Assabet Advisors LLC

Item 5: Fees and Compensation

Compensation – Asset Management Services
We offer our services on a fee basis, based upon assets under management.

Investment Management Fees
We provide investment advisory services for an annual fee based upon a percentage of the
market value of the assets managed by us. The annual fee is prorated and charged quarterly in
arrears, based upon the market value of the assets, including cash, managed by us on the final
day of the previous quarter. The annual fee established for an individual client will be in a range
between 0.80% and 1.25% and depends upon several factors including the market value of
assets under management, the number of accounts and the type of management services to be
provided. Our annual fee is exclusive of, and in addition to brokerage commissions, transaction
fees, and other related costs and expenses which may be incurred by the client. We do not
receive any portion of these commissions, fees and costs.

The applicable rates paid by all of our investment management clients fall within the above
stated range.

Fees Charged by Financial Institutions
As further discussed in response to Item 12 (below) we recommend that clients use the
brokerage and clearing services of Fidelity Institutional Wealth Services (“Fidelity”) for
investment management accounts.

We will only implement our recommendations after the client has furnished us with all
information and authorization regarding accounts with the appropriate financial institution.
Financial institutions include Fidelity, any broker dealers directed by the client, trust companies,
banks, etc. (“Financial Institution”).

Clients may incur charges imposed by Financial Institutions and other third parties, including
custodial fees, fund management fees or other expenses imposed directly by a mutual fund or
ETF, which are disclosed in the fund’s prospectus, deferred sales charges, transfer taxes, wire
transfer and electronic fund fees, and other fees and taxes on brokerage accounts and
securities transactions. Clients also may incur brokerage commissions and transaction fees.
Such charges, fees and commissions are exclusive of and in addition to our fee. We do not
receive any portion of these commissions, fees and costs.

Fees Paid for Management During Partial Quarters of Service
During the initial quarterly period of investment management services, fees are calculated on a
pro rata basis.

The Agreement between Assabet and the client will remain in effect until terminated by either
party pursuant to the terms of the Agreement. Our fees will be prorated through the date of
termination.

Clients may make contributions to and withdrawals from their account at any time. Clients may
withdraw account assets on 5 days’ notice to the Firm. However, because we generally design
portfolios for a long-term time horizon, the withdrawal of assets may impair the achievement
of a client’s investment objectives.

Additions may be in cash or securities. We reserve the right to liquidate any transferred
securities or decline to accept them into the account. We will consult with our clients about
these decisions, including the advice that if securities are liquidated, the client may experience
transaction fees, fees assessed on the mutual fund level and/or tax ramifications.

In the event that assets exceeding $250,000 are deposited into or withdrawn from an account,
the fee payable with respect to those particular assets will be prorated according to the
number of days remaining in the quarter.

ERISA Plan Services
Fees for advice and services provided to ERISA retirement plans follow the same structure as
the non-ERISA accounts we manage. We do not utilize any investments that result in additional
compensation to the Firm or our employees.

All direct and indirect compensation will be described in the 408(b)(2) disclosure provided
when your ERISA account is established.

Agreement Terms
Either the client or the Firm may terminate the agreement at any time by notification in writing.
Though not typical, if a client made an advance payment, we would refund any unearned
portion of the advance payment.

Cash Balances
Some of your assets may be held as cash and remain uninvested. Holding a portion of your
assets in cash and cash alternatives, i.e., money market fund shares, may be based on your
desire to have an allocation to cash as an asset class, to support a phased market entrance
strategy, to facilitate transaction execution, to have available funds for withdrawal needs or to
pay fees or to provide for asset protection during periods of volatile market conditions, or to
shorten the duration of fixed income holdings. Your cash and cash equivalents will be subject to
our investment advisory fees unless otherwise agreed upon. You may experience negative
performance on the cash portion of your portfolio if the investment advisory fees charged are
higher than the returns you receive from your cash.

Retirement Plan Rollover Recommendations
As part of our investment advisory services to our clients, we may recommend that clients roll
assets from their employer’s retirement plan, such as a 401(k), 457, or ERISA 403(b) account
(collectively, a “Plan Account”), to an individual retirement account, such as a SIMPLE IRA, SEP
IRA, Traditional IRA, or Roth IRA (collectively, an “IRA Account”) that we will advise on the
client’s behalf. We may also recommend rollovers from IRA Accounts to Plan Accounts, from
Plan Accounts to Plan Accounts, and from IRA Accounts to IRA Accounts.

If the client elects to roll the assets to an IRA that is subject to our advisement, we will charge
the client an asset-based fee as set forth in the advisory agreement the client executed with our
firm. This creates a conflict of interest because it creates a financial incentive for our firm to
recommend the rollover to the client (i.e., receipt of additional fee-based compensation).
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Types of Clients
As described in Item 4, our clients may include individuals, corporations, pension and profit-
sharing plans, trusts, estates, charitable organizations and business entities.

Account Minimums
We typically require a minimum relationship size of $750,000 for investment advisory clients,
although this may be negotiable under certain circumstances. We may, in our sole discretion,
accept clients with assets below $750,000 after consideration of factors including, but not
limited to, anticipated future additional assets, related accounts, account composition, and pro
bono activities. We may aggregate portfolios of family members to meet the minimum
portfolio size.