Sander Capital Advisors Inc

Item 5   Fees and Compensation

The portfolio management fee is based on the fair market value of securities and cash included in
the client’s account. The annual fee schedule, payable quarterly in advance, is as follows:

                           1.50% of portfolio value on the first $2 million
                           1.0% of portfolio value on the next $3 million
                        .80% of portfolio value on amounts above $5 million

Clients can choose to authorize the Custodian to issue to Sander Capital Advisors, from cash
proceeds in their account, a check in the amount of each quarterly billing as received or have
Sander Capital Advisors bill them directly.

These fees are used as a guideline, but can be negotiable. Every three months we bill the account
1/4 of the yearly fee. The fees are charged in advance. The start date depends on when the
account is opened. If a client decides to leave the firm we will refund the fee amount as a
percentage of the month they leave. In addition to these fees there are broker commissions every
time a trade is placed in the account.

No one at the firm receives a commission for the sale of securities or mutual funds.

Item 7     Types of Clients

Sander Capital manages money for individuals, trusts, estates, or charitable organizations, and
can service pension accounts as well.

The minimum account size is $200,000.