Cerda Munoz Advisors Inc

ITEM 5- FEES AND COMPENSATION

INVESTMENT MANAGEMENT & FINANCIAL PLANNING FEES:
Investment management fee schedule may vary depending on client circumstances but a typical fee
schedule would be as follows:

ASSETS UNDER MANAGEMENT                                           PERCENTAGE
All Assets                                                          0.60% - 1.50%
CMA will charge fees in arrears at the end of each calendar quarter based upon the value of the
client’s account(s) at the end of the quarter. All fees are prorated based on the number of calendar
days remaining in the quarter. CMA will debit the fees directly from client’s accounts with their
consent. CMA’s investment management fee schedule may vary depending on client circumstances.
Unaffiliated investment managers, will debit fees directly from the client’s investment account and
forward the fees to CMA. CMA does not accept compensation for the sale of securities or other
investment products.

Financial Planning fees can range from $3,600 to $15,000 depending on the complexity of the plan.
CMA will not charge the fees for more than six months in advance. If client’s circumstances
change during the course of our engagement, there may be an additional fee billed at our hourly rate
of $300. If there is substantial change in the course of the plan/project, CMA may require an
amended agreement. Fees may be subject to change. A client agreement may be canceled at any
time by either party for any reason upon receipt of written notice. Upon termination of any account,
any prepaid, unearned fees will be promptly refunded and any earned, unpaid fees will be due and
payable.

FOR CALIFORNIA RESIDENTS:
Subsection (j) of Rule 260.238 of the California Code of Regulations requires that all investment
advisors disclose to their advisory clients that lower fees for comparable services may be available
from other sources.

MUTUAL FUND FEES:
 All fees paid to CMA for Investment Advisory Services are separate and distinct from the fees and
expenses charged by mutual funds to their shareholders. These fees and expenses are described in
each fund’s prospectus. These fees will generally include a management fee, other fund expenses,
and a possible distribution fee.

Unaffiliated Investment managers charge management fees to participant in their programs. These
management fees are disclosed in the statement of investment information and disclosure brochure.

ITEM 7- TYPES OF CLIENTS
We work with individuals, pension and profit sharing plans, trusts and other business entities. There
is an account minimum of $250,000.