Wallender Timothy Joseph

Fees and Compensation                                                           ITEM 5

Investment advisory services are offered for a fee determined by a percentage of
assets under management.

The fee for the investment advisory service is an annual advisory fee equal to .75%
or less of the market value of assets in the clients’ accounts. No minimum fee is
assessed. Prorated quarterly fees are due and payable to TIMOTHY JOSEPH
WALLENDER upon execution of the Advisor Authorization Agreement. Subsequent
quarterly fees are computed based on the chart below and deducted quarterly from
the clients’ accounts. Clients enter into a written agreement with the custodian (e.g.
Schwab) authorizing Timothy Joseph Wallender to deduct fees from clients’
accounts on a quarterly calendar basis according to the following fee schedule
effective per Advisor Agreement.

        ASSETS            PER ANNUM       PER QUARTER

    $3K to $249,999           0.75%           0.1875%
 Next $250K to $499,999       0.50%            0.125%
  Next $500K to $2M           0.25%           0.0625%
       Over $2M               0.10%            0.025%

TIMOTHY JOSEPH WALLENDER also provides financial planning services to clients
and prepares financial plans. A free retirement plan is normally provided to
potential clients. Existing clients are offered a free update once per year.

Fees are collected in advance by TIMOTHY JOSEPH WALLENDER based on the
account value as of the last day of the previous quarter. Clients have an
unconditional right of rescission of five (5) business days from receipt of fees. The
services may be terminated by either party upon thirty (30) days prior written
notice. The fees for the quarter in which termination of this service occurs are
prorated from the date of termination receipt in writing and refunded to the client.
Because implementation of the investment advisory service involves mutual funds,
clients are advised that additional management fees are incurred through the use of
such mutual funds. Additionally, commissions, transaction fees, and/or account
maintenance fees may be collected by the broker as a result of trading depending on
the type of transaction taking place. The client will be made aware of all fees
incurred as a result of such transactions. Comparable services may be available
elsewhere for more or less.

The primary type of investment vehicle used is no-load mutual funds. This results
in no load, commission, or benefit received by TIMOTHY JOSEPH WALLENDER.
Annuities are also converted to mutual fund products where possible to reduce
costs resulting in no load or commission to TIMOTHY JOSEPH WALLENDER.
Although transaction costs will vary depending on the firm being used to
implement the advisory recommendations, there is no financial benefit to
TIMOTHY JOSEPH WALLENDER. Where possible, Schwab will be used as the
broker due to their discount fee structure.

Types of Clients                                                                   ITEM 7

TIMOTHY JOSEPH WALLENDER primarily provides investment advice to
individuals. On occasion, investment advice is provided to pension and profit
sharing plans, trusts, estates, charitable organizations, corporations and other
business entities other than those listed above.

In order to more effectively utilize the Investment Strategy described in “ITEM 8”
below, accounts with values of $30,000 and more are desired, but not required.

Methods of Analysis, Investment Strategies                                        ITEM8
And Risk of Loss

TIMOTHY JOSEPH WALLENDER utilizes Modern Portfolio Theory to construct
efficient portfolios tailored to each client’s individual risk tolerance and time
horizon. Modern Portfolio Theory involves using a mix of securities that have low
correlations with each other in an attempt to reduce overall portfolio volatility and
maximize return. This investment strategy is designed for a longer-term buy-and-
hold strategy (securities held at least one year or longer).

The general objective of this service is to 1) preserve capital or 2) obtain capital
growth without regard as to of income taxation on growth and income. TIMOTHY
JOSEPH WALLENDER is duly authorized by the clients to continuously monitor and
evaluate the investment and reinvestment of each client’s account. Separate
portfolios are developed based on varying risk tolerances, with the primary
objective being to maximize the client’s rate of return on a risk adjusted basis.

Clients are matched to the risk tolerance of the desired portfolio and, where
requested, can be customized to the client’s needs. TIMOTHY JOSEPH WALLENDER
may, at its discretion, develop alternate portfolios and fee schedules in response to
specific client’s needs.

The methods used to analyze securities include both fundamental and technical
analysis.

Fundamental analysis involves using financial newspapers, magazines, research
prepared by third party vendors such as Morningstar, corporate rating services,
prospectuses, company annual reports, company press releases, and a variety of
mathematical valuation models. The risk inherent with fundamental analysis is that
these sources cannot guarantee an increase in portfolio value. Even after careful
research, the portfolio may lose value and be subject to a variety of risks including,
but not limited to, market risk, interest rate risk, financial risk, and business risk.

Technical analysis involves using historical chart data in an attempt to purchase a
security at an opportunistic time. The risk inherent with technical analysis is that
the method may fail all together with the security being purchased at the least
opportunistic time resulting in a loss of portfolio value.

All investments involve risk, including total loss of principal. All allocation models
have limits, and past performance cannot guarantee future results.