Canby Financial Advisors LLC

Item 5 - Fees and Compensation

Canby Financial charges investment management fees based on a percentage of assets under
management. Financial planning and consulting fees are charged as fixed-price project fees
or hourly fees, depending on the particular types of services to be provided. The specific fees
charged by Canby Financial for services provided will be set forth in each client’s agreement.

Canby Financial Advisors                                                     Disclosure Brochure

    A. Financial Planning and Investment Management Services

Fees for Investment Management Services
Canby Financial charges an investment management services fee that is agreed upon with
each client and set forth in an agreement executed by the Firm and the client. The investment
management services fee shall be paid monthly, in advance, based on the asset value of the
client’s accounts as of the last business day of the prior month. Investment Management fees
for the initial month shall be paid in arrears, on a pro rata basis, based on the value of the
client’s accounts as of the last business day of that initial month. The asset value of a client’s
account is determined as provided by third-party sources, such as pricing services, custodians,
fund administrators, and client-provided sources. For purposes of fee calculation, the asset
value of client accounts includes cash and cash equivalents, as well as margined securities.
Canby Financial does not reduce investment management services fees for margin borrowing,
regardless of whether the assets are in cash or other securities. Canby Financial has a financial
incentive to recommend that clients borrow money for the purchase of additional securities for
the client’s account managed by the Firm or otherwise not liquidate some or all the assets the
Firm manages. Canby Financial addresses this conflict of interest by this disclosure and
working to ensure that any recommendation to a client regarding the use of margin is suitable
for the client.

Following is Canby Financial’s asset-based fee schedule for investment management services:

                                     FEE SCHEDULE
                      Market Value of Assets                   Rate
                Up to $1,000,000                              1.00%
                $1,000,000 to $2,000,000                      0.90%
                $2,000,00 to $3,000,000                       0.80%
                $3,000,00 to $4,000,000                       0.70%
                $4,000,00 to $5,000,000                       0.60%
                $5,000,00 to $7,500,000                       0.50%
                $7,500,000 to $10,000,000                     0.45%
                $10,000,000 to $12,500,000                    0.40%
                $12,500,000 to $15,000,000                    0.35%
                $15,000,000 to $20,000,000                    0.30%
                $20,000,000 and above                         0.25%
                The percentage for the highest range of Managed Asset
                value achieved applies to all Managed Assets, not just
                Managed Assets within that range.

Canby Financial’s policy is to include all related client accounts, specifically the accounts of
direct family members sharing the same residence address, for purposes of determining a
client’s market value of assets.

Canby Financial Advisors                                                      Disclosure Brochure

Fees for Financial Planning and Consulting Services
Clients that receive financial planning services are charged a fixed fee ranging up to $10,000
or an hourly fee rate up to $500, depending upon the complexity of a client’s plan and services
provided. If Canby Financial is providing financial planning services which are completed upon
delivery of the financial plan, the fixed fee or hourly fee will be charged in full upon delivery of
the completed financial plan. If Canby Financial is providing ongoing financial planning
services the fixed or hourly fee will be billed monthly in arrears. Actual fees charged are clearly
outlined in the financial planning agreement and clients receive invoices reflecting the amount
of the fee due and payable. As referenced above in Item 4, Canby Financial investment
management services clients are not charged for any provided financial planning services
unless the Firm and the client agree to additional services.

Fees for Investment Management Services to Retirement Plans
Retirement plan advisory clients will be charged an annual fixed fee or an asset-based fee. The
client may pay a fixed annual fee ranging from $2,500 to $50,000, depending on the
complexity of the services provided. Fixed fees start upon entering into the agreement with
Canby Financial and invoices will be sent quarterly in arrears at the end of each calendar
quarter. For retirement plan advisory clients subject to an asset-based fee, the percentage fee
amounts range from 0.05% to 0.50% (per annum). Asset-based fees will be calculated by the
recordkeeper for the client’s retirement plan and paid to Canby Financial quarterly in arrears.

Notwithstanding the foregoing, Canby Financial and the client may choose to negotiate an
annual advisory fee that varies from the schedule and ranges set forth above. Factors upon
which a different annual advisory fee may be based include, but are not limited to, the size
and nature of the relationship, the services rendered, the nature and complexity of the
products and investments involved, time commitments, and travel requirements. The
investment management services fee charged by the Firm will apply to all of the client’s
assets under management, unless specifically excluded in the client agreement. Although
Canby Financial believes that its fees are competitive, clients should understand that lower
fees for comparable services may be available from other sources and firms.
...

Item 7 - Types of Clients

Canby Financial offers investment advisory services to individuals, high net worth individuals,
corporations, trusts, estates, private foundations, qualified retirement plans, and charitable
organizations. Canby Financial does not impose a minimum portfolio size or a minimum initial
investment to open an account. However, Canby Financial does reserve the right to accept or
decline a potential client for any reason in its sole discretion.