Asset Dedication LLC

Item 5 – Fees and Compensation

Fee Schedule
Asset Dedication charges clients an investment management fee based upon a percentage of the total
assets (including cash) being managed by Asset Dedication. The annual investment management fee rate
charged will vary depending upon the assets under management and the specific type of investment
management services and strategy selected.

    •   For clients of Third-Party Advisors, the maximum investment management fee is 0.35%.

    •   For clients of In-House Advisors, the maximum fee schedule is 1.85% of assets under
        management. Affiliated Advisors may charge clients additional flat fees for financial
        planning and other services in addition to or in lieu of the investment management fee.

Investment management fees are negotiable on a case-by-case basis.

Fees are usually payable at the beginning of each quarter, commonly referred to as in advance, and
deducted directly from the client’s account. Asset Dedication may bill the client’s account at the end
of the quarter, commonly referred to as in arrears, if that is the agreement with the client’s Advisor. Some
Third-party Advisors may prefer to deduct client fees directly and remit Asset Dedication’s fee.

Asset Dedication uses the ending value of each account on the last day of the previous quarter
to calculate the quarterly fee. Fees for the initial quarter are pro-rated based upon the number of days that
services are provided.

The client’s Advisor may charge investment management fees that are different from other
Advisors that use the services of Asset Dedication. Variations in Advisor compensation may be
due to the level of services the Advisor provides to the client. Such arrangements, and the terms and
conditions thereof, are determined between the client and their Advisor.

Payment of Fees
Asset Dedication is responsible for the calculation of its portion of the management fees it
charges. Management fees are paid via one of the following three ways:

1. In circumstances where Asset Dedication is charging fees directly to client accounts Asset
   Dedication charges the client’s account(s) for its management fees, and the payment is
   debited from the client’s account(s) by the custodian, and then sent to Asset Dedication by
   the custodian.
2. In circumstances where Asset Dedication is charging both its fees and those of the Advisor directly
   to client accounts Asset Dedication charges the client’s account(s) for its management fees, as
   well as the Advisor’s fees, and the payment is debited from the client’s account(s) by the
   custodian, and then sent to Asset Dedication by the custodian. Asset Dedication then sends
   the Advisor’s portion of the management fees to the Advisor.
3. In circumstances where the Advisor charges a management fee and the Advisor pays Asset Dedication
   for its services directly. Payments happen in the following ways:
    A. The client’s Advisor bills the client’s account(s) or invoices the client for its management

                                                                    Asset Dedication, LLC

        fees, as well as Asset Dedication’s fees. The Advisor then sends Asset Dedication’s
        portion of the management fees to Asset Dedication.
    B. Asset Dedication charges the account on behalf of the Advisor and deducts its fee before sending
       the remainder to the Advisor

Other Costs of Investing
    •   In addition to portion of the advisory fees retained by Asset Dedication, each client's Third -
        Party Advisor is paid its own advisory or other related fees;
    •   Clients with assets held in registered investment companies (mutual fund shares and exchange
        traded funds) have internal fees and expenses;
    •   In circumstances where clients are invested in mutual funds, trades are charged by their
        account custodian for transactions in their account(s). These charges may come in the
        form of commissions, mark-ups, and redemption fees. Clients may also be charged fees and
        expenses for certain types of accounts, such as IRA and other qualified retirement plan
        fees;
    •   Asset Dedication and the Advisor have limited choices of cash sweep products available
        at the primary custodians, Charles Schwab & Co. and Fidelity Institutional. Custodians for annuity
        products are similarly limited;
    •   Asset Dedication does not receive any portion of the brokerage commissions or transaction
        fees charged, or any of the fees assessed by the third parties listed above.

Item 7 – Types of Clients

Asset Dedication services the following types of clients:
   • Individuals
   • High net worth individuals
   • Trusts, Estates or Charitable Organizations
   • Small Institutions or corporations

In House Advisors may have minimum asset size requirements in order to service accounts.