Jacobs & Company LLC

ITEM 5 - FEES AND COMPENSATION

ADVISORY FEES
Investment Management Fees
For its investment management services, Jacobs & Company charges an annual fee based on a
percentage of assets under management. The Firm’s standard fee practice is to bill clients every
three months in relation to the month in which investment management services commenced
(and not necessarily on the calendar quarter.) Clients are billed every three months, payable in
advance of services. Each billing is based upon the value of the assets in the client’s account as
of the last business day of the month ending prior to billing. All assets in the Account are included
in the fee assessment unless specifically identified in writing for exclusion. In all cases, the market
value of the client’s account(s) is determined using the following guidelines: (a) for marketable
securities: the current market price provided by the client’s custodian or third party pricing service;
(b) for securities for which there exists no active market (such as real estate or other illiquid securities),
by using such information as the Firm shall in good faith deem relevant to determine the value
thereof, or in the absence of such information, at cost; and (c) cash or equivalents, at dollar value.
The Firm’s standard fee schedule is as follows:

 Value of Account Assets                                          Annual Fee             Per Billing Period
 On the market value up to $2,500,000                             1.00% plus             0.25% plus

 On the market value above $2,500,000 up to $5,000,000            0.75% plus             0.1875% plus

 On the market value above $5,000,000                             0.50%                  0.125%

Our fees are not calculated on the basis of a share of capital gains upon or capital appreciation
of the funds or any portion of the funds of an advisory client (SEC Rule 205(a)(1)). We do not seek,
nor do we accept, sales fees or commissions.

The client’s investment management fee to Jacobs & Company is determined in accordance
with the above standard fee structure, with exceptions negotiated on a case-by-case basis at the
Firm’s discretion. Certain clients whose relationships with the Firm pre-date 2012 could have
different billing arrangements. Services provided for the above fees are for investment advice
and quarterly reporting of asset holdings, valuations and performance reviews. Jacobs &
Company, in its sole discretion, may negotiate to charge a lesser investment management fee
based upon, among other criteria, anticipated future earning capacity, anticipated future

additional assets, dollar amount of assets to be managed, related accounts, account
composition and/or a pre-existing client relationship.

Financial Planning and Consultation Fees
Financial planning and other financial consultation services are provided only to the Firm’s
investment management clients and are provided without separate charge.

GENERAL FEE DISCLOSURE
The Firm does not accept any compensation from third parties in the form of: sales commissions,
12b-1 fees, sales loads, referral fees, performance fees, mutual fund investment management or
administrative fees or revenue sharing payments.

Jacobs & Company believes its fees are competitive with those fees charged by other investment
advisors for comparable services. However, comparable services may be available from other
sources for lower fees than those charged by Jacobs & Company. The client’s fee is determined
in accordance with the above fee structure, with exceptions negotiated on a case-by-case basis
at Jacobs & Company’s discretion. Any deviations from the fee structure are based upon a
number of factors including the amount of work involved, the amount of assets placed under
management and the attention needed to manage the account.

Clients typically authorize the custodian of their account(s) to debit the client’s account for the
amount of Jacobs & Company’s investment management fee and to directly remit that
management fee to Jacobs & Company. The client’s custodian sends a statement to the client,
at least quarterly, indicating all amounts disbursed from the account including the amount of
management fees paid directly to Jacobs & Company. It is the client’s responsibility to verify the
accuracy of the fee calculation, as the custodian will not determine whether the fee is properly
calculated. Clients must discuss any discrepancy in fees with Jacobs & Company within 30-days
of the billing date.

We do not provide clients advice as to the tax deductibility of our advisory fees. Clients are
directed to consult a tax professional to determine the potential tax deductibility of the payment
of advisory fees.

To the extent that a client authorizes the use of margin, and margin is thereafter employed by
Jacobs & Company in the management of the client’s investment portfolio, the market value of
the client’s account and corresponding fee payable by the client to Jacobs & Company may be
increased. As a result, in addition to understanding and assuming the additional principal risks
associated with the use of margin, clients authorizing margin are advised of the potential conflict
of interest whereby the client’s decision to employ margin may correspondingly increase the
management fee payable to Jacobs & Company. Accordingly, the decision as to whether to
employ margin is left to the sole discretion of client.

CUSTODIAN AND BROKERAGE FEES
Clients incur certain charges imposed by their custodians and other third parties such as custodial
fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund
fees, and other fees and taxes on brokerage accounts and securities transactions. Additionally,
clients will incur charges by the executing broker-dealer in the form of brokerage commissions

and transaction fees on the investment transactions entered into for their account(s). All of these
...

ITEM 7 - TYPES OF CLIENTS

Our clients include individuals and high net worth individuals, trusts and estates, pension and profit-
sharing plans, corporations and other business entities. We have established a $2.5 million
minimum value of assets for opening an individual client portfolio, although multiple accounts for
the same client may be aggregated to meet this minimum. This minimum may be waived in
certain circumstances.
As a result of the minimum account requirement, Jacobs & Company’s services may not be
appropriate for everyone. Particularly for smaller accounts, other investment advisors may
provide somewhat similar services for lower compensation, although still others may charge more
for similar services.