Precedent Asset Management LLC

Item 5 Fees and Compensation
Portfolio Management Services
Our fee for portfolio management services is based on a percentage of the value of your account we
manage. Our Portfolio Management fee is calculated based upon the market value of your assets in the
accounts subject to the agreement as of the last day of the prior quarter using the following schedule:

       Quarterly Fee on Account Value
       0.25% (1.00% annually) on the first $2,000,000
       0.20% (0.80% annually) on the next $3,000,000
       0.15% (0.60% annually) on the next $3,000,000
       0.125% (0.50% annually) over $8,000,000

Other fee schedules may be in place for certain clients, as negotiated at the beginning of the client
relationship with our firm.

Our annual portfolio management fee is payable quarterly in arrears based on the value of your account
on the last day of the quarter. If the portfolio management agreement is executed at any time other than
the first day of a calendar quarter, our fees will apply on a pro rata basis, which means that the advisory
fee is payable in proportion to the number of days in the quarter for which you are a client. Our advisory
fee is negotiable, depending on individual client circumstances.

We will combine the account values within the same fee household to determine the applicable advisory
fee. Fee households are identified as all individual investor accounts reported on the same tax return,
which typically includes spouses, children, IRAs, and revocable trusts. Irrevocable trusts, spouses and
partners filing separately, and employer retirement accounts are examples of accounts that are not on
the same tax return and therefore not combined for fee thresholds. Institutional accounts with distinct

investment policies are also not combined. Combining account values may increase the asset total,
which may result in your paying a reduced advisory fee.

We will send you an invoice for the payment of our advisory fee, or we will deduct our fee directly from
your account through the qualified custodian holding your funds and securities. We will deduct our
advisory fee only when you have given our firm written authorization permitting the fees to be paid directly
from your account. Further, the qualified custodian will deliver an account statement to you at least
quarterly. These account statements will show all disbursements from your account. You should review
all statements for accuracy.

You may terminate the portfolio management agreement upon 30-days' written notice to our firm. You
will incur a pro rata charge for services rendered prior to the termination of the portfolio management
agreement, which means you will incur advisory fees only in proportion to the number of days in the
quarter for which you are a client. We encourage you to review the statement(s) you receive from the
qualified custodian. If you find any inconsistent information, please call our main office number located
on the cover page of this brochure.

Financial Planning and Consulting Services
For clients requiring financial planning, we charge a fixed fee ranging from $3,500 to $15,000 upfront,
and $7,500 to $30,000 annually, based on the complexity of the client's situation. This fee is payable in
quarterly installments with the upfront portion due at inception, and then quarterly in arrears thereafter
for the remainder of the engagement. Clients may make ongoing in arrears payments on a monthly basis
if needed to accommodate their household cash flow.

We also offer financial planning and consulting services on an hourly fee basis at $350 per hour billed in
6-minute increments. A reduced hourly rate may apply as agreed upon and reflected in the agreement
signed with our firm. Additionally, a reduced hourly rate may apply for administrative and associate
services, as reflected in the agreement signed with our firm. An estimate of the total time/cost may be
determined at the start of the advisory relationship and an appropriate retainer and minimum
established. Hourly fees are billed at least monthly, or as the services are rendered.

Other fee schedules may be in place for certain clients, as negotiated at the beginning of the client
relationship with our firm.

We will send you an invoice for the payment of our advisory fee, or we will deduct our fee directly from
your account through the qualified custodian holding your funds and securities. We will deduct our
advisory fee only when you have given our firm written authorization permitting the fees to be paid directly
from your account. Further, the qualified custodian will deliver an account statement to you at least
quarterly. These account statements will show all disbursements from your account. You should review
all statements for accuracy.

The fees for our financial planning and consulting services are negotiable depending upon the complexity
and scope of the plan, your financial situation, and your objectives. If we require that you make an
advance payment in excess of $500, all services will be rendered and completed within six months from
the date of engagement. Should the engagement last longer than six months between acceptance of
financial planning agreement and delivery of the financial plan, any prepaid unearned fees will be
promptly returned to you less a pro rata charge for bona fide financial planning services rendered to
date. In our sole discretion, we reserve the right to negotiate other fee-paying arrangements.

You may terminate the financial planning agreement by providing written notice to our firm. You will incur
a pro rata charge for services rendered prior to the termination of the agreement. If you have prepaid
advisory fees that we have not yet earned, you will receive a prorated refund of those fees.

Divorce Planning and Consulting Services
Divorce planning and consulting services are provided on an hourly fee basis at $450 per hour billed in
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Item 7 Types of Clients
We offer investment advisory services to individuals, high net worth individuals, pension and profit-
sharing plans, trusts, estates, charitable organizations, corporations, and other business entities.

In general, we require a minimum of $500,000 to open and maintain an advisory account. At our
discretion, we may waive this minimum account size. For example, we may waive the minimum if you
appear to have significant potential for increasing your assets under our management. We may also
combine account values for you and your minor children, joint accounts with your spouse, and other
types of related accounts to meet the stated minimum.