Disciplined Equity Management Inc

Item 5 – Fees and Compensation

The standard advisory fee charged by DEM for portfolio management is as follows:

              Asset Value of the Account:           Quarterly Fee
              Up to $3 million                           0.375%
              $3million to $5 million                    0.250%
              Above $5 million                          0.1875%

Clients pay DEM a fee based on the value of assets in their account. Fees are charged
quarterly in arrears based on the value of the account on the last day of the quarter and
adjusted for material cash flows. While DEM intends to charge fees in accordance with the
standard fee schedule in place at the time of executing the portfolio management agreement,
fees are subject to negotiation and may vary from the standard schedules to reflect
circumstances that apply to a specific client account. The fee schedule, and any applicable
terms and conditions, is stated in the client’s portfolio management agreement.

The advisory fee covers only the portfolio management and advisory services provided by
DEM and does not include brokerage commissions, mark-up and mark-downs, exchange
fees, dealer spreads or other costs associated with the purchase and sale of securities,
custodian fees, transfer fees, wire fees, interest, taxes, or other account expenses. All fees
paid to DEM for investment advisory services are separate and distinct from the fees and

expenses charged by mutual funds or in conjunction with internal expenses associated with
exchange-traded funds. The client will be solely responsible, directly or indirectly, for these
additional expenses. If DEM chooses a third-party manager to manage all or a portion of the
client’s portfolio through a Separately Managed Account, the client will pay an advisory fee
to the third-party manager separate from the advisory fee paid to DEM. DEM will disclose
the additional fees to the client prior to causing the client to incur such fees.

DEM does not receive any portion of the additional fees described above. Refer to Item 12
for a detailed discussion of brokerage practices.

Clients may, but are not required to, grant DEM the authority to debit advisory fees directly
from the clients’ accounts. If the client authorizes DEM to debit fees, DEM is deemed to have
custody of the client’s funds. Clients will receive a statement, usually monthly but no less
than quarterly, directly from their account custodian. DEM urges clients to review the
information on the statement for accuracy and compare the information to any reports
received directly from DEM. Please refer to Item 15 of this document for additional
disclosures relating to Custody.

A client can terminate the portfolio management agreement with 30 days written notice.
Any fees due will be payable through the date of termination.

Item 7 – Types of Clients

DEM provides discretionary investment supervisory services to individuals, trusts, estates,
small business owners, pension plans and charitable entities.

The minimum account size for new clients is $1 million. DEM reserves the right to waive this
minimum.