JB Capital LLC

Item 5 – Fees and Compensation

In addition to the information provided in Item 4 – Advisory Business, this section provides additional details
regarding our firm’s services along with descriptions of each service’s fees and compensation
arrangements. It should be noted that lower fees for comparable service may be available from other
sources. The exact fees and other terms will be outlined in the agreement between you and JB Capital.

Asset Management Services

Fees charged for our asset management services are charged based on a percentage of assets under
management, billed in arrears at the end of the billing period on a monthly basis and calculated based on
the fair market value of your account as of the last business day of the current billing period. Fees for
accounts closed during the billing period will be prorated based on the number of days service is provided
during the billing period.

The asset management services continue in effect until terminated by either party (i.e., JB Capital or you)
by providing written notice of termination to the other party. JB Capital will prorate the final fee payment
based on the number of days services are provided during the final period.

Investment Advisory fees will be deducted from your account and paid directly to our firm by the qualified
custodian(s) of your account.

By signing our asset management agreement, you authorize investment advisory fees to be deducted from
your account by the qualified custodian(s), and fees will be paid directly to JB Capital.

JB Capital LLC                                     Page 8            Form ADV Part 2A Disclosure Brochure

You should review your account statements received from the qualified custodian(s) and verify that
appropriate investment advisory fees are being deducted. The qualified custodian(s) will not verify the
accuracy of the investment advisory fees deducted.

For our asset management services, client will be charged the following annual fee based upon assets
under management:

       Assets Under Management                Annual Rate

        First $250,000                           1.6%
        Next $750,000                             1.5%
        Next $1,000,000                           1.2%
        Next $1,000,000                           1.0%
        Next $1,000,000 or greater               0.80%
        Amounts over $5 million                Negotiable

The following terms are ONLY for accounts held directly at American Funds. Investment directly into
American Funds that are held at American Funds are offered where appropriate under special
circumstances. The American Funds fee is different because the investment in their advisory shares is
limited to one fund family. The annual rate for assets in advisory shares of the American Funds is currently
0.5%. This fee shall be deducted from the client’s account by the American Funds Service Company at the
end of each quarterly period ending on the last business day of February, May, August, and November.
The fee shall be the product of (i) the average daily net asset value of Client assets invested in shares of
the Funds through the Program during the quarter; (ii) the number of days in the quarter; and (iii) the annual
rate divided by the number of days in the year.

JB Capital believes that its annual fee is reasonable in relation to: (1) services provided and (2) the fees
charged by other investment advisors offering similar services/programs. Our annual investment advisory
fee may be higher or lower than that charged by other investment advisors offering similar
services/programs. In addition to our compensation, you may also incur charges imposed at the mutual
fund level (e.g., advisory fees and other fund expenses).

Notwithstanding the foregoing, JB Capital may waive or reduce its management fees for employees and
employees’ families. Additionally, and notwithstanding the disclosed fee schedule, the Firm and the client
may choose to negotiate an annual advisory fee that varies from the standard tiered schedule based on
factors that include, but are not limited to, the investment adviser representative providing the services, the
type of client, the complexity of the client’s situation, the composition of the client’s account (i.e., equities
versus mutual funds), the potential for additional account deposits, the relationship of the client with the
investment adviser representative, and the total amount of assets under management for the client.

Mutual funds normally offer multiple share classes, including lower-cost share classes that do not charge
12b-1 fees and therefore are less expensive. Advisors may invest client funds in 12b-1 fee paying share
classes even when lower-cost share classes are available. The 12b-1 fees are not paid to the Firm advisor
or the Firm but rather are paid to the broker-dealer/custodian. As an alternative to purchasing 12b-1 fee
paying share classes, clients who invest in non-12b-1 fee paying share classes will pay a charge per
transaction.

Brokerage commissions and/or transaction ticket fees charged by the qualified custodian are billed directly
to you by the qualified custodian. JB Capital does not receive any portion of such commissions or fees

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from you or the qualified custodian. In addition, you may incur certain charges imposed by third parties
other than JB Capital in connection with investments made through your account including, but not limited
to, mutual fund sales loads, 12(b)-1 fees and surrender charges, variable annuity fees and surrender
charges, IRA and qualified retirement plan fees, and charges imposed by the qualified custodian(s) of your
account. Management fees charged by JB Capital are separate and distinct from the fees and expenses
charged by investment company securities that may be recommended to you. A description of these fees
...

Item 7 – Types of Clients

JB Capital generally provides investment advice to the following types of clients:

    •   Individuals;
    •   High net worth individuals;
    •   Corporations or business entities other than those listed above;
    •   Pension Plans; and
    •   Trusts and Trustees of Trusts.

Clients are required to execute a written agreement with JB Capital specifying the particular advisory
services in order to establish a client arrangement with JB Capital.

Minimum Investment Amounts Required

There are no minimum investment amounts or conditions required for establishing an account managed by
JB Capital. However, all clients are required to execute an agreement for asset management services in
order to establish a client arrangement with JB Capital and/or the third-party money manager.

The minimum fixed fee generally charged for financial planning services is $1,000.

The minimum fixed fee generally charged for consulting services is $1,000.

Third-party money managers may have minimum account and minimum fee requirements in order for
participation in their programs. Each third-party money manager generally will disclose its minimum
account size and fees in its Form ADV Part 2A Disclosure Brochure.

JB Capital LLC                                    Page 13          Form ADV Part 2A Disclosure Brochure