JFA Advisors LLC

Item 5 – Fees and Compensation

A.     Fee Schedule
ASSET MANAGEMENT
JFA offers asset management services to advisory Clients. JFA charges an annual investment
advisory fee based on the total assets under management as follows:

              Assets Under Management                         Maximum Annual Fee

                       All Assets                                      2.00%

Fees are billed quarterly or monthly in advance based on the amount of assets managed as of the
close of business on the last business day of the previous billing period.

ERISA PLAN SERVICES

The annual fees are based on the market value of the Included Assets and shall not exceed 3.00%.
Fees may be charged monthly or quarterly in advance based on the assets as calculated by the
custodian or record keeper of the Included Assets (without adjustments for anticipated
withdrawals by Plan participants or other anticipated or scheduled transfers or distribution of
assets) on the last business day of the previous billing period. The fee schedule, which includes
compensation of JFA for the services provided is described in detail in the ERISA Plan Agreement.
The Plan is obligated to pay the fees, however the Plan Sponsor may elect to pay the fees. Clients
may elect to be billed directly or have fees deducted from Plan Assets. JFA does not reasonably
expect to receive any additional compensation, directly or indirectly, for its services. If additional
compensation is received, JFA will disclose this compensation, the services rendered, and the
payer of compensation.
FINANCIAL PLANNING AND CONSULTING
JFA charges a fixed fee for financial planning and consulting. Prior to the planning process the
Client will be provided an estimated plan fee which will be based on the complexity of the
engagement. JFA reserves the right to waive the fee should the Client implement the plan through
JFA.

       ONGOING OR ONE-TIME FIXED FEES
       Fixed Fee Services are offered based on a fixed one-time or fixed annual fee to generally
       not exceed $150,000. Any fee over $150,000 will be discussed and negotiated with the
       Client. All fees are based in part on the complexity, timeframe, and expected deliverables of
       the engagement. Fees for one-time plans or consultations are billed in advance before
       commencement of the engagement. Fees for ongoing engagements are billed in advance
       on a monthly or quarterly basis. Ongoing fee services will continue year over year until
       canceled, in writing, by either JFA or the Client.

B.     Payment of Fees
Asset Management Fees are generally deducted directly from the Client’s Account.

ERISA Fees are generally deducted directly from the Client’s/Plan Assets.

Financial Planning and Consulting Fees are generally invoiced directly to the Client but may also be
deducted from another account held with JFA.

JFA, in its sole discretion, may charge a lesser investment advisory fee based upon certain criteria
(e.g., historical relationship, type of assets, anticipated future earning capacity, anticipated future
additional assets, dollar amounts of assets to be managed, related accounts, account composition,
negotiations with Clients, etc.).

For all services, Clients may terminate their engagement with JFA within five (5) business days of
signing an Agreement with no obligation and without penalty. After the initial five (5) business days,
the Agreement may be terminated by JFA with thirty (30) days written notice to Client and by the
Client at any time with written notice to JFA. For engagements opened or closed mid-billing period,
fees will be prorated based on the days services are provided during the given period. All unpaid
earned fees will be due to JFA and all unearned fees will be refunded to the Client. Any increase in
fees will be acknowledged in writing by both parties before any increase in said fees occurs.

C.     Additional Fees
Custodians may charge brokerage commissions, transaction fees, and other related costs on the
purchases or sales of mutual funds, equities, bonds, options, margin interest, and exchange-traded
funds. Mutual funds, money market funds, and exchange-traded funds may also charge internal
management fees, which are disclosed in the fund’s prospectus. JFA does not directly receive any
compensation from these fees. All of these fees are in addition to the management fee you pay to
JFA. For more details on the brokerage practices, see Item 12 of this brochure.

D.       Prepayment of Fees
All services, as outlined above, required advanced payment.

E.       External Compensation for the Sale of Securities
Investment Advisor Representatives of JFA may also be registered as Registered Representatives
of a broker-dealer, which allows them to perform brokerage services for Clients by executing
security transactions. This practice represents a conflict of interest because the Investment
Advisor Representatives is able to choose between offering Client’s fee-based programs and
services (as is typical of an advisory relationship) and/or commission-based products and services
(as is typical of a brokerage relationship). While a Client generally pays a fee to their Investment
Advisor Representatives on an advisory account based on the value of account assets and not the
number of transactions, in their capacities as Registered Representatives, an Investment Advisor
Representative can offer securities and receive a commission, markup, or markdown on each
transaction. An example of this may be a transaction commission on a mutual fund purchase, with
additional compensation paid from an ongoing 12b-1 trailing commission compensation directly
from the mutual fund company during the period that the Client maintains the mutual fund
investment. Our Investment Advisor Representatives do not receive these 12b-1 fees in relation to
managed investment advisory accounts in their role as Registered Representatives. This conflict
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Item 7 – Types of Clients & Account Minimums

JFA’s Clients are generally individuals, small businesses, trusts, estates, and high net-worth. Client
relationships vary in scope and length of service. JFA requires a minimum account size of $500,000
to enter into an Advisory Agreement. However, JFA retains the discretion to lower or waive said
minimum.