John A Wolfe & Associates Inc

ITEM 5: FEES AND COMPENSATION
A. FEE SCHEDULES

JAWA, Inc. is a fee-only investment advisory; its only revenues are the fees paid by
clients.

  1. Asset Management Services. JAWA, Inc.’s annual fee rates range from a
     maximum of .75% to .15% of the value of the assets under management. The
     Adviser reserves the right to negotiate its management fee rate with each client.
     Fees are determined at the time of engagement and set forth in the Client Service
     Agreement.

  2. Assets Under Advisement Services. JAWA, Inc. may agree to provide back-
     office administrative reporting services for non-managed investments (“Assets
     under Advisement”) and include these holdings in its portfolio reports. If agreed,
     an account administrative charge may apply, ranging from .12% to .60% annually,
     depending on whether additional services (such as reviews or general
     consultations) apply. The lower end of the fee range is typically applied to assets
     held by nonprofit organizations. The fee is determined at the time of engagement.

Fees are billed in arrears in May, September and January for the four prior months. For
partial months, a daily fee is calculated by multiplying the daily valuation of billable
assets by 1/365th of the annual fee rate. The market value of the account is set by the
client’s custodian. Each partial month’s fee is the sum of that month’s daily fee
calculations. A full monthly fee is calculated by multiplying the month end billable asset
valuation by the month’s fee factor, which is 1/365th of the annual fee rate times the
month’s number of days. Clients receive statements showing their monthly fees, their
fee rates and their account monthly ending values and average monthly values. A report
showing every detail of the fee calculation can be provided upon request.

If during the engagement the scope of the requested services should change or the
client’s circumstances or requested services should alter dramatically, the Adviser may
adjust its fee with a 30-day written notice. During this prenotification period, clients are
welcome to terminate services with a 30-day notice. In such cases, the client’s fee will
remain unchanged and charged only until the effective date of termination.

B. PAYMENT OF ADVISORY FEES

Payment of JAWA, Inc.’s fees may be made directly to the Adviser or through a debit
directly to the client’s account by the qualified custodian holding the client’s funds and
securities. The Adviser follows the following criteria when payment is made via a
qualified custodian as required by the SEC’s Investment Advisers Act of 1940, as
amended:

1) The client provides written authorization permitting the fees to be paid directly from
the client’s account held by the independent qualified custodian and the authorization
is limited to withdrawing contractually agreed upon Investment Adviser fees; (2) The
client will directly receive regular (monthly or quarterly) reports directly from the qualified
custodian which reflect the Adviser’s fee deduction; (3) The frequency of fee withdrawal
shall be specified in the written authorization/agreement; (4) The custodian of the
account shall be advised in writing of the limitation on the Adviser’s access to the
account and; (5) The client shall be able to terminate the written billing authorization or
agreement at any time.

If the designated account(s) do not contain sufficient funds to pay advisory fees, the
client can leave standing orders to deduct fees via other accounts. In the absence of

alternate instructions, the Adviser will issue an invoice for advisory fees to the client and
payment is expected with 10 days of the invoice date.

It is important to note that custodial firms do not verify advisory fees. Therefore, clients
should review their custodial statements carefully. If a client should have any questions
or concerns in connection with an advisory fee deduction, they should promptly contact
JAWA, Inc.

If at any time during the engagement the client fails to directly receive the regular
statements produced by the custodian, it is important for the client to promptly notify
JAWA, Inc. and the custodial firm. If client(s) should move, it is vitally important to
provide the Adviser and the custodial firm with the new contact information.

C. FEES ASSOCIATED WITH INVESTING

Clients are responsible for the payment of all third-party fees associated with investing.
Clients may pay transaction and brokerage commission to their broker/dealer or other
service providers (Financial Institution[s]) as well as any fees associated with their
particular accounts (e.g., account opening, maintenance, transfer, termination, wire
transfer, retirement plan, trust fees, and all such applicable third party fees, deferred
sales charges, oddlot differentials, transfer taxes, wire transfer and electronic fund fees,
and other fees and taxes on brokerage accounts and securities transactions. All fees
paid to the Adviser for advisory services are separate from the fees and expenses
charged to shareholders of ETF’s or mutual fund shares offered by mutual fund
companies. If a mutual fund previously purchased by or selected by a client should
impose a sales charge, a client may pay an initial or deferred sales charge. JAWA, Inc.
does not receive any portion of these investment-related fees. Such charges, fees and
commissions are exclusive of and in addition to the Adviser’s fees. A complete
explanation of the expenses charged by a mutual fund or ETF is contained in the
respective mutual fund prospectus. Clients are encouraged to read each prospectus
and securities offering document.

D. PREPAYMENT OF FEES

JAWA, Inc.’s fees are invoiced in arrears.

JAWA, Inc.’s services will continue until either party receives a written notice of
termination. Where services are terminated prior to the end of a billing period, the
Adviser will only invoice the client for services provided up until the effective date of
...

ITEM 7: TYPES OF CLIENTS
                       AND MINIMUM ACCOUNT SIZE
JAWA, Inc. provides services to individuals, pension and profit sharing plans, trusts,
estates, endowments, charitable organizations, and corporations or other business
entities.

If an account is subject to the Employee Retirement Income Security Act of 1974, as
amended, (“ERISA”), JAWA, Inc. acknowledges that it is a fiduciary within the meaning
of the Act and the ERISA client is a named fiduciary with respect to the control or
management of the assets in the Account. In each instance, the client will agree to
obtain and maintain a bond satisfying the requirements of Section 412 of ERISA and to
include the Adviser and the Adviser’s principals, agents, and employees under those
insured under that bond and will deliver to the Adviser a copy of the governing plan
documents. If the Account assets for which the Adviser provides services represent only
a portion of the assets of an employee benefit plan, the client will remain responsible
for determining an appropriate overall diversification policy for the assets of such plan.

JAWA, Inc. suggests an opening portfolio balance of $500,000. The Adviser, at its sole
discretion, reserves the right to accept portfolios that do not meet the minimum where
special circumstances exist, for family members of clients or the Adviser’s personnel,
charitable organizations, pre-existing relationships, or where the client has the ability to
meet the minimum portfolio amount within a reasonable time period.

JAWA, Inc. reserves the right to decline to offer services to any person or firm at its sole
discretion.