Pine Haven Investment Counsel Inc

Item 5: Fees and Compensation

Investment Advisory Services - Initial Fee
To reflect the importance of the Investment Counsel portion of our services, we charge an initial fee
based on the complexity of the client’s situation. The range of Initial Fees is between $1,000 and
$10,000. The complexity is determined by a variety of factors including marital status, number and
type of accounts, family structure and services needed. This amount will be quoted to the client in
advance. A deposit may be required to begin work.

Investment Advisory Services - Ongoing Fees
Ongoing fees are usually calculated as a percentage of assets under management. Occasionally, we
set a fixed annual amount.

Our standard fee schedule for client discretionary advisory services on an annual basis is as follows:

                   Total Assets Under Management                Annual Fee
                           First $1,000,000                       = 1.00%
                           Next $1,000,000                        = 0.75%
                           Next $3,000,000                        = 0.50%
                        Assets over $5,000,000                  = negotiable

Fees are charged quarterly, in arrears and based on a percentage of your assets, including cash, for
the recent past quarter. You are billed based on the account value at the end of the calendar
quarter.

Occasionally, individuals will negotiate a flat fee (for example, $2,500 per quarter). The amount
charged will depend on your account size and your unique situation.

Financial Planning Services
Standalone financial planning or special project fees will be charged in one of two ways:

   •   As a fixed fee, typically ranging from $1,500 to $10,000, depending on the nature and
       complexity of each client’s circumstances, or
   •   On an hourly basis of $500 per hour, with a minimum of $1,000.

A deposit may be required before any work is started.

Calculation and Payment
Generally, fees are deducted directly from your account(s) at the end of each quarter, unless
otherwise agreed. You may also elect to be billed directly. Whether your fee is deducted from your

account(s) or billed separately, your payment terms are specified in your agreement with us.
Advisory fees are prorated for contributions or withdrawals made during the quarter. Accounts
initiated or terminated during a calendar quarter will be charged a prorated fee. Our client
agreement may be terminated at any time by written notice to the other party. Upon termination,
the fee will be prorated based upon the period of management. If terminated within 5 days of
signing the contract, no fees will be charged.

Cash Balances
Some of your assets may be held as cash and remain uninvested. Holding a portion of your assets in
cash and cash alternatives, i.e., money market fund shares, may be based on your desire to have an
allocation to cash as an asset class, to support a phased market entrance strategy, to facilitate
transaction execution, to have available funds for withdrawal needs or to pay fees or to provide for
asset protection during periods of volatile market conditions. Your cash and cash equivalents will be
subject to our investment advisory fees unless otherwise agreed upon. You may experience negative
performance on the cash portion of your portfolio if the investment advisory fees charged are higher
than the returns you receive from your cash.

Retirement Plan Rollover Recommendations
As part of our investment advisory services to our clients, we may recommend that clients roll assets
from their employer’s retirement plan, such as a 401(k), 457, or ERISA 403(b) account (collectively, a
“Plan Account”), to an individual retirement account, such as a SIMPLE IRA, SEP IRA, Traditional IRA,
or Roth IRA (collectively, an “IRA Account”) that we will advise on the client’s behalf. We may also
recommend rollovers from IRA Accounts to Plan Accounts, from Plan Accounts to Plan Accounts, and
from IRA Accounts to IRA Accounts.

If the client elects to roll the assets to an IRA that is subject to our advisement, we will charge the
client an asset-based fee as set forth in the advisory agreement the client executed with our firm.
This creates a conflict of interest because it creates a financial incentive for our firm to recommend
the rollover to the client (i.e., receipt of additional fee-based compensation). Clients are under no
obligation, contractually or otherwise, to complete the rollover. Moreover, if clients do complete the
rollover, clients are under no obligation to have the assets in an IRA advised on by our firm. Due to
the foregoing conflict of interest, when we make rollover recommendations, we operate under a
special rule that requires us to act in our clients’ best interests and not put our interests ahead of
our clients.’

Under this special rule’s provisions, we must:

   •   meet a professional standard of care when making investment recommendations (give
       prudent advice);
   •   never put our financial interests ahead of our clients’ when making recommendations (give
       loyal advice);
   •   avoid misleading statements about conflicts of interest, fees, and investments;
   •   follow policies and procedures designed to ensure that we give advice that is in our clients’
       best interests;

   •    charge no more than a reasonable fee for our services; and
   •    give clients basic information about conflicts of interest.

Many employers permit former employees to keep their retirement assets in their company plan.
Also, current employees can sometimes move assets out of their company plan before they retire or
change jobs. In determining whether to complete the rollover to an IRA, and to the extent the
following options are available, clients should consider the costs and benefits of a rollover. Note that
an employee will typically have four options in this situation:

   1.   leaving the funds in the employer’s (former employer’s) plan;
...

Types of Clients
We provide investment advisory and financial planning (investment counsel) services to high-net-
worth individuals, individuals and families and their associated small business retirement plans,
charitable institutions, foundations, and endowments.

Account Minimums
We charge an annual minimum fee of $5,000 ($1,250 a Quarter). This corresponds to a minimum
asset level of $500,000. This may be negotiable under certain circumstances. For example: if you are
regularly and automatically adding funds to your account(s), if your assets are in 401K (or other
company retirement plan) or you have been referred by a client who is family member. For
Investment Management Only, the minimum fee is $2,500. Some existing clients may be at a lower
fee. Additionally, we may group certain related client accounts for the purposes of achieving the
minimum account size.