Hermitage Wealth Management Inc

Item 5           Fees and Compensation

   A. INVESTMENT MANAGEMENT SERVICES
      HW’s annual investment advisory fee is calculated based on the client’s portfolio value,
      and paid monthly or quarterly, in advance, under the terms and conditions of an Investment
      Management Agreement. Asset-based fee calculations include the value of any accrued
      interest (but not accrued dividends or other earnings or income) and is unadjusted for
      account deposits or withdrawals during the billing period.

         HW’s asset-based fees are negotiable and will vary depending on various objective and
         subjective factors, including (but not limited to): the amount of assets to be managed, the
         scope and complexity of the engagement, the anticipated number of meetings and servicing
         needs, related accounts, future earning capacity, anticipated future additional assets, the
         professional rendering the service, prior or family relationships with HW and its
         representatives. Likewise, HW may combine the account values of family members not
         living in the same household to determine the applicable advisory fee. Combining account
         values may increase the asset total and reduce the investment advisory fee based on the
         available breakpoints in the fee schedule stated below. As a result of these factors, similarly
         situated clients could pay different fees which correspondingly impact a client’s net
         account performance. Moreover, the services to be provided by HW to any particular client
         could be available from other advisers at lower fees, and certain clients may have fees
         different than those specifically set forth below.

         As agreed upon between the client and HW, the client’s agreed upon fee for HW’s services
         will generally fall within the ranges set forth below:

                 Portfolio Value                                              Annual Fee
                 First $0 - $500,000                                          0.90 – 1.50%
                 Next $500,000 ($500,001 - $1,000,000)                        0.80 – 1.35%
                 Next $500,000 ($1,000,001 - $1,500,000)                      0.70 – 1.20%
                 Next $500,000 ($1,500,001 - $2,000,000)                      0.60 – 1.10%
                 Next $2,000,000 ($2,000,001 - $4,000,000)                    0.50 – 1.05%
                 Remaining Assets Exceeding $4,000,001                        Negotiable

         This is a tiered, progressive fee schedule, where the applicable fee rate will be applied to
         each tier of the client’s portfolio, subject to the agreed upon breakpoints. For example, a
         client whose portfolio value is $750,000 would be assessed an annual fee ranging from
         0.90 - 1.50% on the first $500,000 of portfolio value, with the remaining $250,000 assessed
         an annual fee ranging from 0.80 – 1.35%.

         The fee for the first fee period of the client’s engagement will be prorated from the
         inception date to the end of the first fee period. Unless HW expressly agrees otherwise in

writing, account assets consisting of cash and cash equivalent positions are included in the
value of an account’s assets for purpose of calculating this fee. Clients can advise HW not
to maintain (or to limit the amount of) cash or cash equivalent positions in their account.

Fees assessed by the client’s engaged TPMM will be set forth in an agreement between the
client and the engaged TPMM. Similar investment strategies offered through HW can be
offered by more than one provider, including other TPMMs. Clients should be aware that
lower fees for comparable services may be available from other sources. Because a client’s
total fee will generally include both HW’s fee and fees charged by TPMMs, HW may have
an incentive to recommend or select TPMM services offered for lower TPMM fees, in
order to manage the overall fee charged to the client.

When HW acts as a promoter for a TPMM, HW will generally be entitled to receive
revenue-sharing payments from the engaged TPMM. Please see Item 14 below for further
details.

FINANCIAL PLANNING AND CONSULTING SERVICES (STAND-ALONE)
HW’s financial planning and consulting fees are negotiable but can range from $1,000 to
$20,000 on a fixed fee basis depending upon the scope and complexity of the services or
range from $200 to $2,000 per hour if engaged on an hourly rate basis. Before engaging
HW to provide financial planning and consulting services, clients are required to enter into
a Financial Planning Agreement with HW setting forth the terms and conditions of the
engagement (including termination), describing the scope of the services to be provided,
and the portion of the fee that is due from the client before HW will provide services.

RETIREMENT PLAN CONSULTING SERVICES
The terms and conditions of the retirement plan consulting engagement are negotiable. The
agreed upon fee arrangement will be set forth in a Pension Consulting Agreement between
HW and the plan sponsor. HW’s fees for these engagements may be broken into multiple
components, covering different aspects of the overall engagement. HW’s asset-based
advisory fee generally ranges between 0.10% and 1.00% of the value of retirement plan
assets, which advisory fee may be supplemented with additional asset-based or fixed fees,
depending on a number of factors, including (but not limited to) the total scope of services
selected. To the extent fees for retirement plan services exceed 1.00% of plan assets, any
such amount above 1.00% of plan assets is borne by the plan sponsor or employer, as
applicable.

Subject to the limitations described above, and unless otherwise agreed with the client,
clients will authorize the deduction HW’s advisory fees, and any fees incurred through the
use of third-party investment managers, from their custodial account. Client account
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Item 7           Types of Clients

         Our clients are generally individuals, high-net worth individuals, corporations, and other
         businesses. We do not have any minimum asset requirements or minimum fees, but we do
         reserve the right to accept or reject any client. Notwithstanding the foregoing, TPMMs may
         apply their own minimum asset level or minimum fee requirements, which would apply to
         clients of HW. Please see the applicable TPMM’s disclosure documents for details.