Cypress Asset Management Inc

Item – 5 - Fees and Compensation
Description

    Our compensation for our individually managed accounts is based on the amount of assets
    under management. Most of our advisory fees are billed and payable quarterly in arrears
    (we are paid for the work done in the last 90 days) based upon the market value of the
    assets in the account at the end of the quarter. If the account utilizes margin, which is
    usually at the client’s request, then the fee payable to CAM will be based on the market
    value of investments in the account. The internal records we use for billing may contain
    a different market value than the statement received from the respective custodian, but we
    believe these differences, if any, are immaterial. However, some of our advisory fees
    (clients related to one custodian) are billed and payable in advance based on the market
    value of assets under management at the end of the previous quarter. When a client related
    to that one custodian (that pays in advance) terminates a relationship with Cypress, fees
    collected in advance are promptly reimbursed by the custodian to the client. Fees
    reimbursed by the custodian and due back to the custodian from Cypress are settled in the
    following billing cycle. Payment in full is expected upon invoice presentation.
    We may either bill clients for fees incurred or deduct fees from clients’ assets, according
    to the desires of the client. Clients may select either method of payment. The client
    must consent in advance to direct debiting of their investment account.
    The annual equity fee schedule is listed below:

              •   1.25% on the first $2 million
              •   .70% on the next $3 million (from 2,000,001 to 5,000,000)
              •   .5% on the next $5 million (from 5,000,001 to 10,000,000)
              •   .40% on assets above $10,000,000
    The annual fee for the management of fixed income is listed below:
              •   .40% on the first $2 million
            • .25% on all assets over $2 million
    In addition, if equities under management exceed $2 million, the annual fee on all fixed
    income securities is .25%.
    There is no minimum fee and all fees are negotiable. Cypress, in its sole discretion, may
    charge a lesser investment advisory fee.
    Cypress clients’ assets are always housed with a third-party custodian, whom the client
    selects. Clients should anticipate that they will pay the custodian a fee for their services.
    Cypress does not have input into the fees charged by a custodian.
    Some of the investments that Cypress chooses (for example Exchange Traded Funds,
    Closed End Funds, Mutual Funds) have a fee that is in addition to the fee charged by
    Cypress. Cypress does not have any say over the fees charged by Exchange Traded Funds,
    Closed End Funds or Mutual Funds.

Cypress clients will pay a separate brokerage fee generated by purchases and sales of securities on
their behalf by a brokerage firm. The brokerage commissions a client pays will vary, depending on
the brokerage firm and/or custodian they choose or is chosen by CAM. Please refer to Item 12 for
more information on Brokerage Practices.

Cypress reserves the right to stop work on any account that is more than 60 days past due. Cypress
reserves the right to bill terminated accounts a fee equal to 90 days of fees of assets under
management as of the date of termination. The fee covers work performed by Cypress on behalf of
the former client after the date of termination.

Item 7 - Types of Clients

Description

   Cypress provides advisory services to individuals, families and their related IRA
   accounts, endowments and trusts and business entities. In addition, we are a third-party
   manager to other brokerage companies, custodians and trust companies.
   Cypress has a stated account minimum size of $500,000 in assets under management,
   which equates to an annual fee of $6,250.
   Cypress has the sole discretion to waive the account minimum.