The David J Yvars Group Inc

Item 5: Fees and Compensation

Compensation
DJY bases its fees on a percentage of assets under management. DJY’s fee schedules are
described below.

Compensation – Investment Advisory Services
For investment advisory services, the client will pay annualized advisory fees as follows.

                     Portfolio Value        Equity/Balanced       Fixed Income
                      First $500,000             3.00%                1.25%
                      Next $500,000              2.20%                1.10%
                     Next $4,000,000             1.60%                1.00%
                    Above $5,000,000             1.40%                0.80%

The advisory fee will be due and payable quarterly in advance based on the market value of the
account assets including cash under management as of the close of business on the last business
day of the preceding quarter. Clients also elect to be invoiced directly for fees or to authorize DJY
to directly debit fees from client accounts. Upon termination of any account, any earned, unpaid
fees will be due and payable. The advisory fee will be payable when the account is established,
pro-rated for the first partial quarter.

Compensation – Financial Planning
DJY generally does not charge a separate fee for financial planning services.

Agreement Terms
A client may terminate the client agreement at any time by notifying DJY in writing and paying
the rate for the time spent on the investment advisory engagement prior to notification of
termination.

Cash Balances
Some of your assets may be held as cash and remain uninvested. Holding a portion of your assets
in cash and cash alternatives, i.e., money market fund shares, may be based on your desire to
have an allocation to cash as an asset class, to support a phased market entrance strategy, to
facilitate transaction execution, to have available funds for withdrawal needs or to pay fees or to
provide for asset protection during periods of volatile market conditions. Your cash and cash
equivalents will be subject to our investment advisory fees unless otherwise agreed upon. You
may experience negative performance on the cash portion of your portfolio if the investment
advisory fees charged are higher than the returns you receive from your cash.

General Information on Compensation
In certain circumstances, fees, account minimums and payment terms are negotiable depending
on client’s unique situation – such as the size of the aggregate related party portfolio size, family

holdings, low-cost basis securities, or certain passively advised investments and pre-existing
relationships with clients. Certain clients may pay more or less than others depending on the
amount of assets, type of portfolio, or the time involved, the degree of responsibility assumed,
complexity of the engagement, special skills needed to solve problems, the application of
experience and knowledge of the client’s situation. Lower fees for comparable services may be
available from other sources.

DJY’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which shall be incurred by the client. Clients will incur certain charges imposed by
custodians, brokers, third party investment and other third parties such as fees charged by
managers, custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire
transfer and electronic fund fees, and other fees and taxes on brokerage accounts and securities
transactions.

Mutual funds and variable annuity sub-account fees and expenses are described in each fund’s
or sub account’s prospectus. These fees will generally include a management fee, other
expenses, and a possible distribution fee. If the fund also imposes sales charges, a client may pay
an initial or deferred sales charge.

Such charges, fees and commissions are exclusive of and in addition to DJY’s fee, and DJY shall
not receive any portion of these commissions, fees, and costs.

Apart from the personal client service provided directly by DJY, services identical to DJY’s may be
provided by other investment advisers for advisory fees that may be greater than or less than the
advisory fees charged by DJY.

Compensation for the Sale of Securities or Other Investment Products
David J. Yvars, Sr., CEO and Chief Compliance Officer, is a licensed insurance agent. To the extent
that Mr. Yvars receives commission-based compensation from his capacity as an insurance agent,
such compensation presents a conflict of interest because Mr. Yvars has a financial incentive to
sell insurance products to you. Clients are under no obligation, contractually or otherwise, to
purchase insurance products through Mr. Yvars. As a fiduciary, it is our firm's obligation to always
act in our client's best interest.

Types of Clients
As described in Item 4, DJY‘s clients include individuals, high net worth individuals, pension and
profit-sharing plans, trusts, estates, corporations and defined contribution plans.

Account Minimums
The minimum portfolio size is $500,000 for investment advisory clients, although this may be
negotiable under certain circumstances. Waivers or exceptions may be granted at the exclusive
discretion of DJY. DJY may group certain related client accounts for the purposes of achieving the
minimum account size.