Ean Equity Financial Services LLC

Fees and Compensation

EAN EQUITY FINANCIAL SERVICES LLC bases its fees on a percentage of assets
under management, hourly charges, and fixed fees.
Financial plans are priced according to the degree of complexity associated with the
client’s situation. The Firm currently charges a $4,000 flat fee for financial plans. A
portion of this fee is payable upon commencement of services with the rest billed
according to the agreed upon schedule outlined in the Financial Planning Agreement,
typically quarterly, unless other arrangements are made, until services are paid in full.
Invoices are sent to clients for financial planning services with remuneration to the
Adviser made by check.
The fee for a financial plan is predicated upon the facts known at the start of the
engagement. Since financial planning is a discovery process, situations may occur
wherein the client is unaware of certain financial exposures or predicaments. The
financial plan is delivered within approximately 90 days of initial payment. In all cases, if
the engagement is cancelled by either the client or the Planner, any pre-paid fees are
refunded on a pro-rated basis.

                           EAN EQUITY FINANCIAL SERVICES LLC

In the event that the client’s situation is substantially different than disclosed at the initial
meeting, a revised fee will be provided for mutual agreement. The client must approve
the change of scope in advance of the additional work being performed when a fee
increase is necessary.
The Planner will continue to be available to advise the Client regarding implementation
of the Client’s financial plan for twelve months from the date of the agreement. If the
agreement is renewed, in each Renewal Year the Planner provides to the Client a
written update of the original financial plan and be available to the Client for financial
counseling during each such Renewal Year.
Consulting Services are available to clients who do not wish to engage the Adviser for a
full financial plan or investment advisory services. There is no set fee for this type of
engagement but rather negotiated between EAN EQUITY FINANCIAL SERVICES LLC
and the client. A retainer, which represents half of the minimum fee, is due and payable
at the acceptance of the agreement with the remainder payable upon completion. The
hourly rate for limited scope consulting engagements is up to $200, or at a negotiated
rate or fixed fee amount.
Investment advisory management fees are billed quarterly, in advance, meaning that
you are invoiced before the three-month billing period has begun. Payment in full is
expected upon invoice presentation. Fees are usually deducted from each separate
client account to facilitate billing. The client must consent in advance to direct debiting
of their investment account.
EAN EQUITY FINANCIAL SERVICES LLC currently charges 0.75% per year for
investment advisory services. The fee will be based on the value of managed assets as
of the closing balance of the previous quarter and is paid quarterly at the start of each
quarter. Client can authorize the automatic withdrawal of funds to pay Advisor’s fee from
Client’s account(s). Client’s authorization for automatic withdrawals must be in writing.
The annual Investment Advisory Services Agreement fee is negotiable, depending upon
the size and complexity of a client’s account(s). The fee is paid quarterly, at the start of
each quarter. The fee is calculated based upon the closing price of securities in the
client’s account that are listed on a national securities exchange or on NASDAQ on the
last trading day of the previous calendar quarter. Other securities or investments are
valued in a manner determined in good faith by the Advisor and such valuation
methodology(ies) is disclosed to the client. The amount of the fee is increased by the
pro-rated fee applied to capital inflows (cash deposits and/or transfers in of securities)
and decreased by the pro-rated fee applied to capital outflows (withdrawals of cash
and/or securities) in the clients account(s) during the prior quarter. Current client
relationships exist where the fees are higher or lower than the fees charged other
clients. At termination, any pre-paid fees are refunded on a pro-rated basis.
Additionally, as a part of its investment advisory services, the Firm LLC recommends
independent money managers to clients, if appropriate, through the Schwab Managed
Account Select (“Select”) or Managed Account Access (“Access”) programs, sponsored
by Charles Schwab & Co., Inc. (“Schwab”) and other sub-advisors who do not participate
in the program. The Adviser maintains the client relationship and as a fiduciary, is
responsible for the ongoing monitoring of the activities of the independent managers.

                            EAN EQUITY FINANCIAL SERVICES LLC

Recommendations for the use of an independent money manager are made on a case-
by-case basis according to a client’s needs. Clients who choose to use an independent
money manager will pay a fee to that independent money manager, which is variable
depending on the independent money manager and is in addition to fees paid to EAN
EQUITY FINANCIAL SERVICES LLC.
Tax preparation is billed at a rate of $200 per hour, or at a negotiated rate or fixed fee
amount. There is no minimum fee for tax preparation. Eligible federal and applicable
state returns are filed electronically without an additional fee.
All fees are negotiable.
EAN EQUITY FINANCIAL SERVICES LLC, in its sole discretion, can waive its minimum
fee and/or charge a lesser investment advisory fee based upon certain criteria (e.g.,
historical relationship, type of assets, anticipated future earning capacity, anticipated
future additional assets, dollar amounts of assets to be managed, related accounts,
account composition, negotiations with clients, etc.).
New Investment Advisory Services Agreement fees are calculated on a formula basis
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Types of Clients

EAN EQUITY FINANCIAL SERVICES LLC generally provides investment advice to
individuals and high net worth individuals.
Client relationships vary in scope and length of service.
EAN EQUITY FINANCIAL SERVICES LLC has no account minimum.

Methods of Analysis, Investment Strategies and Risk of Loss

The primary security analysis method is fundamental analysis, but charting, technical
analysis, and cyclical analysis are employed, if appropriate.
The main sources of information include financial newspapers and magazines,
inspections of corporate activities, research materials prepared by others, corporate
rating services, timing services, annual reports, prospectuses, filings with the Securities
and Exchange Commission, and company press releases.
Other sources of information that EAN EQUITY FINANCIAL SERVICES LLC uses
include Morningstar Principia mutual fund information, Morningstar Principia stock
information, Charles Schwab & Company's "SchwabLink" service, other Charles
Schwab products and services, ValueLine, Stock Investor Pro, InvestmentView,
research materials prepared by others, corporate rating services, annual reports,
prospectuses, filings with the Securities and Exchange Commission, company press
releases, other financial newspapers and magazines, and the World Wide Web.

                           EAN EQUITY FINANCIAL SERVICES LLC

The primary investment strategy used on client accounts is strategic and tactical asset
allocation modified to each client’s specific situation. This means that Advisor uses
actively managed funds, passively-managed index funds or exchange-traded funds as
the core investments, and then add other actively- or passively managed funds or
exchange-traded funds where there are opportunities to make a difference and/or
opportunities to add diversification. Portfolios are recommended to be globally
diversified to control the risk associated with traditional markets. Diversification among
fixed income mutual funds and exchange-traded funds that differ as to maturities (Short
term, Medium term and Long term), debt quality (highly rated bonds, medium rated
bonds and risky (junk) bonds), and market sector specialty (US government bonds,
municipal bonds, corporate bonds, international bonds) is recommended depending
upon the taxable exposure of the client’s accounts and the client’s other holdings, risk
tolerance and other issues specific to the client. Diversification among individual stocks,
equity mutual funds and exchange-traded funds that differ as to investment style (Value
or Growth), company capitalization (Large cap, Mid cap or Small cap) and sector
specialties (Real Estate, Energy/Natural Resources) is also recommended depending
upon the client’s other holdings, risk tolerance and other issues specific to the client.
The investment strategy for a specific client is based upon the objectives stated by the
client during consultations. The client may change these objectives at any time.
Other strategies include long-term purchases, short-term purchases, trading, short
sales, margin transactions, and option writing (including covered options, uncovered
options or spreading strategies).
All investment programs have certain risks that are borne by the investor. Investing in
securities involves risk of loss that clients should be prepared to bear. The Firm’s
investment approach constantly keeps the risk of loss in mind. Investors face the
following investment risks:
       •           Interest-rate Risk: Fluctuations in interest rates may cause investment
       prices to fluctuate. For example, when interest rates rise, yields on existing
       bonds become less attractive, causing their market values to decline.
       •          Market Risk: The price of a security, bond, or mutual fund may drop in
       reaction to tangible and intangible events and conditions. This type of risk is
       caused by external factors independent of a security’s particular underlying
       circumstances. For example, political, economic and social conditions may
       trigger market events.
       •          Inflation Risk: When any type of inflation is present, a dollar today will
       not buy as much as a dollar next year, because purchasing power is eroding at
       the rate of inflation.
       •          Currency Risk: Overseas investments are subject to fluctuations in the
       value of the dollar against the currency of the investment’s originating country.
       This is also referred to as exchange rate risk.
       •          Reinvestment Risk: This is the risk that future proceeds from
       investments may have to be reinvested at a potentially lower rate of return (i.e.
       interest rate). This primarily relates to fixed income securities.

                           EAN EQUITY FINANCIAL SERVICES LLC

       •          Business Risk: These risks are associated with a particular industry or
       a particular company within an industry. For example, oil-drilling companies
       depend on finding oil and then refining it, a lengthy process, before they can
       generate a profit. They carry a higher risk of profitability than an electric
       company, which generates its income from a steady stream of customers who
       buy electricity no matter what the economic environment is like.
       •         Liquidity Risk: Liquidity is the ability to readily convert an investment
       into cash. Generally, assets are more liquid if many traders are interested in a
       standardized product. For example, Treasury Bills are highly liquid, while real
       estate properties are not.
       •           Financial Risk: Excessive borrowing to finance a business’ operations
       increases the risk of profitability, because the company must meet the terms of
       its obligations in good times and bad. During periods of financial stress, the
       inability to meet loan obligations may result in bankruptcy and/or a declining
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