) days of receipt. Clients may choose to
pay Heritage directly or have the amount deducted from another account managed by
Heritage. Clients may terminate their account within five (5) business days of signing the
Investment Advisory Agreement with no obligation and without penalty. If the Client
cancels after five (5) business days, any unearned fees will be refunded to the Client, or any
unpaid earned fees will be due to Heritage.
ERISA PLAN SERVICES
The annual fees are based on the market value of the Included Assets and will not exceed
1%. The annual fee is negotiable and will be charged as a percentage of the Included Assets.
Fees may be charged quarterly or monthly in arrears or in advance based on the assets as
calculated by the custodian or record keeper of the Included Assets (without adjustments
for anticipated withdrawals by Plan participants or other anticipated or scheduled
transfers or distribution of assets). If the services to be provided start any time other than
the first day of a quarter or month, the fee will be prorated based on the number of days
remaining in the quarter or month. If this Agreement is terminated prior to the end of the
billing cycle, Heritage shall be entitled to a prorated fee based on the number of days
during the fee period services were provided or Client will be due a prorated refund of fees
for days services were not provided in the billing cycle.
The fee schedule, which includes compensation of Heritage for the services is described in
detail in Schedule A of the ERISA Plan Agreement. The Plan is obligated to pay the fees,
however the Plan Sponsor may elect to pay the fees. Client may elect to be billed directly or
have fees deducted from Plan Assets. Heritage does not reasonably expect to receive any
additional compensation, directly or indirectly, for its services under this Agreement. If
additional compensation is received, Heritage will disclose this compensation, the services
rendered, and the payer of compensation. Heritage will offset the compensation against the
fees agreed upon under the Agreement.
FINANCIAL PLANNING AND CONSULTING
Heritage charges either a fixed fee or hourly fee for financial planning and consulting
services. Prior to the planning process the Client will be provided an estimated plan fee.
Services are completed and delivered inside of ninety (90) days contingent on the timely
receipt of all applicable documents from the Client. Client may cancel within five (5) days of
...

Item 7: Types of Clients
Description
 Heritage generally provides investment advice to individuals, high net worth individuals,
 trusts or estates. Client relationships vary in scope and length of service.
Account Minimums
 Heritage does not require a minimum to open an account.