Cypress Capital Group Inc

Item 5 Fees and Compensation
Fees for investment management services are charged monthly in arrears (i.e., after services are
rendered) determined by the market value of assets under management in the account at the end of
each month and prorated based on the actual number of days. These fees may be negotiable. The
annualized fee is as follows:

For Accounts holding a customized portfolio of both equities and fixed income securities or all
                                         equities:

                                    1.20% on the first $3,000,000
                                  0.85 of 1% on the next $2,000,000
                                  0.65 of 1% on the next $5,000,000
                                     0.55 of 1% over $10,000,000

                                There is a $8,500 minimum annual fee

                       For Accounts holding 100% fixed income securities:

                                 0.35 of 1% on the first $20,000,000
                                 0.30 of 1% on the next $30,000,000
                                    0.25 of 1% over $50,000,000

                                There is a $8,500 minimum annual fee

Management Fee: Upon the opening of your CCG account, a pro-rated fee will be taken from the day
we are operationally capable of trading in your account until the end of the current month. Fees will
then be charged in arrears (i.e., after services are rendered) for each successive month your account
remains open based upon the prior month-end market value. Adjustments may be made to the month-
end market value for additions or withdrawals during the fee period.

Termination Fee: There are no percentage termination fees. A pro-rated fee will be taken from the
first day of the month until the date of receipt of notification. Direct expenses and a charge for time and
effort to close the account may be assessed.

Additional Fees: Trading costs are in addition to the above-stated fees. These costs are a direct
pass through from the broker-dealer and not marked up by CCG.

The balances in short-term funds including, but not limited to money market mutual funds, and cash
are subject to CCG's investment management fee. Also, the Sponsors of mutual funds may take fund
level management fees. As with most all mutual funds, fund level fees are indirect fees taken before
income is distributed to the holders of the mutual fund. CCG may receive, directly from the fund
sponsors, compensation for services.

When unusual or extraordinary services are requested or required, fees may be charged in
accordance with the responsibilities assumed and duties performed. Such services may include, but
are not limited to, the furnishing of a special or an excessive number of reports, the maintenance of
special records or the performance of special duties requiring an unusual amount of time and effort.

Change In Fee Schedule: CCG reserves the right to amend this fee schedule with thirty (30) days
advance written notice.

Item 7 Types of Clients
Cypress Capital Group provides investment advice to various types of clients.

Cypress Capital Group's advisory clients, may include:
   • Individuals;
   • High Net Worth Individuals;
   • Individual Retirement Accounts:
   • Pension and profit-sharing plans;
   • Trusts and estates;
   • Charitable and educational institutions;
   • Corporations and other business entities; and
   • Financial intermediaries.

Cypress Capital Group does not impose a minimum account size for opening or maintaining an
account. There may be minimum fees as a condition of managing an account. The minimum fees for
the different types of investments are discussed in the section on "Fees and Compensation".