Camden Financial Management Inc

Fees and Compensation
   Description
      Camden bases its fees on a percentage of assets under management, the applicable
      minimum annual fee, or a negotiated flat fee with periodic adjustments for inflation.
       Financial Plans are priced according to the degree of complexity associated with the
       Client’s situation.
       Fees are not negotiable.

   Fee Billing
       Investment management fees are billed quarterly, in arrears, meaning that we invoice
       the Client after the three-month billing period has ended. Camden provides a copy of
       the Client’s invoice along with their quarterly investment statements. Camden utilizes
       the quarter end balance to determine the Client’s fee. It is clearly noted on the invoice
       that the Client must verify the fee calculation in that the custodian will not verify these
       figures. The Client authorizes Camden to directly debit this fee from the Client’s
       investment accounts, via the custodian account application. Fees are pulled from

                               Camden Financial Management, Inc.

    multiple Client accounts each quarter. The fee deduction is rotated between the
    Client’s accounts if the Client has multiple accounts.

Other Fees
    Custodians charge transaction fees on purchases or sales of certain mutual funds,
    exchange-traded funds or separate issue securities. These transaction charges are
    usually small and incidental to the underlying annual expense of the fund. The
    selection of the security is more important than the nominal fee the custodian charges
    to buy or sell the security. The current fees at Charles Schwab are $10 to $45 for a
    mutual fund and zero for stocks and ETFs (Exchange Traded Funds).
    Camden also utilizes third party bond brokers that transact bond and CD purchases
    and sales under the direction of the Advisor. These bond brokers are compensated
    by commissions and it is Camden’s responsibility to reduce these commissions
    wherever possible. These commissions for the purchase or sale of municipal bonds
    are significantly higher than the transactions to buy separate issue stocks or mutual
    funds. There is no ongoing mutual fund expense on these separate issue bonds or
    CDs, thus the benefit in paying a higher commission to purchase these securities.
    It is imperative to understand that Camden does not receive any of the above
    commissions nor does Camden receive any enticement to direct trades to these third-
    party brokers.
    Investments may also include: equities (stocks), preferred stock, corporate debt
    securities, certificates of deposit, municipal bonds, investment company securities
    (mutual funds and exchange traded funds) and U. S. government securities.
    Initial Public Offerings (IPOs) are not available through Camden.
    There are instances where extraordinary financial planning or non-investment-oriented
    services could arise under the Investment Advisory Agreement. It should be noted that
    these instances are rare, but have been becoming more frequent with the estate
    settlement work that we have been doing for heirs. Camden will discuss any additional
    fees with client before any fees accrue. The most common reason for these fees has
    been death or divorce of a Client. An hourly fee of $350 will be billed for these services.

Expense Ratios
   Mutual funds and ETFs charge a management fee for their services as investment
   managers. These fees vary on the complexity of the management of the specific
   funds. As an example, a fund that has an expense of .2% would have an annual
   expense of $200 on a $100,000 investment. These fees are in addition to the fees
   paid by the Client to Camden.
    Performance figures quoted by mutual fund companies in various publications are
    after their fees have been deducted. Camden’s performance reports are net of all
    fees (Camden’s Fee, Mutual Fund Expenses and Custodian Transaction Fee).
    Equity Assets are invested primarily in no-load mutual funds and exchange-traded
    funds (ETFs) and Fixed Income Assets are mostly invested within separate issue
    bonds and CDs. Most of the mutual funds are deemed to be “Institutional Class”

                           Camden Financial Management, Inc.

       funds due to their reduced annual expenses provided to Investment Advisors that
       have substantial holdings with the fund company. The underlying expense in a
       recommended fund is very important and a determining factor for the advisor in
       recommending the funds to the Client. Camden favors these lower expense
       investments where applicable for its Clients. These expenses are disclosed in the
       fund prospectus or can be viewed on the mutual fund’s website. Camden can also
       provide details on these fund fees on the initial “Recommendation Letter.”

   Past Due Accounts and Termination of Agreement
       Camden deducts fees from Investment Advisory accounts approximately three weeks
       following the end of the quarter. The Client authorizes the Advisor to deduct these
       fees at the onset of the relationship. The Client has approximately two weeks to
       review their bill before the deduction is implemented. With the above arrangement,
       Past Due Accounts are not applicable. Also, as previously noted, the Client or
       Advisor can terminate any agreement and a prorated portion of the fee will be
       charged to the Client.

Types of Clients
   Description
      Camden generally provides investment advice to individuals, families, pension and
      profit-sharing plans, trusts and estates.
       Client relationships vary in length of service.

   Account Minimums
      Camden believes Clients need to have a minimum portfolio of approximately
      $3,000,000 to justify Camden’s $20,000 minimum annual fee.
       Camden has the discretion to temporarily reduce the account minimum.

                               Camden Financial Management, Inc.

Methods of Analysis, Investment Strategies and Risk of Loss