Kestrel Wealth Management LLC

Item 5 – Fees and Compensation

A.      Fee Schedule
ASSET MANAGEMENT
Kestrel offers asset management services to advisory Clients. Kestrel charges an annual investment
advisory fee based on the total assets under management as follows:

             Assets Under Management                               Annual Fee

                    First $2,000,000                                 1.00%

                    Next $3,000,000                                  0.80%

                   Over $5,000,000                                   0.65%

This is a blended fee schedule, meaning different asset levels are assessed different fees, as shown
above. The annual fee is negotiable based upon certain criteria (e.g., historical relationship, type of
assets, anticipated future earning capacity, anticipated future additional assets, dollar amounts of
assets to be managed, related accounts, account composition, negotiations with Clients, etc.). Fees
are billed monthly in arrears based on the amount of assets managed as of the close of business on
the last business day of the previous billing period. Lastly, please note that Kestrel may group certain
related Client accounts, often known as “householding”, for the purposes of achieving the minimum
account size and determining the annualized fee.

B.     Payment of Fees
Asset Management Fees are deducted directly from the Client’s Account.

Kestrel, in its sole discretion, may charge a lesser investment advisory fee based upon certain criteria
(e.g., historical relationship, type of assets, anticipated future earning capacity, anticipated future
additional assets, dollar amounts of assets to be managed, related accounts, account composition,
negotiations with Clients, etc.).

Clients may terminate their engagement with Kestrel within five (5) business days of signing an
Agreement with no obligation and without penalty. After the initial (5) business days, the Agreement
may be terminated by Kestrel with thirty (30) days written notice to Client and by the Client at any
time with written notice to Kestrel. For accounts opened or closed mid-billing period, fees will be
prorated based on the days services are provided during the given period. In the case of hourly
engagements, fees will be prorated based on the work completed at the stated hourly rate. All unpaid
earned fees will be due to Kestrel and all unearned fees will be refunded to the Client. Any increase
in fees will be acknowledged in writing by both parties before any increase in said fees occurs.

C.      Additional Fees
Custodians may charge brokerage commissions, transaction fees, and other related costs on the
purchases or sales of mutual funds, equities, bonds, options, margin interest, and exchange-traded
funds. Mutual funds, money market funds, and exchange-traded funds may also charge internal
management fees, which are disclosed in the fund’s prospectus. Kestrel does not receive any
compensation from these fees. All of these fees are in addition to the management fee you pay to
Kestrel. For more details on the brokerage practices, see Item 12 of this brochure.

D.      Prepayment of Fees
Kestrel does not expect Clients to prepay fees.

E.      External Compensation for the Sale of Securities
Kestrel does not receive any external compensation from the sale of securities.

Item 7 – Types of Clients & Account Minimums

Kestrel’s Clients are generally individuals, small businesses, trusts, estates, high net-worth
individuals, and charities. Client relationships vary in scope and length of service.

There is no minimum account size and Clients are not required to have a certain amount of
investment experience or sophistication.