J K R & Company Inc

ITEM 5: FEES AND COMPENSATION

Investment Management Fee: The Adviser’s Annual Fee shall be payable quarterly, in four (4) equal installments
in arrears on the first business day after the ending quarter. This will be based upon the total gross value of the assets
in the Client’s Account(s) as of the last business day of the prior calendar quarter. The total balance of the clients
account will be multiplied by the annual rate and divided by 4. This Annual Fee will also be adjusted in the event of
net contributions, or withdrawals during any calendar quarter more than $25,000, with an adjustment or refund to be
made as of the beginning of the next calendar quarter or upon termination of this Agreement, as appropriate. Fees
payable for a portion of any calendar quarter shall be prorated accordingly.

Each IAR sets his own fee schedule; however, in no instance will the annual investment management fee
exceed 1.5% (0.375% quarterly) of a client’s assets under management. The exact services you will receive
and the fees you will be charged are dependent upon the complexity of your financial situation, the
investment services to be provided, the experience and standard fees charged by your IAR, and the nature
and total dollar value of assets maintained in your account.

Options Trading Fees: Any managed account held at the Broker Dealer trading options will be charged a
$25 ticket charge as well as $1.00 per option contract for closing transactions and $2.50 per option
contract for opening transactions. Managed accounts trading options will not be charged an AUM fee for
options held in the account.

Financial Planning Fee: We charge a fixed fee for written financial plans, which range from $2500 to
$10,000 depending on the nature and complexity of a client’s financial situation. The hourly fee is up to
$250 and is generally paid after the consultations. If the Agreement is terminated within five (5) business
days from the date of inception, all fees paid in advance will be refunded. If the agreement is terminated at
any other time, any prepaid fees will be refunded on a pro-rated basis. If the client engages JKR for additional
investment management services, JKR may offset all or a portion of the financial planning or consulting fee.

All fees are negotiable at the sole discretion of JKR and are agreed upon prior to entering into a written
agreement with any client.

Advisory clients should note that fees for comparable services vary and lower fees for comparable services
may be available from other sources.

Retirement Plan Services Fee: A client will pay a fee based on the market value of the retirement plan
assets in accordance with a schedule of fees agreed to by both parties. The fee range for JKR’s services is

                                             JKR & Company Brochure
negotiable and may vary according to the facts and circumstances including the scope of services to be
provided, the duration of services and the size of the client (number of employees, plan or individual assets,
and other demographic factors). Based upon the services selected by the client, JKR generally will charge an
annual advisory fee ranging from .50% to 1.00% of the plan assets under management.

                                             B ILLING P RACTICES

Investment Management Fee: Clients may choose to either have account debited directly from Custodian
(preferable) or to have JKR send a bill directly to the client to pay by check made payable to JKR within thirty
(30) days of receipt. If the client chooses to be billed directly by the Custodian, JKR would have custody over
that account and must have written authorization from the client to do so. All fees are billed in arrears.

Financial Planning or Consulting Fee: One-time financial planning fees are typically collected as follows:
50% of the agreed upon fee is payable in advance of services, with the remaining 50% due upon delivery of
the plan. In certain situations, your IAR may allow you to pay 100% of the agreed upon fee upon delivery of
the plan. You also may elect to pay up to 100% of the fee prior to delivery of the plan.

Retirement Plan Services Fee: Retirement plan services fees are assessed quarterly in arrears and
calculated by the Custodian based on the fair market value of the account as of the last business day of the
current billing period. Such fees will be automatically deducted from the client’s account by the Custodian
upon the client’s written authorization.

                                                 OTHER FEES

There are several other fees that can be associated with holding and investing in securities. In addition to
the advisory fees paid to JKR, clients may also incur certain charges imposed by other third parties, such as
broker-dealers, custodians, trust companies, banks, and other financial institutions (collectively “Financial
Institutions”). These additional charges may include securities brokerage commissions, transaction fees,
custodial fees, fees charged by the third-party investment manager, margin costs, charges imposed directly
by a mutual fund or ETF held in a client’s account (as disclosed in the fund’s prospectus (e.g., fund
management fees and other fund expenses), deferred sales charges, wire transfer and electronic fund fees,
and other fees and taxes on brokerage accounts and securities transactions. Clients are responsible for
paying those fees separately from JKR fees. JKR does not receive any portion of these additional fees or
expenses incurred by advisory clients.

MUTUAL FUNDS: As with any business, running a mutual fund involves costs. For example, there are costs
incurred in connection with particular investor transactions, such as investor purchases, exchanges, and
redemptions. There are also regular fund operating costs that are not necessarily associated with any
particular investor transaction, such as investment advisory fees, marketing and distribution expenses,
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ITEM 7: TYPES OF CLIENTS

JKR generally provides investment management and financial planning or consulting services to individuals
and high net worth individuals. JKR also offers retirement plan services to plan sponsors.

JKR generally has a $50,000 minimum account requirement, but JKR reserves the right to waive
requirements or not accept certain accounts based on the size of the account and the nature of the services
being provided.