James I Black & Company

Item 5: Fees and Compensation

Fees Charged JIBC

        JIBC charges fees based on percentage of assets under management, hourly charges, fixed fees or
other fees for its advisory services. At the sole discretion of JIBC, these fees are negotiable.

Wealth Management Services Fees

        Wealth management clients are first charged a financial planning service fee in accordance with the
broad based financial plan fee schedule and payment arrangements listed in the Financial Planning Services
Fees section below. Our portfolio management services fees and payment arrangement are disclosed below.

Portfolio Management Services Fees

        If you engage JIBC for portfolio/asset management services, we will provide this service on a fee
basis. Our fee may be negotiable, depending on individual clients circumstances. Our fee will vary depending
on the particular investment adviser representative managing your account and may be higher or lower than
what other clients pay for similar services. We will charge an annual fee based upon a percentage of the
market value of the assets being managed. Our fee for portfolio/asset management services is set forth in the
following blended fee schedule:

 Assets Under Management                                  Annual Fee
 First $1,000,000                                         1.00% per year
 Next $1,000,000                                           .75% per year
 Next $3,000,000                                           .50% per year
 Over $5,000,000                                           .40% per year

        For example, a client with a managed account worth $3,000,000, will incur the following annual
asset management fee:

                         First $1,000,000 x 1.0%                   $10,000
                         Next $1,000,000 x 0.75%                       $7,500
                         Next $1,000,000 x 0.50%:                      $5,000
                         Total annual fee:                         $22,500

        JIBC will either bill you directly for payment of our fees or the fees will be deducted from your
account. Fees are billed quarterly, in arrears and are based on the value of your portfolio at the end of the
preceding quarter. Payment in full is expected upon invoice presentation. Fees are usually deducted from a
designated client asset account to facilitate billing. The qualified custodian will provide you with an account
statement at least quarterly. This statement will detail all account activity, including the advisory fees
deducted from your account(s).

         Our annual fee is exclusive of, and in addition to brokerage commissions, transaction fees, and other
related costs and expenses, which will be incurred by the client. However, we will not receive any portion
of the commissions, fees, and costs. Please see Item 12 – Brokerage Practices for further information on
brokerage and transaction costs.

         For the initial period of investment management services, the first period’s fees will be calculated
on a pro-rata basis. The Advisory Agreement between JIBC and the client will continue in effect until either
party terminates the Agreement in accordance with the terms of the Agreement. JIBC’s annual fee will be
pro-rated through the date of termination and any remaining balance shall be charged or refunded to the
client, as appropriate, in a timely manner.

Financial Planning Services Fees

        JIBC may provide its clients with financial planning and consulting services. JIBC will charge a
fixed fee and/or hourly fee for consulting services. Our consulting fees are negotiable. We utilize the
following financial planning fee schedules:

C       Fixed Fees: For broad based financial plans, JIBC will charge a fixed fee that ranges from $2,500.00
        to $5,000.00, for broad based planning services. In limited circumstances, the total cost could
        potentially exceed $5,000.00. In such cases, we will notify the client and may request that the client
        pay an additional fee.

C       Hourly Fees: JIBC charges an hourly fee range from $300 to $500 per hour with a minimum
        engagement of 5 hours for clients who request specific services (such as a modular plan or hourly
        consulting services) and do not desire a broad based written financial plan.

         Prior to engaging JIBC to provide consulting services, the client will generally be required to enter
into a written agreement with us. The agreement will set forth the terms and conditions of the engagement
and describe the scope of the services to be provided and the portion of the fee that is due from the client.
Generally, JIBC requires one-half of the consulting fee (estimated hourly or fixed) payable upon entering
the written agreement. The balance is generally due upon the completion of the agreed upon services. Either
party may terminate the agreement upon 30 days by written notice to the other. In the event the client
terminates JIBC’s consulting services, the balance of JIBC’s unearned fees (if any) shall be refunded to the
client.

Additional Fees and Expenses

         The fees JIBC charges may be negotiable based on the amount of assets under management,
complexity of client goals and objectives, and level of services rendered. As described above, the fees are
charged as described and are not based on a share of capital gains of the funds of an advisory client. All fees
paid to JIBC for investment advisory services are separate and distinct from the fees and expenses charged
by mutual funds or exchange traded funds to their shareholders. These fees and expenses are described in
each fund’s prospectus. These fees generally include a management fee, other fund expenses, and a possible
distribution fee. If the fund also imposes sales charges, a client may pay an initial or deferred sales charge.
A client could invest in a mutual fund directly, without the services of JIBC. In that case, the client would
...

Item 7: Types of Clients

        We offer investment advisory services to individuals, pension and profit sharing plan participants,
guardianships, trusts and estates.

         JIBC requires a minimum of $50,000 to open and maintain an advisory account. At our sole
discretion, we may waive this requirement. This requirement can be met by combining two or more accounts
owned by you or related family members.