Peninsula Asset Management Inc

Item 5      Fees and Compensation

Peninsula charges fees based upon a percentage of the assets under management. Fees are negotiated
on a client by client basis based on several factors including but not limited to the investment objective (all
equity, all fixed income or a combination of equities and fixed income investments), size of the portfolio to
be managed and other relationships with Peninsula. Peninsula's fee schedule is as follows:

1.2%   on   the   first $1   million   of assets   under   management
1.0%   on   the   next $1    million   of assets   under   management
.75%   on   the   next $1    million   of assets   under   management
.50%   on   the   next $1    million   of assets   under   management

Amounts over $4 million are negotiable.

Management fees are calculated and payable quarterly, either in advance or in arrears, and are based on
the previous month end value from the date each bill is created. Quarterly management fees are deducted
directly from each client's account(s) . Clients receive a copy of each quarterly bill and the amount charged
each quarter also appears on the client's statement in the month in which it was charged.

In the event that a client terminates their relationship with Peninsula and the management fee has been
billed in advance, any unearned management fees will be refunded to the client.

All fees paid to Peninsula for investment services are separate and distinct from the fees and expenses
charged by exchange traded funds and mutual funds. Those fees may include a management fee,
custodial fees and other expenses which are described in more detail in each fund's prospectus. Clients
will incur brokerage and other transaction costs that are not included in Peninsula's management fee. For
more information about these type of expenses please see the section titled Brokerage.

From time to time Peninsula may choose to waive its management fees for any investment management
services provided to, or on behalf of, charitable accounts. This may include accounts managed for
churches, charities and other not-for-profit organizations .

Item 7      Types of Clients

Peninsula generally provides investment advice to individuals, pension and profit sharing plans, trusts ,
estates and charitable organizations. Although Peninsula does not impose a minimum account size it is
recommended that clients establish accounts with at least $250,000 of investable assets.