Connective Portfolio Management LLC

Item 5: Fees and Compensation

Connective's basic fee schedule (based upon an annual percentage of the total market value of the
portfolio) is as follows:

Discretionary Accounts:

 Global Equity/Global Balance/Total Return
 First $5 million                                       1.50%
 Next $2 million                                        1.25%
 Next $3 million                                        1.00%
 Next $10 million                                       0.75%
 Above $20 million                                      Negotiable
 Fixed Income Portfolio:
 First $5 million                                       1.25%
 Next $2 million                                        1.00%
 Next $3 million                                        0.75%
 Next $10 million                                       0.50%
 Above $20 million                                      Negotiable

Advisory Accounts:

 Equity /Balanced Portfolio:
 First $5 million                                   2.00%
 Next $2 million                                    1.75%
 Next $3 million                                    1.50%
 Next $10 million                                   1.25%
 Above $20 million                                  1.00%
 Fixed Income Portfolio:
 First $5 million                                   1.50%
 Next $2 million                                    1.25%
 Next $3 million                                    1.00%
 Next $10 million                                   0.75%
 Above $20 million                                  0.25%

This is a blended fee schedule meaning different asset levels are assessed different fees, as shown

above. The fees paid by a client are negotiable and may vary from the schedule above due to
particular circumstances of the client or its portfolio and, as a result, one client may pay a higher fee
to Connective than another client for which Connective provides similar services. The actual fee
paid by each client will be set forth in the advisory agreement between Connective and the client.
Fees paid by the client to Connective may be higher or lower than the cost of similar services offered
through other financial firms. The fees charged to the client will not be affected by the number of
transactions executed on that client's behalf.

Fees are billed quarterly in arrears based on the market value of the clients' assets on the last day of
that quarter or via an agreed upon flat fee. Fees will be prorated for any beginning or ending period
of an advisory agreement that is less than a full billing period. Likewise, fees will be prorated to the
extent a client invests additional assets with Connective or withdraws a portion of its assets from
Connective's management during a quarter. Connective may deduct its advisory fees from clients'
assets or bill clients for fees incurred. A client may select either method, which will be reflected in
the client's advisory agreement.

Connective's services will be terminable by Connective or the client generally upon 7 days' written
notice to the other party. If an advisory agreement is terminated, advisory fees payable to Connective
during the relevant period under the agreement will be prorated to the date of termination and any
accrued portion of unpaid fees will be paid promptly by the client to Connective. Connective does
not require any client to pay advisory fees prior to entering into an advisory agreement with
Connective, nor does Connective require any client to pay any fees due under an advisory agreement
in advance.

Connective uses one or more independent third-party custodians to provide custodial services in
connection with the management of client assets. Please see Item 15 for additional information about
custody of client assets. The cost of these services is not included in the advisory fees described
above. Clients are responsible for paying any such additional costs charged by the custodial services
providers. The advisory fees charged by Connective also do not include the amount of any costs,
expenses or commissions that a broker or dealer may charge in connection with transactions executed
on behalf of client accounts. In addition, a custodian or registered broker may impose certain costs
or charges associated with servicing client accounts, such as margin interest, costs relating to
exchanging foreign currencies, odd lot differentials, regulatory fees, transfer taxes, exchange fees,
wire transfer or postage fees, foreign clearing, settlement and custodial fees, and other fees or taxes
required by law. Clients also will be responsible for expenses, including commissions and/or sales
loads, management fees and distribution/servicing fees, to the extent a client's assets are invested in
investment companies, including funds registered under the Investment Company Act of 1940, as
amended (the "1940 Act"), or are otherwise exempt therefrom, which have their own fee and expense
structures. Neither Connective nor any of its supervised persons receive any compensation from
these fees. All of these fees are in addition to the management fee you pay to Connective. For more
details on the brokerage practices, see Item 12 of this brochure.