JM Forbes & Co LLP

Item 5 – Fees and Compensation

The primary form of advisory compensation for J.M. Forbes & Co. LLP is a management fee based
on the following rates:

Fee on Principal:   Market Value of Account                 Annual Rate

                           First $500,000                      0.95%
                          Next $1,000,000                      0.85%
                          Next $1,000,000                      0.75%
                          Next $2,500,000                      0.65%
                          Next $5,000,000                      0.45%
                         Next $40,000,000                      0.38%
                         Over $50,000,000                      0.35%

These fees are generally not negotiable. The firm charges each account directly on the 16th of each
month. The management fee is based on the market value at the end of the previous month.

Clients may also receive general investment advice, or advice in connection with estate planning,
retirement planning, or any other investment or financial concern. Such advice is generally covered
within our management fee, but we reserve the right to charge separately if a project requires more
than a few hours of time. In such an instance a fee or hourly rate would be agreed in advance with
the client. The fee schedules for tax and executor services are available upon request.

Upon termination of an advisory relationship, any prepaid, unearned fees will be promptly
refunded and any earned but unpaid fees will be due and payable. Similar advisory services may
be available from other registered investment advisers for lower fees.

Mutual funds and exchange-traded funds in which client assets are invested also charge
management fees and incur expenses, and may impose initial or deferred sales charges, which are
disclosed in the fund’s prospectus or other offering document, which is available upon request. J.M.
Forbes & Co.’s fees are not reduced by the amount of these fees, expenses or charges but the firm
selects such funds with care to minimize fee burdens. Fees charged for custody services are paid
by J.M. Forbes & Co. LLP and not passed on to clients. J.M. Forbes & Co. LLP’s fees do not include
brokerage commissions and other transaction costs incurred in the management of the accounts.
Please see “Brokerage Practices” below for a description of the factors that we consider in selecting
or recommending broker-dealers for client transactions. Clients may at times incur other charges
imposed by custodians, brokers or other third parties, including but not limited to transfer taxes.

We receive no loads, 12b-1 or other account servicing fees from any fund or investment manager,
nor any portion of any of the fees and charges referred to above.

Item 7 – Types of Clients

J.M. Forbes & Co. LLP provides portfolio management services to individuals, retirement accounts,
pension and profit sharing plans, trusts, estates, and charitable organizations and corporations. In
many cases, the client is a trust for which a J.M. Forbes & Co. LLP Partner serves as trustee.

In general, we expect a new client will bring three to five million dollars into the firm to start the
relationship. This threshold is not hard and fast and it may be met by a group of related accounts
arriving together, or a smaller account related to that of an existing client or one for which additional
assets are anticipated in future.