Profocus Incorporated

Item 5 Fees and Compensation

Asset Management Fees
Pursuant to an Investment Advisory contract signed by each client, the client will pay ProFocus
an annual management fee, payable quarterly in arrears, based on the value of portfolio assets of
the account on the last business day of the preceding quarter. The management fee may be adjusted
to account for significant contributions or withdrawals made to the account during the quarter.
New account fees will be prorated from the inception of the account to the end of the first quarter.

Management fees range from 2.0% per annum to 0.5% per annum depending on the type and
complexity of the investment management strategy employed as well as the size of the account or
overall client relationship. For trusts other than living trusts the minimum fee is 2.0% per annum.
For clients with assets managed by ProFocus greater than $250,000, financial planning with up to
two meetings per year is included in the asset management fee. If the client meets with the Advisor
more than two times per year, the Advisor will invoice the client at the hourly rate described below.
For clients with $250,000 or less being managed by ProFocus, any financial planning services will
be invoiced at the Advisor’s hourly rate described below, in addition to the asset management fee,
which will be charged at the negotiated rate. The minimum fee for asset management is
$175/quarter. These fees may be negotiated by ProFocus at its sole discretion. Asset management
fees will be directly deducted from the client account on a quarterly basis by the Custodian. The
client will give written authorization permitting the Advisor to be paid directly from their account
held by the custodian. The custodian will send a statement at least quarterly to the client and the
Advisor will also send an invoice to the client outlining the fee calculation and the amount
withdrawn from the client account.

Hourly Fee
Some clients will contract to have investment advisory advice, financial planning advice, and
business management services provided based on an hourly fee. The Advisors hourly fee will be
billed at a rate of $325 per hour, and may be negotiated in advance. Hourly fee-based clients are
billed on a quarterly basis and upon completion of work performed.

For each of the Advisor's services described above, the Client may terminate these services within
five business days of the effective date of an Agreement signed with the Advisor without any
payment of the Advisor's fee.

ProFocus Incorporated                       Page 5

At no time will ProFocus accept or maintain custody of a client’s funds or securities except for
authorized fee deduction. Client is responsible for all custodial and securities execution fees
charged by the custodian and executing broker-dealer. The Advisor’s fee is separate and distinct
from the custodian and execution fees.

Neither ProFocus nor its supervised persons accept compensation for the sale of securities or other
investment products, including asset-based sales charges or service fees from the sale of mutual
funds.

Item 7 Types of Clients

The Advisor will offer its services to individuals, pension and profit sharing plans, corporations
and other business entities.

The Advisor’s cumulative minimum account requirement for opening and maintaining an account
is $250,000, and the minimum asset management fee is $175/quarter. However, the Advisor may,
at its sole discretion, accept accounts with a lower value. For accounts paying the minimum annual
asset management fee, the fee will not exceed 2% per annum of assets under management.