Concorde Financial Resources I Inc

Item 5 – Fees and Compensation

Fees are calculated as a percentage of assets under management. Accounts are charged in advance
for a three-month period based on the account balances. Accounts are debited for the appropriate
fee. If you have more than one account, we may debit only one account for the combined total
balance of all of your accounts. For initial periods, the beginning balance and date range is
described by the management contract. When an account is first placed under management,
billing generally begins on the first business day of the following month, unless the account is open
on the first business day of the month, in which case, billing begins on that day. In addition to our
standard fees, you may incur other charges from other parties for clearing, custody, or
independent investment management.

Mutual fund managers and annuity issuers charge certain fees for their services and products.
Those fees are in addition to the management fees paid to the Adviser and are separate and
distinct from the management fees charged by the Adviser. These fees and expenses are described
in the prospectuses for each mutual fund, annuity, or underlying annuity fund. These fees include
front-end or back-end loads (initial or deferred sales charges), management fees, other fund
expenses and distribution fees (“12b-1 fees”). The type of mutual fund share class used in client
portfolios will determine if there is an initial or deferred sales charge which a client will pay, as
well as the existence and amount of other fund or product expenses to be paid by the client. These
charges, fees and expenses will impact the cost to the client of purchasing, holding and/or selling
the mutual fund or annuity product. Many mutual fund share classes pay 12b-1 fees or trailing
commissions to our affiliated Broker/Dealer, Westminster Financial Securities, Inc., which
increases the cost to the client of holding the mutual fund. This fee is generally .25% annually but
varies from fund to fund. In many instances, a portion of these trailing commissions are then paid
to the investment adviser representative who is also a registered representative of the
Broker/Dealer. Such payments create an incentive for the investment advisor representative to
recommend, purchase and hold a higher-cost share class, which incentivizes, therefore,
constitutes a conflict of interest. In many instances, lower-cost mutual fund share classes are
available. Accordingly, the client should review both the fees charged by the funds and the
applicable program fee charged by the Adviser to fully understand the total amount of fees to be
paid by the client and to thereby evaluate the Advisory services being provided.

The advisory fee is determined based on the fair market value of the client’s account on the last
day of each three-month period multiplied by one-fourth of the corresponding annual percentage
rate. The fee schedule is as follows:

                             Guidelines for Estimating Fee to Clients
                                       Household Assets*

   Quarterly          From                To                     Annual Rate
     Rate
 .275            0.00              $1,000,000.00     1.1% for First $1,000,000
 .2125           $1,000,000.01     $2,000,000.00     .85% on next $1,000,000
 .1875           $2,000,000.01     $3,000,000.00     .75% on next $1,000,000
 .1625           3,000,000.01                        .65% on remaining balance

* Concorde defines a household as any number of people sharing a residence, or members of the
same nuclear family regardless of residence.

A client may terminate an agreement within five business days after signing, without penalty. After
the five-day period expires, a client may terminate a contract by written notice and any fees paid
will be refunded on a prorated basis.

Publications of periodicals and/or newsletters are always provided to clients as a free service.

Assets deposited by a client into their management account between billing cycles will not result
in additional management fees being billed to the client. For accounts closed by a client, Concorde
does make partial refunds of their management fees. Just as with deposits, withdrawals may
require modifications and adjustments to be made in the account to correct the client’s allocation
of assets.

As a broker/dealer Registered Representative Cathy, receives additional compensation for
transactional business held at Westminster Financial Securities, Inc.

Item 7 – Types of Clients

Concorde has registered financial advisors focused on assisting individuals and their families,
trusts, estates, and charitable organizations (hereinafter referred to as the “client”) manage their
wealth and comprehensive financial plans. Our central duty is to provide investment counsel and
guidance, which stresses fiscal responsibility and disciplined asset allocation strategies to meet
client needs, goals, and risk tolerance.