SKA Financial Services Inc

Fees and Compensation

SKA is compensated for investment advisory services through a variety of fee structures
including a percentage of assets under management, hourly charges, or fixed fees. The fee
structure is mutually determined by SKA and the client based upon the level of service and
investment vehicles that are deemed to be appropriate for the account. Ongoing portfolio
management is subject to a portfolio management agreement in which accounts are managed on
a discretionary or non-discretionary basis as desired by the client. The standard fee schedule for a
full-service discretionary account is as follows:

               - 0.40% paid quarterly on the first $50,000 of Account Value,

               - 0.30% paid quarterly on the next $200,000 of Account Value,

               - 0.25% paid quarterly on the next $750,000 of Account Value, and

               - 0.20% paid quarterly on the Account Value over $1,000,000.

Account Value is the sum of the balance of all investment accounts for the client under
management by Adviser.

For non-discretionary accounts, there is no standard fee schedule as fees are determined
individually based on the service level requested by the client. All fees schedules are negotiable
due to the customizable nature of each client relationship. Fees for ongoing portfolio
management are billed quarterly directly from the client account or may be invoiced to the client
upon specific request.

SKA may utilize mutual funds or other similar investment products to invest all or part of the
assets in a client account as agreed to by the client to provide the level of diversification desired.
These mutual funds or other similar investment products are subject to indirect management fees
in addition to the direct management fees discussed above that reduce the net asset value of the
funds’ shares. The indirect management fees are to compensate the fund companies for their
investment research and administrative activities. SKA does not receive any compensation from
these investment companies.

In addition, the custodian selected may charge additional fees such as annual or custodial fees. If
exchange-traded investments are determined to be eligible investments under the client account
profile, SKA will discuss with the client the transaction costs or commissions that will be
associated with the purchase or sale of these securities. All custodian and brokerage charges are
determined by the custodian, not SKA, and SKA does not receive any portion of these charges.

Compensation to SKA for ongoing portfolio management is payable with the first installment
due at the execution of the portfolio management agreement; subsequent payments are due on a
quarterly basis, payable in advance. The client may terminate the agreement at any time with
written notice and receive a prorated refund of fees paid.

In addition to ongoing portfolio management, SKA also performs investment analysis services
on a project basis. These services include analyzing current investments, identifying investments

or money management services, or calculating performance results. The fee for these services is
based upon the nature of the engagement and the time required to complete it.

SKA also provides financial consulting services that include insurance needs analysis and
retirement, tax, and estate planning. The fee for these services varies depending on the facts to be
considered for each client and the time required. Hourly rates range from $75 to $200 with
discounted rates for extended engagements. All clients will receive an estimate of the cost prior
to the engagement. The fee for these services is payable with a retainer of 50% of the estimated
cost with the remainder due upon completion of the engagement unless structured otherwise as
agreed upon by the parties.

Types of Clients
SKA provides investment advice to individuals, corporations and other business entities, trusts,
estates, charitable organizations, and pension and profit-sharing plans. SKA does not require a
minimum account size to open or maintain an account.

Methods of Analysis, Investment Strategies and Risk of Loss

SKA's analysis methods are fundamental and technical. Fundamental analysis is used to identify
investment vehicles that meet our acceptable risk profile. Fundamental analysis relies heavily on
historical information; therefore, there is a material risk that the investment vehicles selected
may underperform expectations. SKA seeks to reduce this risk by diversifying holdings.
Technical analysis is utilized to develop purchase and sale price targets; however, it carries the
material risk of poor timing. Purchases can occur before significant declines resulting in losses,
and sales can occur prior to significant advances resulting in lost opportunities. SKA seeks to
reduce these risks by spreading transactions over relevant time horizons.

The main sources of information are financial media, inspections of corporate activities, research
material prepared by others, corporate rating services, annual reports, prospectuses, filings with
the Securities and Exchange Commission, and company press releases.

Strategies used to implement any investment advice given to clients include long-term purchases
(securities held at least a year), short-term purchases (securities sold within a year), short sales,
margin transactions, and option writing, including covered options, uncovered options, or
spreading strategies. Strategies that include short-term activity or options will usually incur a
higher level of transaction-related fees that may reduce the effectiveness of these strategies.

All investment strategies involve risk of loss that a client must be prepared to accept. SKA
believes that educating clients regarding the potential loss of principal and potential volatility of
returns is a vital component of our ongoing client relationships. The material risks involve not
only a loss of principal invested, but also the risk of not achieving desired results due to low or
negative rates of return. While SKA attempts to structure portfolios to minimize these risks,
performance is never guaranteed.