Haykin Michael

Fees and Compensation
The client will be given an investment advisory brochure (ADV Part 2) upon the execution of investment
advisory agreement, and the client can terminate the agreement without paying any fee within 5 days of
execution. At any point, the client can terminate this contract by notifying us in writing.

Our fee schedule is based on the total average assets under management in your accounts during the
year. The average is calculated using the ending balance of each calendar quarter. Our investment
management fee is calculated as shown below:

          Total average assets                            Fee as a percentage of assets

        $ 0          -   $ 100,000                                      1.0 %
        $ 100,000.01 -   $ 200,000                                      0.9 %
        $ 200,000.01 -   $ 300,000                                      0.8 %
        $ 300,000.01 -   and up                                        0.65 %

This fee is charged yearly and reflects the period from October 1st to September 30th. All of your
accounts will be combined when calculating your total average assets under management. Payments
are due by December 15th. Fees are payable by a personal check or a money order. We cannot deduct
the fee directly from your account. The fee is not negotiable.

We will not charge any other commissions or fees. However, we will at times buy mutual funds,
exchange traded funds and other securities that may charge their own management fee. We are always
mindful of such fees and try to minimize such expenses for our clients. You will also need to pay some
fees to the broker and custodian of your account.

If you terminate the contract, you will be liable to pay our investment advisory fee up to the date of
termination. The fee will be calculated on a pro-rated basis, based on the average assets in your
accounts. The account values for each quarter-end and the final value at the date of termination will be
used to calculate the average assets. If there are no completed quarters, the final account values at the
date of termination will be used only. The fee schedule will be applied to the average assets in your
accounts pro-rated to the number of days from the last billing date (September 30) to the termination
date. The fee is due by personal check or money order 20 days from the date of the final invoice.

       Brokerage and Custody Fees & Expenses
       We recommend that you establish a brokerage account with the Schwab Institutional division of
       Charles Schwab & Co., Inc (Schwab), a FINRA-registered broker-dealer, member SIPC. Schwab
       will maintain custody of and perform trades in your accounts. We are in no way affiliated with
       Schwab other than as a broker and custodian for our business.

       Schwab will provide you with access to its institutional trading and custody services, which are
       normally not available to Schwab retail investors. These services are available to independent
       investment advisers with at least $10 million of client money held in Schwab accounts. Schwab
       brokerage services include the execution of securities transactions, custody, access to mutual
       funds and other investments that are otherwise generally available only to institutional
       investors or would require a significantly higher minimum initial investments. We also believe
       Schwab charges a reasonable commission for securities trading.

       Many Schwab products also assist in our management duties. These include software and other
       technology that (i) provide access to client account data (such as trade confirmations and
       account statements); (ii) assist trade execution and dealing with trade orders for multiple client
       accounts; (iii) provide research, pricing and other market data; (iv) assist with back-office
       functions, record keeping and client reporting.

       Schwab Institutional also offers guidance on compliance, legal and other topics.

       We also recommend Schwab based on the following reasons:

           -   Schwab provides monthly and year end statements
           -   It’s software allows for the creations of gain and loss reports
           -   There is no annual fee on any of your accounts
           -   You will have access to many families of mutual funds that in many cases have no load
               and no brokerage commission to trade
           -   Through Schwab’s systems you can authorize us to proxy vote on your behalf and
               receive interim mailings
           -   Clients of investment advisors have access to the Schwab Alliance team
           -   Schwab has retail offices across the Unites States

       In rare occasions, we manage self-directed brokerage accounts within 401Ks for our clients at
       brokers other than Schwab.

       For the last several years, (2010-2018) our average annual brokerage commission expense
       ranged between 0.03-0.06% of assets. For accounts that are one million or greater, the annual
       commission expense was 0.02-0.04%. We believe that statistics demonstrate that we have a
       very low turnover. Commission will vary based on the timing of deposits and withdrawals. From
       10-07-2019 at Charles Schwab and co. Inc., all electronic trades for stocks, ETF and US Treasuries
       are at zero trading commission.

Performance Fees and Side-by-Side Management
We do not charge a performance fee and every client pays according to the same management fee
schedule.

Types of Clients
We generally provide advice to individuals and trusts.

We do not have an account minimum size or minimum annual investment advisory fee.

Methods of Analysis, Investment Strategies and Risk of Loss
Investing in securities involves risk of loss that you should be prepared to bear. We try to mitigate this
risk by choosing securities that we believe offer good long-term prospects for growth and represent a
real and lasting value. It would be accurate to describe our investment philosophy as ‘contrarian value’
investing. The methods of analysis include both fundamental and technical indicators. We consider
price/earnings ratios, price/book, profitability, yields (on stock and bonds), leverage and interest
coverage ratios, 200-day moving averages and other factors in our decision making.

By choosing securities that we believe are undervalued, we are taking positions that go against existing
trends. In the short run, this may mean that our performance will deviate from the broader market. In
the long run, we anticipate that our methodology will perform well, while minimizing speculative risks.

Contrarian value is an investment philosophy that prefers securities that are undervalued. These
investments are characterized by low price-to-earnings ratios, low price-to-book ratios, often low price-
to-sales ratios, and other such metrics. Usually this type of investing strategy requires a long-term
approach.

We sometimes use covered calls in our clients’ accounts. This approach is more conservative compared
to investing in common stocks; covered calls offer downside protection alongside a limited upside, they
provide income and a hedge against losses.

When we invest in fixed income securities, we typically invest in individual corporate and government
bonds rather than mutual funds or ETFs. Bonds are not risk free, fixed income investors might not get
paid their interest and principal in full.

We also invest in ADRs (American Depositary Receipts) which represent foreign security traded in US
markets. ADRs allow us to add foreign exposure in a simple and straightforward way. ADRs represent
the same risk as owning another stock in general, and the exact risk of owning the underlying foreign
company in particular. ADRs also have the additional risk of foreign currency fluctuations.

We do not trade excessively, please refer to section: Fees and Compensation for a discussion of our
trading costs.