Creegan & Nassoura Financial Group LLC

Item 5 Fees and Compensation

For the investment supervisory services described above, fees are customarily charged based on a
percentage of assets under management as follows:

Standard annual fees are:

1.50% on $ 0 - $ 500,000
1.25% on $ 500,001 - $ 1,000,000
1.00% on $1,000,001 - $ 5,000,000
.80% over $5,000,000

The management fee is billed quarterly in advance based on the beginning aggregate market value of all
assets under management within the client’s account, including allocations to cash and investments in
mutual funds. Compensation is payable within 30 days after the quarter commences. Additional assets
received into a Client account during any fee period may be charged a pro-rated fee based on the number
of days remaining in the fee period. Fees are refundable on a pro-rata basis upon cancellation of the
advisory relationship with the applicant. Cancellation is at the option of either party on 30 days written
notice without penalty.

Compensation terms for the advisory services described above such as financial planning services or
advice to clients on matters not involving securities are charged on an hourly basis at rates ranging from
$350.00 - $400.00 per hour. Compensation for services not involving securities may be negotiated on a

Creegan & Nassoura                              Page 4
Financial Group, LLC

fixed fee basis from time to time. Fees for services not involving securities are billed monthly or upon
completion of the assignment, according to the terms of each engagement.

Compensation terms for investment advisory services or advice to clients on matters not involving
securities, may be negotiated under certain circumstances such as to meet competition; where assets of
several accounts within a related group are combined to determine the applicable fee or when a different
level of service is required.

All fees paid to the Company for investment advisory services are separate and distinct from the 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 and other fund expenses. The Company
does not receive any portion of the fees charged by mutual funds.

Clients are responsible for all custodial and securities execution fees charged by the custodian and
executing broker-dealer. CNFG’s fee is separate and distinct from the custodian and execution fees.

Item 7 Types of Clients

The Company offers its services to individuals, pension and profit-sharing plans, trusts, estates, charitable
organizations, corporations or businesses.

The Company’s cumulative minimum account requirement for opening and maintaining an account is
$500,000. However, for accounts less than $500,000, exceptions may be made in certain circumstances.