Spectra Investment Management LLC

Item 5 – Fees and Compensation
Portfolio Management Services

Spectra charges an annual fee based upon a percentage of the market value of the assets being managed.
We charge the following annualized asset management fees:

                                      Assets Under Management    Annual Fee
                                        First    $2,000,000        1.25%
                                        Next     $3,000,000        1.00%
                                        Next     $5,000,000        0.75%
                                        Next    $15,000,000        0.65%
                                        Over    $25,000,000        0.35%

Portfolio management fees may be negotiable depending on factors such as the amount of assets under
management, degree of financial planning, range of investments, and complexity of your financial
circumstances, among others. Since this fee is negotiable, the exact fee paid by you will be clearly stated in
the advisory agreement signed by you and us.

8 | Form ADV Part 2A: Firm Brochure

Portfolio management fees are billed monthly, in arrears, and are based on the value of your portfolio at
the end of the preceding month. If you provide written authorization to us, the advisory fee will be deducted
from your account held with a non-affiliated qualified custodian. The qualified custodian will provide you
with an account statement at least quarterly. This statement will detail all account activity, including the
advisory fees deducted from your account(s).

Our annual fee is exclusive of, and in addition to, brokerage commissions, transaction fees, and other related
costs and expenses. You are responsible for brokerage costs incurred. However, Spectra will not receive any
portion of the commissions, fees, and costs. Please see Item 12 – Brokerage Practices for further information
on brokerage and transaction costs.

At the inception of investment management services, the first pay period’s fees will be calculated on a pro-
rata basis. The management agreement between you and Spectra will continue in effect until either party
terminates the management agreement in accordance with the terms of the management agreement.
Spectra’s annual fee will be pro-rated through the date of termination. Refunds are not applicable since all
portfolio management fees are payable in arrears.

Spectra may charge a negotiated fee on hedge funds and private equity funds. This fee will be negotiated
on a case-by-case basis and may be discounted based on the frequency of valuation by the underlying fund
managers. The exact fee paid by the Client will be clearly stated in a document signed by the Client and us.
Spectra will not receive any renumeration from these funds, or any other investment funds recommended
to Clients.

Spectra treats cash and cash equivalents as an asset class. Accordingly, unless otherwise agreed in writing,
all cash and cash equivalent positions (e.g., money market funds, etc.) are included as part of assets under
management for purposes of calculating Spectra’s advisory fee. At any specific point in time, depending
on perceived or anticipated market conditions/events (there being no guarantee that such anticipated
market conditions/events will occur), the firm may maintain cash and/or cash equivalent positions for
defensive, liquidity, or other purposes. While assets are maintained in cash or cash equivalents, such
amounts could miss market advances and, depending upon current yields, at any point in time, Spectra’s
advisory fee could exceed the interest paid by the client’s cash or cash equivalent positions.

Spectra has a fiduciary duty to provide services consistent with the client’s best interest. As part of its
investment advisory services, Spectra will review client portfolios on an ongoing basis to determine if any
changes are necessary based upon various factors, including but not limited to investment performance,
fund manager tenure, style drift, account additions/withdrawals, the client’s financial circumstances, and
changes in the client’s investment objectives. Based upon these and other factors, there may be extended
periods of time when Spectra determines that changes to a client’s portfolio are neither necessary nor
prudent. Notwithstanding, unless otherwise agreed in writing, Spectra’s annual investment advisory fee will
continue to apply during these periods, and there can be no assurance that investment decision made by
Spectra will be profitable or equal any specific performance level(s).

9 | Form ADV Part 2A: Firm Brochure

Financial Planning Services

For limited scope financial planning services Spectra does charge a fixed fee that is calculated by multiplying
our negotiable hourly rate of $500 by the estimated amount of time needed to complete the financial
planning project.

If you engage us for additional investment advisory services, Spectra may offset all or a portion of its fees
for those services based upon the amount paid for financial planning services.

Prior to engaging Spectra to provide financial planning services, you will be required to enter into a written
financial planning agreement with us. The financial planning will set forth the terms and conditions of the
engagement and will describe the scope of the services to be provided. Generally, fees are due upon
completion of the agreed upon services. Other fee payment arrangements may be negotiated on a case-
by-case basis. All such arrangements will be clearly set forth in the financial planning agreement signed by
you and us.

Either party may terminate the financial planning agreement by written notice to the other. Since all
planning fees are payable in arrears, refunds are not applicable.

Financial Planning Retainer Services

Spectra offers ongoing planning and consulting services on an annual basis that may include periodic
meetings with Clients to review progress towards stated goals, a review of asset performance,
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Item 7 – Types of Clients
We generally offer investment advisory services to high net worth individuals and other individuals, trusts,
estates, foundations, and other charitable organizations, limited liability companies, corporations, pension
and profit-sharing plans and other business entities.

We require a minimum of $5,000,000 to establish an advisory relationship. At our sole discretion, we may
waive this requirement. This requirement can be met by combining two or more accounts owned by you or
related family members.