JFS Wealth Advisors LLC

Item 5 – Fees and Compensation

FEE SCHEDULES
Wealth Management Services, Investment Advisory Services, and Business Retirement Plan
Services are fee-based, and clients are engaged under a specific contract for services. These
contracts can be terminated by the client without penalty by giving written notice of termination
within five business days. After the five-day period, clients can terminate the agreement at any
time with a thirty-day written notice. Advisory fees due will be prorated to the date when written
notice of termination is given, and the effective date of termination will be thirty days later.

The annual fee for Wealth Management (WM) Services will be charged as a percentage of
assets under management generally not to exceed 1.50%. The most typical fee is the following
CUMULATIVE schedule:

          1.0% of first $1,000,000 of assets, plus
          0.9% of next $1,000,000, plus
          0.8% of next $1,000,000, plus
          0.7% of next $1,000,000, plus
          0.6% on assets greater than $4,000,000
          Minimum $1,500 per quarter

For clients desiring Wealth Management (WM) Services with less than $600,000 of investable
assets at the beginning of the relationship, JFS has developed a hybrid schedule that blends a

fixed fee with an asset under management fee. The fixed fee varies in accordance with the
complexity of the client’s situation and ranges from $2,400 - $5,400 with accompanying AUM
charges as follows in the table below. The fixed fee plus asset management fee is billed
quarterly, in advance. Once the assets under management equal or exceed $600,000, the fee
schedule is switched to the Wealth Management (WM) schedule above:

          Fixed Fee, plus AUM fee
          $2,400 plus .6% of assets
          $3,000 plus .5% of assets
          $3,600 plus .4% of assets
          $4,200 plus .3% of assets
          $4,800 plus .2% of assets
          $5,400 plus .1% of assets

The annual fee for Family Wealth Services (FWS) will be charged as a percentage of assets
under management. The most typical fee is the following CUMULATIVE schedule:

          0.80% of first $5,000,000 of assets, plus
          0.50% of next $5,000,000 of assets, plus
          0.45% of next $10,000,000 of assets, plus
          0.40% of assets greater than $20,000,000
          Minimum $8,500 per quarter

The annual fee for Investment Advisory Services (IAS) will be charged as a percentage of
assets under management. The most typical fee is the following schedule:

          1.25% of assets
          Minimum $750 per quarter

Certain fee schedules for firms added via merger or acquisition are grandfathered.

Additionally, for certain clients, the following has been grandfathered.

Cash Management can be provided as an additional service as needed. Upon client request,
advisor provides cash management services, including maintaining cash reserves or systematic
withdrawals more frequently than semi-annually. In order to make a clear distinction between
invested assets and short-term reserves, and in order not to distort the investment performance
of the investment portfolio, these services will be provided through the means of a separate
money market or other cash-type account registered in the client’s name. For these services,
these accounts will be billed a flat rate of 0.25% per annum on the total market value of the
account based on data provided by the account custodian and usually deducted directly from
the account. Fees will be deducted quarterly based on the asset value at the end of the previous
quarter. This fee is assessed separate from any fees assessed on the investment portfolio.
These are standard fees, and in certain instances, fees may be reduced based on the situation.

The annual fee for Business Retirement Plan Services will be charged as a percentage of assets
under management generally not to exceed 1.25%. The most typical fee is the following applicable
CUMULATIVE schedule:

          0.6% of first $3,000,000 of assets, plus
          0.5% of next $2,000,000, plus
          0.3% of next $5,000,000, plus
          0.2% on assets greater than $10,000,000

          Minimum $3,000 per year / $750 per quarter, not to exceed $1,000 per participant

Held-Away Assets
For certain clients, we charge an advisory fee for services provided to the held-away accounts
mentioned above in Item 4, just as we do with client accounts held at our primary custodians.
The specific fee schedule charged by us is provided in the client’s investment advisory
agreement with us.

Billing
The specific way in which fees are charged by JFS is detailed in the client’s specific contract
with JFS.

Typically, JFS’ advisory fees are billed quarterly in advance based on the gross market value of
the assets (including cash, accrued interest, accrued dividends, margin balances and the values
of securities purchased with borrowed funds) on the last business day of the previous quarter
unless otherwise specified in the client’s advisory contract. JFS’ advisory fee is prorated, if
applicable.

Clients elect either to be billed for services or to have fees directly debited from their account(s).
The default is for fees to be directly debited.

For existing accounts, JFS does not charge on, nor does it provide a credit for, intra-quarter
account additions or withdrawals.

Fixed Price/Hourly Agreements
The following services are provided on a fixed price and/or hourly basis and are billed at the
completion of the service or client engagement or as detailed in the client’s agreement. The
fixed price amount and/or hourly rates are based upon the requested services, the
professional(s) providing the services, and the complexity of the engagement.

   •   Financial Planning Services, including Tax Planning Services
   •   Tax Return Preparation Services*
   •   Advisory Services
   •   Consulting Services
   •   Other Services, including Estate Administration Services, as requested and mutually
...

Item 7 – Types of Clients

JFS provides services to individuals, high net worth individuals, trusts, estates, pension and
profit sharing plans, charitable organizations and foundations, businesses, and municipal
government entities.