Delta Asset Management LLC

ITEM 5 ‐ FEES AND COMPENSATION

Delta is solely compensated for its ongoing investment advisory services by charging you a management
fee based on the market value of your assets under our management based upon the fee schedule set
forth below:

Market Value                                       Stock Rate           Bond Rate
First $ 2,000,000                                    1.00%                .50%
Over $ 2,000,000 to $ 5,000,000                       .70%                .35%
Over $ 5,000,000 to $10,000,000                       .50%                .25%
Over $10,000,000                                      .35%                .15%

For College Savings Plans, we charge .25% for assets under management.

For clients who want to maintain legacy positions in an account (for example, stocks from a previous
investment account), we will monitor them and charge .25% on the value of these positions.

Fees are billed quarterly in arrears based upon the market value of the assets at the end of the
preceding quarter. If your relationship with us began or ended during a calendar quarter, your fee will
be prorated for the appropriate number of days completed or remaining in the quarter and, where
applicable, you will be issued a refund for any portion of your quarterly fee paid in advance (such as in a
wrap fee arrangement) or which was otherwise unearned. Fees are rounded to the nearest dollar.

We may negotiate the amount of your fee depending upon circumstances including, but not limited
to, account composition and complexity, other client, employee or family relationships, etc. which
may result in different fees being charged by us for client accounts similar in composition and
objectives. Our employees and their family related accounts may be charged a reduced fee, or no fee,
for our services.

You may pay your fee to us directly upon receipt of an invoice from us or you may authorize your
custodian to allow us to directly debit our fee from your account or accounts. If you choose the
latter method, your custodian will not confirm our fee but will pay the amount based on the fee
amount communicated to the custodian by us. You will receive a periodic statement from your
custodian which will show the amount of the fee which has been sent to us. You should confirm the
accuracy of our fee calculation upon receipt of your custodian’s statement.

The fees you pay us do not include brokerage commissions or other fees or charges associated with
securities transactions implemented with or through a brokerage firm, mark‐ups or mark‐downs in
principal transactions, deferred sales charges, stock exchange fees, wire transfer or related processing
fees, transfer taxes or other charges mandated by law or regulation all of which will be charged to you in
addition to our fee. We do not receive any portion of any of the foregoing expenses or fees. You should
go to the section on Brokerage Practices in our brochure for more information on how we select or
recommend brokerage firms for your securities transactions and information related to that process.

You should understand that funds, including ETFs and mutual funds, in which your assets are invested by
us or by others, impose separate investment management fees and other operating expenses, described
in the fund’s prospectus, for which you, the client, will be charged separately from the fee paid to us for
our services.

As we discussed in the section on Advisory Services in our brochure, we have entered into “wrap fee”
arrangements with certain brokerage firms where you pay the brokerage firm an agreed upon fee for
investment management by us or other investment advisory firms such as us, brokerage commissions,
custodial services and possibly consulting services. We receive a portion of the “wrap fee” you pay the
brokerage firm for our services. Our portion of the fee averages .75% of your assets managed by us
depending upon our arrangement with the brokerage firm which sponsors the wrap fee arrangement.

Clients should be aware that similar or comparable services may be available from other firms including
other investment management firms at a cost higher or lower than that available through us.

ITEM 7 ‐ TYPES OF CLIENTS

Our clients include individual persons, banks or thrift institutions, pension and profit‐sharing plans,
trusts, estates, charitable organizations, corporations or similar business entities, and state or municipal
government entities. We do not have a minimum account size.