Fishman Jay A Ltd

Item 5 – Investment Management Fees and Compensation

Investment management fees apply to the market value of fixed income securities, convertible
securities, common stocks, exchange traded funds, mutual funds, real estate limited partnerships
and short-term investment reserves.

                     1.00% of the first $1,000,000 of portfolio market value

                     0.75% of the next $1,000,000 - $5,000,000 of portfolio market value

                     0.50% of the excess over $5 million of portfolio market value

Fees are payable quarterly (either in advance or arrears, per the Investment Advisory Agreement
between JAF and the client) as services are rendered in the account equal to one-quarter of the
aforementioned annual fees using the then prevailing quarter-end market values. Fees will
increase or decrease as the market value of a portfolio changes.

Fees are calculated based on the above percentages of assets under management for a client. We
do not receive any fees or commissions from any sources other than providing investment
counseling services.

Special fees, lower or higher than our fee schedule, will be quoted depending upon any special
circumstances, unusual size, substantial concentrations in one or more securities, and the overall
effort and responsibility involved. Such fees are subject to negotiation with each client.

The specific manner in which fees are charged by JAF is established in a written Investment
Advisory Agreement with each client. As noted, JAF generally invoices on a quarterly basis.
Clients may pay investment management fees directly or from their custodian account. Accounts
initiated after the beginning of a quarter or terminated before the end of a quarter will be charged
a prorated fee. Upon termination of any account, any prepaid, unearned fees will be promptly
refunded, and any earned, unpaid fees will be due and payable.

Jay A. Fishman, Ltd. fees are exclusive of brokerage commissions, custodian fees and other related
costs and expenses which shall be incurred by the client. See “Item 12 – Brokerage Practices”
below. Mutual funds and exchange traded funds also charge internal management fees which are
disclosed in a fund’s prospectus. Such charges, fees and commissions are exclusive of and in
addition to JAF’s fees. We do not receive any portion of these commissions or fees from any such
funds.

JAF, in its sole discretion, may waive its $1 million aggregate account minimum (see Item 7 below)
and/or charge a lesser investment advisory fee based upon certain criteria (i.e. anticipated future
earning capacity, anticipated future additional assets, dollar amount of assets to be managed,
family or related accounts, account composition, competition, negotiations with client, etc.). Please
Note: As 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: JAF’s Chief Compliance Officer, Diane Bedenko, remains available to address any
questions that a client or prospective client may have regarding advisory fees.

Margin Accounts: Risks/Conflict of Interest. JAF does not recommend the use of margin for
investment purposes. A margin account is a brokerage account that allows investors to borrow
money to buy securities. By using borrowed funds, the customer is employing leverage that will
magnify both account gains and losses. The broker charges the investor interest for the right to
borrow money and uses the securities as collateral. Should a client determine to use margin, JAF
will include the entire market value of the margined assets when computing its advisory
fee. Accordingly, JAF’s fee shall be based upon a higher margined account value, resulting in JAF

earning a correspondingly higher advisory fee. As a result, the potential of conflict of interest arises
since JAF may have an economic disincentive to recommend that the client terminate the use of
margin. ANY QUESTIONS: Our Chief Compliance Officer, Diane Bedenko, remains available
to address any questions that a client or prospective client may have regarding the use of margin.

Item 7 - Types of Clients

Jay A. Fishman, Ltd. provides portfolio management services to high net worth individuals,
families, corporations and charitable institutions on a discretionary basis. We normally require an
aggregate minimum account size of $1,000,000.