Heffernan Advisory Inc

Item 5 - FEES AND COMPENSATION
Investment By Design™

Advisory Fees are charged per the following fee schedule:

        Portfolio Value                  Client’s Annual Fee
        0 - $1,000,000                            1.50%
        Next $1,000,001 - $2,000,000              1.00%
        Next $2,000,001+                          0.75%

Fees are negotiable and are not based on a share of capital gains upon or capital appreciation of the funds
or any portion of the funds. Advisory fees will be charged in advance of each calendar quarter. The
quarterly advisory fee will be calculated based on the value of your account on the last business day of
the just completed calendar quarter. No fee adjustments are made during a quarter for inflows and
outflows occurring in the account during a calendar quarter. Additionally, no fee adjustments will be made
for account appreciation or depreciation.

Heffernan Advisory aggregates your managed accounts together by household to determine your
quarterly fee (limited to a household). Heffernan Advisory’s quarterly fee is determined using the
following formula:

Quarter end account value x advisory fee / 365 (days) x number of days in the quarter = Quarterly fee.
For example, if you have four managed accounts with a value as of the just completed calendar quarter
of: $101,569.40, $355,498.46, $675,879.50, and $74,301.12 with a total value of $1,207,248.48, your fee
will be calculated as follows.

        First $1,000,000 x 1.5% =       $15,000.00
        Balance of $207,248.48 x 1% = $ 2,072.48
        Annual fee                      $17,072.48
        Quarterly fee based on assets custodied at Schwab
        $17,072.48 / 365 = $46.77 per day x 92 days = $4,302.84

Heffernan Advisory may change the above fee schedule upon 30 days prior written notice to you.

Fee Dispersion. Heffernan Advisory, in its discretion, may charge a lesser investment advisory fee, charge
a flat fee, waive its fee entirely, or charge fee on a different interval, based upon certain criteria (i.e.
anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to be
managed, related accounts, Heffernan Advisory professional providing the services, account composition,
complexity of the engagement, anticipated services to be rendered, grandfathered fee schedules,
employees and family members, courtesy accounts, competition, negotiations with client, etc.) Please

ADV Part 2A                                       Page 13                              Heffernan Advisory, Inc.

Note: As a result of the above, similarly situated clients could pay different fees. In addition, similar
advisory services may be available from other investment advisers for similar or lower fees. ANY
QUESTIONS: Heffernan Advisory’s Chief Compliance Officer, James Hoyt, remains available to address any
questions that a client or prospective client may have regarding advisory fees.
Third-Party Investment Management Program Fee. If Heffernan Advisory engages AIM to manage all or
a portion of your assets, AIM receives an annual Program Fee based upon a percentage of the client assets
under management in the Program. This fee is more particularly set forth in the AIM Disclosure Brochure
that is provided separately. The AIM Disclosure Brochure shall also set forth the manner in which AIM’s
fees are charged for Program participation.
If the Nucleus Program is adopted for use with client accounts, additional fees will be incurred, including
a Strategist Fee, Administration Fee, and Trading fee. Such fees, as described in the AIM Disclosure
Brochure, are in addition to the investment management fee described above. AIM will also earn
additional fees if Tax Overlay Services are provided. These fees are also described in the AIM Disclosure
Brochure.
In addition to the advisory fees above, you will pay transaction fees for certain securities transactions
executed in your account (primarily mutual funds) in accordance with the custodian’s transaction fee
schedule. In addition to Heffernan Advisory’s investment advisory fee described above and transaction
fees discussed above, clients will also incur, relative to all mutual fund and exchange traded fund
purchases, charges imposed at the fund level (e.g., management fees and other fund expenses).

Advisory fees will generally be collected directly from your account, provided you have given Heffernan
Advisory written authorization. You will be provided with an account statement reflecting the deduction
of the advisory fee direct from the account custodian. If the account does not contain sufficient funds to
pay advisory fees, Heffernan Advisory has limited authority to sell or redeem securities in sufficient
amounts to pay advisory fees. You may reimburse the account for advisory fees paid to Heffernan Advisory
except for ERISA and IRA accounts.

Heffernan Advisory continues to treat cash as an asset class. As such, unless determined to the contrary
by Heffernan Advisory, all cash positions (money markets, etc.) shall continue to be included as part of
assets under management for purposes of calculating Heffernan Advisory’s advisory fee. At any specific
point in time, depending upon perceived or anticipated market conditions/events (there being no
guarantee that such anticipated market conditions/events will occur), Heffernan Advisory may maintain
cash and cash equivalent positions (such as money market funds, etc.) for defensive, liquidity, or other
purposes. In addition, while assets are maintained in cash, such amounts could miss market advances.
Depending upon current yields, at any point in time, Heffernan Advisory’s advisory fee could exceed the
interest paid by the client’s money market fund. All such cash positions are included as part of assets
under management for purposes of calculating Heffernan Advisory’s advisory fee.

Heffernan Advisory may utilize mutual funds that pay 12b-1 fees. 12b-1 fees are fees paid out of fund
...

Item 7 - TYPES OF CLIENTS
Heffernan Advisory primarily serves individuals and families, but has also been engaged by entities,
including retirement plans. Heffernan Advisory does not maintain any minimum fee or minimum asset
requirements. As indicated at Item 5 above, Heffernan Advisory, in its discretion, may charge a lesser
investment advisory fee, charge a flat fee, waive its fee entirely, or charge fee on a different interval,
based upon certain criteria (i.e. anticipated future earning capacity, anticipated future additional assets,
dollar amount of assets to be managed, related accounts, Heffernan Advisory professional providing the
services, account composition, complexity of the engagement, anticipated services to be rendered,
grandfathered fee schedules, employees and family members, courtesy accounts, competition,
negotiations with client, etc.). Please Note: As a result of the above, similarly situated clients could pay
different fees. In addition, similar advisory services may be available from other investment advisers for
similar or lower fees. ANY QUESTIONS: Heffernan Advisory’s Chief Compliance Officer, James Hoyt,
remains available to address any questions that a client or prospective client may have regarding advisory
fees.