Jones Barclay Boston & Company

Fees and Compensation (Item 4)

Jones Barclay Boston & Company is a fee-only consultant, planner, and wealth manager. JBB provides
independent objective service and advice. JBB receives no commissions from transactions. JBB charges
a graduated financial planning and asset management fee as follows:

                             Assets Under Management              Fee Applied
                       Assets up to $2,500,000                        1%
                       Assets from $2,500,001 to $10,000,000        0.75%
                       Assets over $10,000,000                      0.50%

In addition to investment advice and portfolio management, the asset management fee may cover
financial planning for some clients. In addition to paying JBB’s fee, client’s investment assets will be
subject to fees and costs charged by mutual funds, separate account managers, private placement
sponsors, and custodians.

For clients that seek planning services with JBB but do not currently require investment advice and
portfolio management by the firm, we may offer a flat annual fee arrangement for financial planning
and wealth management services. For clients where JBB provides investment advice and portfolio
management and client requests financial planning services beyond what is included at their asset level
a flat fee arrangement may be negotiated. Fee arrangements vary based upon the estimated time
required, staffing requirements, and the complexity of the engagement.

Clients with assets managed by JBB have their fees deducted from their custodial account and credited
to JBB on a quarterly basis.   These clients sign an authorization form provided by the custodian
authorizing the deduction of the fees.

JBB provides investment advice to some family, friends, and employees where no fee is charged. There
are also a small number of instances where no fee is charged to a client for assets held by JBB but not
actively managed by JBB.

Clients with financial planning only engagements having no assets directly managed by JBB are billed
directly.

Performance-Based Fees and Side-By-Side Management (Item 6)

Jones Barclay Boston & Company does not accept or participate in Performance Based Fees

Types of Clients (Item 7)

Jones Barclay Boston primarily provides advice and planning to individuals, affluent families,
professional athletes and business owners.

Methods of Analysis, Investment Strategies and Risk of Loss (Item 8)

JBB believes in and encourages long term investors to consider a significant stock position in order to
achieve higher long term returns. Clients with investment horizons or portions of portfolios with time
requirements shorter than 3 years are generally advised to seek a larger allocation to cash, cash
equivalents, and fixed income investments to meet short term goals and dampen volatility during
shorter periods. Diversification is a method valued by JBB for mitigating risk in the stock portion of
investment portfolios. JBB typically views six major asset classes: US Large Company, US Midcap
Company, US Small Company, Developed International, Emerging Markets, and Real Estate.

Over a 25-30 year cycle, JBB expects that the average annual rate of return for all the asset classes
above will be comparable. However, over shorter cycles, any one of the asset classes may be far
superior or far worse than the others.       Markets move to extremes, and JBB takes advantage by
overweighting the sectors that offer exceptional value when considering their historical relationships.
The strategy is not overly complicated and is effective because most investors are focused on short
term returns, which leads to chasing overvalued equities in hot markets, proving to be a poor long
term investment strategy.      Our strategy does require patience and discipline. It is impossible to
consistently gauge the time that sentiment will change and conditions will reverse periodically leading
to losses in the relatively short term.

Another strategy that JBB employs to add value over the market is by selecting superior managers for
each sector in a selected asset class. JBB primarily uses mutual funds as the most cost-effective way to
access some of the best managers in the businesses that focus on one particular area of the market.
Mutual funds offer professional money management, diversification, and low cost access to all areas of
the market. JBB believes that the mutual fund managers are in superior positions to find some stocks
that achieve extreme upside value. Stocks/Equities provide higher returns because clients assume
greater risk in the form of periodic declines. Clients must be prepared for the periods in the markets
when the risk is actually realized. JBB will use other investment vehicles beyond mutual funds when it
is necessary to meet client goals once risk tolerance has been fully analyzed for respective clients.

JBB requires each client to complete and sign in writing an investment proposal before funds are
actually invested. JBB recognizes that every client has different goals, time horizons, experience, and
risk tolerance; therefore the strategies described above are implemented according to the written and
executed investment proposal agreed upon by the client and JBB.