Canty Financial Management Inc

Item 5 – Fees and Compensation
Compensation
CFM bases its fees on a percentage of assets under management, hourly charges, project
fees, and fixed fees. CFM’s fee schedules are described below.

Compensation – Investment Advisory Services
For the majority of its clients, CFM levies a fee that is negotiable, as a percentage of
assets under management with a minimum fee of $500. This investment advisory fee
shall be pro-rated and paid quarterly, in advance, based upon the value of the assets on
the first day of the quarter.

Schedule of Management Fees:

       Assets Under Management             Annual Fee
       Less than $1,000,000                1.00 %

       Over $1,000,000                     0.80%

An Investment Advisory Agreement will be provided to each client prior to, or
simultaneously, with the execution of any formal documents required by the custodian,
Charles Schwab, Inc. Furthermore, the client along with the Advisor will sign and date the
Investment Advisory Agreement with a copy provided to the client and the original is
maintained in digital format. Clients may elect to be invoiced directly for fees, or to
authorize CFM to directly debit fees from client Charles Schwab brokerage accounts.

After information is obtained and at the discretion of the client and the consent of the
advisor, CFM may also provide investment advice on an hourly basis at $300 per hour.
CFM may also charge project fees which are determined by the breath, depth and nature of
the specific project. These projects are confined to investment advice, income tax
preparation, tax planning, insurance review, and estate planning.

Compensation – Financial Planning Services
For clients with less than $100,000 of assets under management, CFM charges a minimum
fee of $1,000 for financial planning services.

Calculation and Payment
CFM will generally calculate fees in advance on a quarterly basis. Accounts initiated or
terminated during a calendar quarter will be charged a prorated fee. Upon termination of
any account, any prepaid, unearned fees will be promptly refunded, and any earned, unpaid
fees will be due and payable.

Agreement Terms
Either party may terminate the agreement upon written notice. In the event of
cancellation, CFM shall complete the outstanding commitments made by him on behalf of
the client. However, CFM shall not make any further commitments or be otherwise
responsible for any acts on behalf of the client. Any unused fee will be refunded to the
client.

General Information on Compensation and Other Fees
In certain circumstances, fees, account minimums and payment terms are negotiable
depending on client’s unique situation – such as the size of the aggregate related party
portfolio size, family holdings, low cost basis securities, or certain passively advised
investments and pre-existing relationships with clients. Certain clients may pay more or
less than others depending on the amount of assets, type of portfolio, or the time
involved, the degree of responsibility assumed, complexity of the engagement, special
skills needed to solve problems, the application of experience and knowledge of the
client’s situation. Lower fees for comparable services may be available from other
sources.

The fee charged is calculated as described above and is not charged on the basis of a
share of capital gains upon or capital appreciation of the funds of an advisory client.

CFM’s fees are exclusive of brokerage commissions, transaction fees, and other related
costs and expenses which shall be incurred by the client. Clients may incur certain
charges imposed by custodians, brokers, third party investment and other third parties
such as fees charged by managers, custodial fees, deferred sales charges, odd-lot
differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and
taxes on brokerage accounts and securities transactions. Mutual funds and exchange
traded funds also charge internal management fees, which are disclosed in a fund’s
prospectus.

Such charges, fees and commissions are exclusive of and in addition to CFM’s fee, and
CFM shall not receive any portion of these commissions, fees, and costs. Neither CFM nor
any of its supervised persons (employees) accept compensation for the sale of securities or
other investment products.

All fees paid to CFM for investment advisory services are separate and distinct from the
fees and expenses charged by mutual funds & ETFs. These fees and expenses are described
in each fund’s prospectus. These fees will generally include a management fee, other
expenses, and a possible distribution fee. If the fund also imposes sales charges, a client
may pay an initial or deferred sales charge.

A client could invest in a mutual fund directly, without the services of CFM. In that case, the
client would not receive the services provided by CFM which are designed, among other
things, to assist the client in determining which mutual funds are most appropriate to each
client’s financial condition and objectives. Accordingly, the client should review both the
fees charged by the funds and the fees charged by CFM to fully understand the total amount
of fees to be paid by the client and to thereby evaluate the advisory services being
provided. Clients should note that similar advisory services may (or may not) be available
from other registered investment advisers for similar or lower fees.

Types of Clients
As described in Item 4, CFM ‘s clients include individuals, pension and profit sharing

plans, trusts, estates, charitable organizations and various for-profit business entities.

Account Minimums
CFM does not require a minimum account size for investment advisory clients.