Wilsey Asset Management Incorporated

ITEM 5 – Fees and Compensation
WAM accesses an investment management fee based on client’s initial and subsequent
contribution amount (not on the asset’s growth). The management fee is calculated on the last
day of the month in accordance with the following tiered fee schedule:
 Client Account(s) Aggregate Contribution        WAM’s Annual Fee
 Amount
 $100,000 - 249,999                              1.5%
 $250,000 - 499,999                              1.4%
 $500,000 - 749,999                              1.3%
 $750,000 - 1,249,999                            1.1%
 $1,250,000 - 1,999,999                          0.8%
 $2,000,000 +                                    0.6%

 $5,000,000 +                                      0.5%
For example, if a client opens two accounts with WAM valued at $100,000 respectively, the
client would be assessed 1.5% annually ($200,000 initial aggregate contribution amount x 1.5%
annual fee = $3,000 investment management fee). The client will continue to be assessed WAM’s
Annual Fee of 1.5% regardless of asset growth until additional contributions are made. If next
year the client’s spouse opens a retirement account with WAM valued at $300,000, then the
client’s new aggregate contribution amount will be $500,000 and the client would then be
assessed 1.3% annually thereafter.

For purposes of aggregation of contribution amounts, contributions for account(s) will be
aggregated based on “household.” For example, husband, wife, domestic partners, minor
children, and other relatives living at the same residential address will be aggregated for purposes
of fee billing only, to achieve certain breakpoints based on the household’s aggregate
contribution amounts.

Except as otherwise noted, WAM charges an annualized management fee based on the broker
dealer custodian selected for client’s account(s):

For client account(s) custodied at Charles Schwab & Co or LPL, management fees are assessed
monthly, paid in advance, and are based on the aggregate contribution amounts of all account(s)
as of the last day of the month.

Investment management fees will be submitted to the Custodian of record and debited from the
client's account(s) following the last business day of each month or quarter. Advisory fees are
prorated based on the number of days the account(s) are open during the month, and the first
payment is due at the beginning of the month following the effective date of this Agreement and
will be based upon the aggregate contribution amount for all client account(s) on that effective
date. Additional deposits of cash and/or any securities will be subject to the same billing
procedures. In the event this Agreement is terminated, WAM’s fees will be prorated through the
date of termination and such prorated fees will be assessed through the last date of service and
any refunds due will be issued at the end of the month.

In addition to the investment advisory fees described above, Account(s) may incur certain
charges or fees imposed by third parties other than WAM. Such costs include, but are not limited
to: custodial fees, mutual fund 12b-1 fees, certain deferred sales charges on previously purchased
mutual funds transferred into the account(s), retirement plan administration fees, other
transaction fees, interest charged on margin borrowing, bank service fees, interest charged on
debit balanced, “spreads” imposed by brokers and dealers representing implicit transaction costs,
commissions and transfer taxes. Information regarding fees or charges assessed by any mutual
funds held in client accounts is available in the appropriate prospectus.

In its sole discretion, WAM will negotiate fees (particularly for legacy clients and friends and
family of the firm) to lower the management fee to between 0% and 1.45%.

The management fees for ERISA accounts will be detailed and fully described in the ERISA Plan
Client Agreement.

Consulting Fees

WAM’s consulting fees range from $350.00 to $400.00 per hour and are billed in one-hour
minimum increments. WAM requires clients to pay for the first hour in advance of services
rendered with any remaining balance due upon completion of the contracted services. If clients
elect to implement recommendations, there may be additional costs or charges associated with
the implementation.

Financial Planning Fees
Financial planning fees range from $1,500 to $10,000 as negotiated between WAM and
client. Typically, for ongoing services, a $50.00 monthly retainer is required. The hourly
consultation rate is $250.00 per hour.

ITEM 7 – Types of Clients
WAM provides portfolio management services to individuals, pensions, profit sharing plans,
trusts, estates or charitable organizations, corporations, and business entities. There is a $100,000
account minimum.

For the Wealth Builder Program, the account minimum is waived with monthly deposits.

WAM generally requires a minimum portfolio size or a minimum initial investment of $100,000
to open an account but does reserve the right to waive this minimum and accept, decline, or
terminate a client for any reason at WAM’s discretion. Client may make cash additions to and/or
withdrawals from the Account(s) at any time. Client acknowledges that cash will be made
available for withdrawal only when transactions effected to raise cash are settled. In the case of
clients who are invested in certain mutual funds, it could take up to seven (7) business days
dependent upon the terms of the investment.