Lauer Capital Management Ltd

Item 5

Lauer Capital Management Ltd. is compensated on a fee-only basis. We do not receive
any compensation from commissions, mutual fund distribution fees, or markups. The
management fee is based on a percentage of the assets under management. The
annual fee schedule is 1.00% of the market value of assets up to $1,000,000, 0.75% of
the next $1,000,000 of assets, and 0.50% of assets over $2,000,000. The fee is paid
quarterly, at the end of each quarter and will be based on account asset values on the
last business day of the quarter. Portfolio valuation is based on prices provided by the
custodian or third-party pricing services. Clients may elect to be billed directly for fees
or to authorize Lauer Capital Management Ltd. to directly debit fees from client
accounts after the end of the quarter.

We may aggregate related family accounts for fee billing purposes. Fees for aggregated
accounts are allocated on a pro rata basis among the various underlying accounts. In
cases where a client has made a large deposit into their account toward the end of a
quarter, we may exclude that deposit from the billing calculation. Also, we may exclude
certain assets (such as legacy assets that are directed by the client or illiquid assets)
from billing calculations.

On an occasional and infrequent basis, we offer consulting services for an hourly fee.
The hourly fee is $200 and is paid after the consultations. Clients have the option to
implement the recommendations of our consulting work on their own through the
investment provider of their choice. Fees for investment management and consulting
services are negotiable given the size and complexity of the work involved. Clients may
terminate services at any time, without the payment of any penalty, upon receipt of
written notice by Lauer Capital Management Ltd. Clients are not charged for services
they have not received.

Clients will also incur costs related to custodians, mutual fund expenses, and
transaction/trading costs. Please see “Item 12. Brokerage Practices.”

Lauer Capital Management Ltd., 1720 S. Spring Avenue, Sioux Falls, SD 57105                       5

Form ADV: Part 2A                                                             SEC File No. 801-48112

                      PERFORMANCE-BASED FEES AND SIDE-BY-SIDE MANAGEMENT

Item 7

Lauer Capital Management Ltd. provides portfolio management services to individuals,
high net worth individuals, trusts, estates, charitable institutions, foundations,
endowments, corporations and business entities.

Lauer Capital Management Ltd., 1720 S. Spring Avenue, Sioux Falls, SD 57105                       7

Form ADV: Part 2A                                                             SEC File No. 801-48112

                   METHODS OF ANALYSIS, INVESTMENT STRATEGIES, AND RISK OF LOSS