MANAGEMENT FEES

The Company's fee structure applies to the total market value of the assets managed at the end of each calendar quarter. Fees for accounts opened or closed during the quarter are pro-rated.

There is no minimum account size required for starting or maintaining an account. There is, however, a minimum quarterly fee of $2,500. The minimum may be waived at the discretion of the portfolio manager.

Following each calendar quarter, clients receive an invoice for the quarterly fee. Related accounts are consolidated for fee purposes.

Fees for accounts under $10,000,000 are generally not negotiable. However, fees may be negotiated under certain conditions, e.g., related accounts, unmanaged assets, etc. The Company may alter its fee schedule from time to time.

Fees for consulting services are charged on an hourly basis. Normally a retainer is required.

Investment services may be discontinued at any time without penalty. The contract between the Company and Client, whether verbal or written, cannot be assigned without written client consent.