JLB & Associates Inc

Item 5 – Fees and Compensation

Management fees are billed quarterly in arrears, based on the market value at each quarter
end at one-fourth the annual rates shown below. There is no arrangement for collecting
fees in advance.

               Annual Rate                             Portfolio Value

                  1.0% of the first…………..………….$200,000
                  0.8% of the next…………..…………$300,000
                  0.7% of the next…………..…………$500,000
                  0.5% of the amount over..……..…..$1,000,000

The specific manner in which fees are billed by JLB is included in a client’s investment
advisory agreement, which is reviewed with prospective clients and executed upon
acceptance. The agreement specifies that investment advisory services may be terminated
in writing without notice. Accounts initiated or terminated during a quarter are charged a
prorated fee. Other than for aggregating related assets for billing purposes, the fee schedule
is not negotiable.

In computing a client’s quarterly fee, the amount is rounded to the nearest whole dollar.
For example, if the total gross quarterly fee were $510.73, the amount on the invoice would
be $511.00. If the fee were $510.37, the amount on the invoice would be $510.00. It is
desirable, but not mandatory, that management fees be deducted directly from client
accounts.

JLB’s fees are exclusive of brokerage commissions, transaction fees, and other related
expenses incurred by the client. Clients may incur certain charges imposed by custodians,
brokers 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. Such charges, fees and commissions
are exclusive of and in addition to JLB’s fee, and JLB does not receive any portion of these
commissions, fees and costs.

Mutual funds and exchange-traded funds (funds) charge internal management fees, which
are disclosed in a fund’s prospectus. JLB does not charge an additional management fee
on any funds purchased and held on behalf of clients. In circumstances involving funds
held at the inception of a new client relationship, where JLB has full investment discretion,
our management fee will apply, as those funds will be ultimately sold in the normal course
of managing the portfolio.

Item 7 – Types of Clients

JLB provides portfolio management services to individuals, trusts, corporations, and
employee benefit plans. In general, there is a minimum account size requirement of
$300,000, however, that amount can be adjusted based on such factors as an existing or
associated client relationship.