Private Wealth Management LLC

Item 5: Fees & Compensation

Compensation for Advisory Services

Portfolio Management:

The maximum annual fee charged for this service will not exceed 1.50%. PWM’s fees are billed on a
pro-rata annualized basis quarterly in arrears based on the value of your account on the last day of
the quarter. Fees are negotiable and will generally be automatically deducted from your managed
account. In rare cases, we will agree to directly bill clients. Our firm bills on cash unless otherwise
noted in writing. As part of this process, you understand and acknowledge the following:

    a) The client’s independent custodian sends statements at least quarterly showing the market
       values for each security included in the Assets and all account disbursements, including the
       amount of the advisory fees paid to our firm;
    b) Clients will provide authorization permitting our firm to be directly paid by these terms. Our
       firm will send an invoice directly to the custodian; and
    c) If our firm sends a copy of our invoice to the client, a legend urging the comparison of
       information provided in our statement with those from the qualified custodian will be
       included.

Financial Consulting:

Our firm charges on an hourly or flat fee basis for financial consulting services. The total estimated
fee, as well as the ultimate fee charged, is based on the scope and complexity of our engagement with
the client. The maximum hourly fee to be charged will not exceed $500. Flat fees generally start at
$5,000. The fee-paying arrangements will be determined on a case-by-case basis and will be detailed
in the signed consulting agreement. Our firm will not require a retainer exceeding $1,200 when
services cannot be rendered within 6 months.

ADV Part 2A – Firm Brochure                      Page 5                      Private Wealth Management, LLC

Other Fees

Clients will incur transaction fees for trades executed by their chosen custodian via individual
transaction charges. These transaction fees are separate from PWM’s fees and will be disclosed by
the firm that the trades are executed through their custodian. Charles Schwab & Co., Inc. (“Schwab”),
does not charge transaction fees for U.S. listed equities and exchange traded funds.

Clients may also pay holdings charges imposed by the chosen custodian for certain investments,
charges imposed directly by a mutual fund, index fund, or exchange traded fund, which shall be
disclosed in the fund’s prospectus (e.g., fund management fees and other fund expenses), distribution
fees, surrender charges, variable annuity fees, IRA and qualified retirement plan fees, mark-ups and
mark-downs, spreads paid to market makers, fees for trades executed away from custodian, wire
transfer fees and other fees and taxes on brokerage accounts and securities transactions. Our firm
does not receive a portion of these fees.

Refunds Following Termination

We charge our advisory fees quarterly in arrears. If you wish to terminate our services, you need to
contact us in writing and state that you wish to cancel this Agreement Upon receipt of your letter of
termination, we will proceed to close out your account and charge you a pro-rata advisory fee(s) for
services rendered up to the point of termination.

Financial Consulting clients may terminate their agreement at any time by providing written notice.
Termination of this Agreement shall be effective upon receipt of notice. For purposes of calculating
refunds, all work performed by PWM up to the point of termination shall be calculated at an hourly
rate currently in effect. Client will receive a pro-rata refund of unearned fees based on the time and
effort expended by PWM.

Commissionable Securities Sales

We do not sell securities for a commission. In order to sell securities for a commission, we would
need to have our associated persons registered with a broker-dealer. We have chosen not to do so.

Item 7: Types of Clients & Account Requirements

PWM has the following types of clients:
  • Individuals and High Net Worth Individuals;
  • Trusts, Estates or Charitable Organizations;
  • Corporations, limited liability companies and/or other business types.

PWM’s requirements for opening and maintaining accounts or otherwise engaging us:
      We require a minimum aggregate account balance of $250,000 for our Portfolio Management
      service. Generally, this minimum account balance requirement is not negotiable and would
      be required throughout the course of the client’s relationship with PWM.

ADV Part 2A – Firm Brochure                     Page 6                       Private Wealth Management, LLC