Desmond Wealth Management Inc

ITEM 5: FEES AND COMPENSATION
Integrated Wealth Management Services
DWM charges a single fee for its services. Those engaging the firm for investment consulting services
only, for any reason, pay the same fee. Typically the fees are a fixed percentage of the assets under
management. Our standard fee schedule is:

        Assets Under Management                                        Annual Fee
        On the first $1,000,000 and less                                1.25%
        On amounts greater than $1,000,000 up to $3,000,000             1.00%
        On amounts greater than $3,000,000 up to $5,000,000             0.75%
        On amounts greater than $5,000,000 up to $10,000,000            0.50%
        On amounts greater than $10,000,000                           negotiable

Our minimum annual fee is $22,500, subject to a minimum quarterly fee of $5,625.

The fee for each calendar quarter shall be obtained by multiplying the market value of the assets of the
Account(s) as of the last day of the preceding calendar quarter by one-fourth of the applicable annual fee
rate listed above.

If a client maintains a margin balance in an account, advisory fees will be assessed on the gross account
value before subtracting the margin balance. For new client accounts, the first payment is a pro-rata
calculation which takes into consideration the number of days remaining in the quarter and the initial
value of the portfolio.

The first quarterly fee for new accounts is typically billed with the next quarter’s fee calculation. We
generally make pro-rated adjustments to the fee for each deposit or withdrawal in an amount equal to or
greater than $100,000 per day. The client’s next quarterly fee calculation will reflect any such
adjustments for the prior quarter.

This fee is electronically paid from the client’s investment account(s) at the beginning of each quarter
unless otherwise arranged.

If there is insufficient cash in the client’s account to pay the fees, an equal balance of securities in the
client’s portfolio may be sold to create the necessary cash.

Although DWM generally charges for investment management services according to the fee schedule
provided above, DWM may negotiate alternative fee arrangements (including a flat annual fee, lower
percentages and/or lower minimum) with the client based on, but limited to the following factors: the
complexity of the engagement, the value of assets under management, anticipated future additional assets,
related accounts, family members, investment objectives, account composition, and the individual(s)
performing the services.

Current client relationships may exist where the fees are higher or lower than the fee schedule above.

Financial Planning Services
Ad hoc financial consulting services are provided for those who need a limited scope of work. These
services will be provided on an hourly rate ranging between $200 to $500 per hour and due upon
submission of an invoice.

For fee arrangements, generally a retainer of 50% is due at the time the Financial Planning Agreement is
signed. You may cancel our Financial Planning Agreement at any time by providing written notice.
Upon cancellation, we will offset the amount due (calculated at the firm rates of $200 to $500 per hour
depending upon the person(s) working on the engagement) by the retainer received and provide a refund
or invoice you for the balance due.

The client is not obligated to employ us to implement our financial consulting advice, or any portion of it,
at all. If the client elects to use the services of DWM to implement the financial consulting advice a
conflict of interest exists because DWM is compensated for the financial consulting services and for
providing wealth management services.

Financial Planning Fees for Investment Management Clients
Financial planning should be an ongoing, life-long process. After the initial year’s plan is completed and
recommendations are presented to the client and to the extent desired, implemented by the client, future

financial planning services provided to the client by DWM are referred to as “ongoing planning” and is an
important service provided by DWM.

For those clients making use of the investment management services of DWM and who pay at least our
minimum annual investment management fee (currently $22,500), the cost of ongoing financial planning
services will be incorporated into the investment management fees. For such clients, except for the initial
planning fees, there will be no additional charge over and above the investment fees for planning work
and advice that reviews and/or updates planning previously performed for that client. An exception to this
rule may arise if a client wishes DWM to provide advice and analysis well beyond DWM’s normal
service offering. For example, additional assistance with real estate issues or complex business exit
strategies, or with other assets beyond the normal scope of services typically provided, DWM and client
will determine an appropriate additional retainer to compensate DWM for the anticipated level of service.

Planning services directed at previously unaddressed topics, extraordinary research or analysis may
involve additional costs, which will be negotiated on an individual basis prior to beginning such work.

For clients who pay investment management fees less than our annual minimum (currently $22,500), a
separate fee for financial planning may be charged. Such separate financial planning fees may take any of
the forms described under “Financial Planning Fees” within this document but are generally hourly,
project or retainer and will be based on the type and amount of work requested by the client.

General Disclosures
Clients who receive Consultative Wealth Management Services or Investment Consulting only Services
are required to provide authorization for DWM to deduct our fees directly from your investment account.
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ITEM 7: TYPES OF CLIENTS
DWM generally provides asset management services to the following types of clients:

       Individuals
       High Net Worth Individuals
       Individual Participants of Retirement Plans
       Trusts
       Pension and Profit Sharing Plans
       Business Entities.

We generally require a minimum relationship size of $2,000,000 in order to effectively implement our
investment process.