Hunter Lewis LLC

Item 5 - Fees and Compensation

The fees we receive from our clients represent our only income. We do not receive any
compensation from anyone other than our own clients.

Our firm charges a fixed dollar fee for our service. This fee is set client-by-client and could be
affected by a variety of factors at the discretion of the firm, but has never exceeded a dollar amount
equal to 4/10 of 1% of initial or subsequently contributed investment capital. Our overall goal is for
all client investment costs, including our fee, to represent less than 1%, usually a good deal less
than 1%, of client investable assets placed under our care. Discounted fees apply for our company
founder, foundations established by our founder (we may perform our services without charge to
certain foundations, to avoid any suggestion that our firm is benefiting financially from a pre-existing
relationship with a non-profit foundation established by our founder), or our employees, and may
apply to other clients with personal relationships with our founder, such as friends and relatives.

We do not usually advise clients on the hiring of another investment manager. At the request of a
client, we might do so. In that event, the outside investment manager’s bill would normally come
directly to the client. Any fees charged by an outside investment manager will be in addition to our

        HUNTER LEWIS LLC F IRM BROCHURE | FORM ADV PART 2A                                                   8

own fee. Our own fee will not increase if a client has one or more outside managers as part of its
program.

Our fixed dollar fee will be billed in arrears, usually quarterly. Clients beginning during a quarter will
have their first bill prorated. The fixed dollar fee may increase in future years by up to 5% per year
with prior notice to the client. As discussed below, clients need not accept any such increase and
may terminate our services, without fee or penalty, at any time with prior written notice.

If there is no fee increase in a given year, we may apply the deferred increase with written notice in
a subsequent year. This may be in addition to the up to 5% increase with notice in the subsequent
year. There may be circumstances in which we propose to increase the fee by more than 5%
cumulative per year. In this case, we will ask the client for prior written consent and not proceed
until such written consent has been obtained.

If a client contributes capital assets to the account, the fee will be increased by an initial 0.4% of
added assets. If a client withdraws funds over and above original or contributed capital (appreciated
capital) during a given year, there is no change in the fee. If the client further withdraws funds
during a given year representing over 10% of original or contributed capital assets (appreciated
capital,) on which the fee has been calculated, the fee will be adjusted downward by 0.4% of
withdrawn initial or contributed capital assets. For example, the legally required 5% withdrawal for
program purposes by a private foundation would not qualify as a capital withdrawal reducing the
fee.

We believe that the predictability and stability of our fixed fee arrangement are advantageous for
both our clients and our firm. Percent of assets fees mean that an investment manager’s revenue
can rise or fall sharply at any time. Knowing that fees may plunge along with the market has the
potential to create an incentive for the investment manager to set its fee very high to start, so that
even after a sharp market fall there is enough revenue to cover expenses. Possibly as a result, profit
margins of investment management firms have historically been very high, and if the market rises,
these high profit margins just expand further. Historically, asset values in the U.S. have risen more
than they have fallen, so a percent of assets fee has increased the profits of investment managers
which have survived the ups and downs.

There have, however, been times in the past when fees paid by clients to investment managers
have fallen because of declining market values. In this case, clients would pay more with our fixed
fee than they would with a percent of assets fee, at least until markets have recovered, which could
take an extended period of time.

By offering a fixed dollar fee, we intend both to make it possible for us to keep our fee as low as we
can, because high fees are a serious impediment to good long-term results for our clients, and also
to create a more predictable situation for both our clients and ourselves. We also believe that this
predictability and stability, in particular not having to worry about whether our client revenues will
suddenly fall below our expenses in offering our services, will help us make decisions solely in the
client’s best interest.

      HUNTER LEWIS LLC F IRM BROCHURE | FORM ADV PART 2A                                                 9

Following client written approval of the arrangement, our fee is typically deducted from one or more
of our client’s custodial accounts. Following preparation of our bill, the client’s custodian will provide
at least quarterly statements to the client confirming withdrawals for the payment of our fees.

In addition to our fees, clients will have to pay their own brokerage, custody, and return calculation
fees in connection with implementing any strategy we recommend.

Other Fees and Expenses

We may hire one or more outside firms to provide services directly to our firm and indirectly to our
clients. For example, we may license financial planning software from a third-party vendor. Where
such services are for the benefit of our firm as a whole, we will pay for those services directly. In
those cases, we will not charge our clients for those services and we will not seek reimbursement for
them.

Whenever we utilize a financial planning or other software product or any other outside product or
...

Item 7 - Types of Clients
As noted above, we offer services to private clients, families, endowed institutions, and pension
plans. As of the date of this Brochure, we currently provide services to clients in the first three
categories.

As noted under Fees, and as of the date of this Brochure, not all of our clients are “qualified
purchasers” (as defined in Section 2(a)(51) of the Investment Company Act of 1940) with
investment funds of $5mm or more nor “qualified clients” (as defined in Rule 205-3 under the
Investment Advisers Act of 1940) with at least $1.1mm of assets managed by us or investment
funds of $2.2mm or more. Minimum account size requirements are considered on a case by case
basis. We provide strategy advice to accounts of varying sizes and there is no fixed minimum
account size. At the present time, we do not usually manage client portfolios with less than $0.5mm
of assets. Our goal (see above) of keeping total client investment expenses below 1% is very
important to us.