Monk Stanley Earl

Item 5. Fees and Compensation

The quarterly memos I send clients include the calculation of my fee. Investment management services
are offered on a fee basis related to the market value of the assets under management at the end of the
quarter. Clients are generally billed at the following annual rates: 1% of the first $250,000 under
management (.25% quarterly), ¾% of the next $250,000 under management (total assets from $250,001
to $500,000) (.1875% quarterly), and ½% of all assets above $500,000 (.125% quarterly). Under unusual
circumstances fees may be negotiated. Fees are payable in arrears, they are not payable in advance.
With the client’s consent, I may have fees deducted from assets held in client accounts with Charles
Schwab & Co., Inc. (see Item 12. Brokerage Practices, below). I do not charge fees for assets for which I
do not make investment recommendations. I am not a stockbroker or an insurance broker and receive
no commissions from the sales of the products I recommend. I receive no referral fees, nor do I split
fees with other professionals. My fees are separate from, and in addition to, any advisory fees charged
by the mutual funds I recommend. Clients may pay commissions on transactions I recommend that are
executed by Charles Schwab & Co., Inc. (see Item 12. Brokerage Practices, below.) Clients can generally
purchase the investments I recommend through brokers other than Charles Schwab & Co., Inc.

 When I act as an investment adviser, I must act in the client’s best interest and not put my interest
ahead of theirs. At the same time, the way I make money creates some conflicts with their interests. As
an example, as an adviser that charges an asset-based fee, the more assets there are in a client’s
advisory account, the more I receive in fees. I therefore have an incentive to encourage clients to
increase the assets in their account. Other examples of conflicts of interest are discussed in Items 12

and 14 below. Clients should understand and ask me about these conflicts because they can affect the
investment advice I provide.

Item 7. Types of Clients

With the exception of one pro bono client, a nursery school, I provide services only to individuals.