The Mathes Company Inc

Item 5         Fees and Compensation

Adviser is compensated for its advisory services by a percentage of assets under
management. The basic fee schedule is 1.25%

Fees can be negotiable if client has an account that is lightly managed. For example, if the
account is solely fixed income the fee may be reduced.

Fees are deducted quarterly from clients’ assets or clients are billed quarterly. Clients may
choose to have fees deducted or to be billed.

Other types of fees or expenses clients may pay in connection with our advisory services
include brokerage and other transaction costs.

Clients are not required to pay Adviser’s fees in advance, but may do so if they wish.

If a client pre-pays a fee, the client will receive a check for any fees overpaid for services,
determined on a per day basis.

Adviser does not 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

Adviser generally provides investment advice to individuals, high net worth individuals,
pension and profit sharing plans, trusts, estates, and charitable organizations.

Minimum account size for opening an account with the Adviser is generally $500,000.00