Northern Financial Advisors Inc

Item 5          Fees and Compensation

NFA is a “fee-only” firm, which means that it is solely compensated by fees received directly from
clients, and not commission compensation. NFA does not sell insurance or investment products,
nor does it pay or receive referral fees. Fees are negotiable solely in the discretion of NFA. Below
are the fees and payment methods of those fees for each type of engagement.

Standard Retainer

 NFA’s Standard Retainer fee is an annual fixed fee ranging between $6,200 and $75,000 based
on the complexity of Client’s financial needs and the scope of the services to be provided to
Client using Client’s net worth, gross income, and if tax services are being included. The
Standard Retainer fee is comprised of an Initial Set Up Fee, which is a fixed fee charged for those
initial services, and a Retainer Fee, which is an annual fixed fee charged for NFA’s ongoing
services. During the Initial Set Up Period, a portion of the fees is payable upon execution of the
agreement, with the remainder due and payable upon the date specified in the agreement
(typically upon the date of income tax return filing). Thereafter, in Renewal Years, which will
consist of successive one-year periods, clients may elect to make payment of the fee in equal
partial payments over the course of a calendar year or elect to pay in full when Client’s tax return
is completed, no later than April 15th. Clients receive a notice of their actual fee upon renewal
with a corresponding request for acknowledgement.

In addition to the Standard Retainer Fee, NFA may also charge $300 for each amended tax return
prepared, if applicable. NFA may also charge up to $300 per return for additional tax returns
prepared for the clients’ dependents. Credits and miscellaneous adjustments may also be
applied if the client has an adequate estate plan (will or trust) in place, or for other reasons, as
appropriate. Any credits or adjustments will be determined at the sole discretion of NFA but will
nonetheless be fully explained at the time of executing the Standard Retainer Agreement.

Spark Retainer

NFA’s Spark Retainer fee is based on the complexity of Client’s financial situation and the scope
of the services to be provided to Client using Client’s gross income and assets as follows: For
Clients with less than $75,000 in investible assets, the fee is $750 plus 1.5% of Client’s gross
income from all sources except capital gains and losses reportable for the previous year. If a
Client is comprised of more than one person, the fee is based upon the gross income of both
persons.

For Client’s with more than $75,000, but less than $500,000, in investible assets, the fee is 1% of
the Client’s investible assets plus 1.5% of Client’s gross income from all sources except capital
gains and losses reportable for the previous year. If a Client is comprised of more than once
person, the fee is based upon the gross income of both persons.

The Initial Term can last between 12 and 23 months, and clients may choose to pay those fees
in full, up front, or they may elect to make a payment upon signing the agreement and then
in equal, partial payments over the course of a calendar year. Thereafter, Renewal Terms will
occur in successive, one-year periods calculated in the manner described above and payable
pursuant to the election made by the client in the initial term – either in full or in equal, partial
payments throughout the year.

If a client wishes to upgrade to the Standard Retainer service offering, they may receive credit
toward Standard Retainer fees for all unearned amounts paid under Spark Retainer Agreement.

Asset Management Retainer

NFA’s Asset Management Retainer fee is one percent (1%) of assets under NFA’s management.
NFA recalculates this fee annually on the engagement’s anniversary date. Clients may choose to
pay the fee in full, up front, or they may elect to make a payment upon signing the agreement
and then make equal, partial quarterly payments over the course of a calendar year.

Payment of Fees, and fees at termination

NFA charges all fees in advance, and, in their advisory contracts, clients authorize NFA to deduct
their fee directly from the clients’ accounts. Clients may terminate any engagement within five
(5) days of signing their agreement for a full refund of fees and expenses. After that time, either
NFA or the client can voluntarily terminate the agreement upon written notice to the other party
at any time for any reason. At termination, any prepaid but unearned fees will be promptly
refunded to the client by NFA in its sole discretion. Any fee earned but unpaid becomes owing
and due at the time of termination.

Sub-Advisory Fee

When the account, or a portion of the account is managed by Sub-Advisor, Sub-Advisor will
separately deduct its fee from the client’s account. Sub-Advisor’s fee for its management is charged
an annual rate of 0.25% of the Assets Under Management, billed quarterly, in advance, calculated
upon the value of the Assets on the last day of the preceding quarter. The fee for Sub-Advisor is in
addition to the fee charged by NFA. The fees are also described in the Sub-Advisor’s disclosure
documents provided at the time of engagement of the Sub-Advisor. NFA’s arrangement with Asset
Dedication is that when the amount of assets that NFA places with Asset Dedication reaches a certain
level Asset Dedication’s fee is reduced. This fee arrangement gives NFA an incentive to recommend
our clients place their accounts with Asset Dedication. NFA will only use Asset Dedication’s services
when in the best interest of the client. You can see additional information regarding our arrangement
with Asset Dedication in Item 10 of this brochure. Clients should review NFA and the Sub-Advisor’s
fees for the total advisory fee being paid.

Other Fees and Expenses

In addition to NFA’s fee, clients may incur certain other fees and charges to implement NFA’s
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Item 7          Types of Clients

NFA’s clients generally include individuals and high net worth individuals. NFA does not have any
account minimums.