Wax Asset Management LLC

Item 5: Fees and Compensation

A. Fee Schedule

Investment Supervisory Services Fees

           Total Assets Under Management                  Annual Fee

                     All Assets                              2.00%

These fees are negotiable and the final fee schedule is attached as Exhibit II of the
Investment Advisory Contract. Fees are paid quarterly in arrears, and clients may

terminate their contracts with ninety days’ written notice. Because fees are charged in
arrears, no refund policy is necessary. Clients may terminate their accounts without
penalty within 5 business days of signing the advisory contract. Advisory fees are
withdrawn directly from the client’s accounts with client written authorization.

Treatment of Cash Balances

WAM considers cash to be an asset class. Cash held in the client’s investment accounts is
typically swept into the money market fund accounts or money market bank accounts at
the client’s custodian. During periodic portfolio reviews, WAM will generally discuss
upcoming cash flow needs with each client and seek to plan accordingly to meet those
needs. WAM includes cash and cash equivalents in the calculation of assets under
management and fees unless the client has negotiated a special arrangement for a specific
cash balance. During periods of exceedingly low short-term interest rates, client fees paid
on cash balances will exceed money market yields. Cash balances may rise if WAM is
unable to identify suitable opportunities for client investments.

B. Payment of Fees

Payment of Investment Supervisory Fees

Advisory fees are withdrawn directly from the client’s accounts with client written
authorization. Fees are paid quarterly in arrears.

C. Clients Are Responsible For Third Party Fees

Clients are responsible for the payment of all third party fees (i.e. custodian fees, mutual
fund fees, transaction fees, etc.). Those fees are separate and distinct from the fees and
expenses charged by WAM. To the extent your assets are invested in mutual funds, ETFs
or other pooled investment vehicles, in addition to the WAM advisory fee, you will incur
the internal management and operating fees and expenses, which may include 12b-1 fees,
mutual fund management fees, and other fees and expenses that may be assessed by the
investment vehicle’s sponsor, custodian, adviser, or other service providers. Such fees are
not included in WAM’s advisory fee. Further information regarding charges and fees
assessed may be found in the appropriate prospectus, and/or annual report and/or
custodial agreement. You may be able to pay lower fees and expenses by investing directly
in those investment vehicles.

Please see Item 12 of this brochure regarding broker/custodian.

D. Prepayment of Fees

WAM collects its fees in arrears. It does not collect fees in advance.

       E. Outside Compensation For the Sale of Securities to Clients
       Neither WAM nor its supervised persons accept any compensation for the sale of
       securities or other investment products, including asset-based sales charges or services
       fees from the sale of mutual funds.

Item 7: Types of Clients
WAM generally provides management supervisory services to the following types of clients:

           Individuals
           High-Net-Worth Individuals

Minimum Account Size
There is an account minimum, $100,000, which may be waived by WAM, based on the needs of
the client and the complexity of the situation.