Executive Financial Services Inc

ITEM 5: FEES AND COMPENSATION
5.A Compensation
CND Financial is only compensated for advisory services in the following manner: A percentage of assets
under management or hourly fees. CND Financial does not accept commissions or any other fees in
connection with its investment advisory services.

5.A(1) Investment Management fees are agreed upon at the time of engagement and are based on a
number of factors. The annual Investment Management fee schedule is as follows:

      1.00% of the first $1,000,000
      0.80% of the next $500,000
      0.60% on assets over $1,500,000

The management fee is billed quarterly and in advance of services. The quarterly fee is calculated by
multiplying the portfolio value by ¼ of the annual fee. The portfolio value is determined by the client’s
custodian and the billable figure is based upon the value as of the last market day of the preceding quarter.
A pro-rata fee is calculated for services initiated at any time other than at the beginning of a calendar quarter.
In the rare case where there is an absence of an asset value (via the custodian); the Adviser will utilize at
least one independent third party to assess the holding’s value.

CND Financial’s annual investment management fee may be modified based upon the nature of the
engagement, scope and/or complexity of services and/or portfolio, anticipated efforts incurred by
investment personnel, pre-existing relationships, or other special situations or factors at the Adviser’s
discretion. CND Financial’s fee may be higher or lower than may otherwise be available through other
types of advisory firms for similar services.

CND Financial does not calculate fees based on a percentage of capital gains or appreciation in client
accounts (no “performance fees”). CNDF’s fees are for investment advisory services only and do not
include any other professional services that may be required by you to implement recommendations made
by CNDF.

Either party may immediately terminate Investment Management services by written notice to the other
at any time and without penalty. If termination occurs prior to the end of a billable quarter, the client will
receive a pro-rated refund of unearned fees (the balance of the pre-paid quarter). The client does not have
to request this refund, as CND Financial will calculate the refund promptly upon receipt of the termination
notice.

5.A(2) Hourly Fees for Financial Planning / Consultation Services are agreed upon at the time of
engagement and apply to those clients who are not Investment Management clients of CND Financial.

Compensation is based on an hourly rate for the time spent by respective personnel and fees are invoiced
directly:

      CPA/Personal Financial Specialist™ or Certified Financial Planner™: $250
      Chartered Financial Analyst™: $250
      Financial Planner: $200
      Clerical: $60

Should the client’s condition change during the course of services such that new advice, recommendations
or research are required, additional fees may apply. The Adviser will not engage in additional services that
result in fees without a new or modified client agreement and the client’s approval.

Either party may immediately terminate Financial Planning / Consultation Services by written notice to
the other at any time and without penalty. In addition, CND Financial offers an unconditional refund of
Financial Planning or Consulting fees if requested within ten (10) days of the presentation of the plan or
advice. This may be the case if the client subsequently contracts CND Financial for investment management
services or if the client should determine the plan is unacceptable.

5.B PAYMENT OF ADVISORY FEES
5.B(1) Payment of Investment Management fees may be made directly to the Adviser or through a debit
to the client’s account via the qualified custodian holding the client’s funds and securities. The Adviser
adheres to the following criteria when payment is made via a qualified custodian as required by the SEC’s
Investment Advisers Act and the rules thereunder: 1) The client provides written authorization permitting
the fees to be paid directly from the client’s account held by the independent qualified custodian and the
authorization is limited to withdrawing contractually agreed upon investment adviser fees; (2) The client
will directly receive regular (monthly or quarterly) account statements from the qualified custodian which
reflect the Adviser’s fee deduction; (3) The frequency of fee withdrawal shall be specified in the written
authorization and/or agreement; (4) The custodian of the account shall be advised in writing of the limitation
on the Adviser’s access to the account and; (5) The client shall be able to terminate the written billing
authorization or agreement at any time.

If the designated account(s) do not contain sufficient funds to pay advisory fees, the client can leave
standing orders to deduct fees via other accounts. In the absence of alternate instructions, the Adviser will
issue an invoice for advisory fees to the client and payment is expected upon receipt.

It is important to note that custodial firms (e.g. Schwab) do not verify advisory fees. Therefore, clients
should review their custodial statements carefully. If a client should have any questions or concerns in
connection with an advisory fee deduction, they should promptly contact CND Financial. If at any time
during the engagement, the client fails to receive the regular account statements produced by the custodian,
it is important for the client to promptly notify CND Financial and the custodial firm.

If the Adviser’s Form ADV 2A Brochure is not delivered at least 48 hours prior to engagement, the client
may terminate Investment Management Services within 5 days without penalty and the Adviser will
promptly refund any pre-paid fees. Alternatively, either party may immediately terminate services upon
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ITEM 7: TYPES OF CLIENTS
Types of clients include individuals, pension plans, profit sharing plans, trusts, estates, charitable
organizations, corporations, and other business entities. Our minimum portfolio size is $250,000, which
may be negotiable depending on the circumstances of the client, (i.e., potential to save), or as a courtesy to
an existing client. CND Financial reserves the right, in its sole discretion, to decline any new account.