Checks & Balances Inc

Fees and Compensation

C&B is compensated for advisory services based upon a percentage of the market value at
the end of each quarter. Fees are paid in arrears.

Fees are negotiable, primarily determined by the size and nature of the account. Given fees
are negotiable and vary by account, it is difficult to provide a fee schedule. However, in no
cases do fees exceed 65bp per year for equities and 20bp for other asset classes. A lot of
family accounts do not pay a fee.

C&B does not accept new clients and thus there is no published fee schedule.

Clients determine the way they pay their fees (by check or automatic draft). Fees are paid
quarterly, in arrears. In most cases, fees are deducted from their brokerage account on a
quarterly basis as reports are prepared and distributed. In this case, the client is given a
copy of the bill with detailed calculations to support the amount being deducted.

In addition to money management fees paid to C&B, clients may pay other fees in
connection with the trading of securities. These include but may not be limited to
brokerage commissions (though currently all trading is done through Charles Schwab and
there are no commissions), SEC fees on the sale of securities, wire transfer fees (though
Schwab waives most of them), open end fund transaction fees, or checking related
charges.

Clients do not pay any fees in advance.

Money management services are only provided by Fran Rogers and C&B derives 100% of its
investment advisory fees from a percentage of assets under management. Fran does not
accept compensation for the sale of securities or other investment products. C&B is only a
fee only manager as described above and does not charge commissions or markups.

      Performance-Based Fees and Side-By-Side Management

C&B does not accept any performance-based fees.

Types of Clients

Most of C&B clients are related to either Starr Moore, or primarily Fran Rogers. Accounts
include retirement accounts, individual accounts, foundations, trusts, corporations and
partnerships. There is no minimum account size due to the family nature of the business.
New accounts will only be opened if they relate to Fran Rogers. Otherwise, C&B is not
accepting new clients and does not hold itself out to the public.

Methods of Analysis, Investment Strategies and Risk of Loss

C&B manages money utilizing individual stocks, bonds, mutual funds, or exchange traded
funds. A lot of attention is paid to asset allocation and diversification. Portfolios are
rebalanced based upon individual client needs as well as relative valuation of assets
across various asset classes.

To minimize risk, analysis is performed on portfolios to understand sector weights, country
weights, equity size and style, fixed income quality, etc. Portfolios are managed based upon
individual client objectives.

Clients are reminded that investing in securities involves risk of loss and volatility.

Our investment decisions are made primarily using fundamental and cyclical analysis. The
main sources of information are financial newspapers and magazines, research found on
the Schwab Institutional website, research from Morningstar and company/ETF
information available on the web.

C&B does not utilize a specific investment strategy, or method of analysis, that might lead
to the frequent trading of securities. Securities are generally purchased for the long term
and thus turnover is low. Diversification is a key component of our management process.