Abbot Financial Management Inc

Item 5: Fees and Compensation

We base our fees on a percentage of assets under management, as described below.

Compensation - Asset Management
Annual fees are payable in advance quarterly and may, if authorized, be deducted directly from
client accounts. The fees are based upon a percentage of the market value of assets under
management including cash and cash equivalents at time of the appraisal which is the close of
the calendar month.

                           Assets Under Management Annual Fee
                                First $1,000,000      1.25%
                            $1,000,001 to $3,000,000  1.00%
                            $3,000,001 to $5,000,000  0.75%
                           $5,000,001 to $10,000,000+ 0.50%

Investment advisory agreements can be terminated by either party within 30 days after written
notice; the unearned portion of a prepaid fee will be refunded on a prorated basis.

Compensation - Financial Planning
We may provide financial and estate planning advice to our asset management clients, at no
additional fee. Services may be provided both on an ongoing or a one-time basis based on the
client’s goals, needs and objectives.

Compensation - Retirement Plan Consulting
We charge an annualized fee of 0.35% to 0.50% of the plan's assets for the retirement plan
consulting services, generally payable quarterly in arrears and paid by Plan Sponsors. Alternatively,
we charge a fixed fee for these services, to be negotiated on a case-by-case basis. The type and
amount of the fees charged to the client are negotiable and are generally based on the size and
complexity of the plan, the number of plan participants, the location of the participants, the
estimated number of meetings required, and other factors that may be deemed relevant by us
when negotiating with the client. An estimate of the total cost and fees will be determined at the
start of the advisory relationship.

Compensation - Trustee Services
We may charge trustee fees for any accounts where a Firm employee acts as a trustee. The
annual fee would be 0.25% - 0.50% of the assets in the trust, depending upon the scope of the
work.

Calculation and Payment
The specific manner in which we charge fees is established in a client’s written agreement with
us. Clients may elect to be invoiced directly for fees or to authorize us to directly debit fees
from client accounts.

Upon termination of any account, any prepaid, unearned fees will be promptly refunded, and
any earned, unpaid fees will be due and payable.

In no case will more than $1,200 be collected from the client more than 6 months in advance.

Other Fees
There are no additional types of fees or expenses that our clients pay in connection with the
delivery of advisory services.

Agreement Terms
Investment advisory agreements can be terminated by either party within 30 days after written
notice; the unearned portion of a prepaid fee will be refunded on a prorated basis.

If the client made a payment in arrears, we would collect any earned yet unpaid fees.

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
...

Types of Clients
We provide services to individuals, including high net worth individuals; trusts, families, estates,
retirement plans and charitable organizations.

Account Minimums
We have no minimum account size.