Diamant Asset Management Inc

Item 5 – Fees and Compensation

The specific manner in which fees are charged by Investment Manager is established in a client’s
written agreement with Investment Manager. Fees are billed on a quarterly basis in arrears. Advisory
fees will not be prorated for each capital contribution and withdrawal made during the applicable

Applicant: Diamant Asset Management, Inc.                                    Form ADV Part II Page 5
SEC File Number: 801-28801

calendar quarter. The amount of the portfolio management fee is negotiable. Accounts initiated or
terminated during a quarterly period will be charged a prorated fee. Upon termination of any account,
any earned, unpaid fees will be due and payable. Advisory fees will be determined as of the close of
business on the date at the end of each calendar quarter and will be charged within a two week period
following the end of the quarter. Low balance clients paying the minimum fee may end up with high
effective fee rates and lower cost alternatives may be available. Advisory fees will be allocated
proportionally between the accounts based on portfolio valuations. Management of the account will
commence upon receipt of assets into the account. Clients authorize Investment Manager to directly
debit fees from client accounts.

The annual fee schedule is based on a percentage of the market value and type of assets placed under
management. Fees are calculated by separating the equity and fixed income bond segments of the
overall portfolio. The Equities fee schedule is applied to the equities segment of the overall portfolio,
and the Fixed Income Bonds fee schedule is applied to the fixed income bond segment of the overall
portfolio. Cash equivalents are categorized as part of the fixed income bond portfolio.

The total advisory fee charged is the combination of the two segments. The total advisory fee as a
percentage of assets will be lower with the inclusion of a fixed income bond segment versus all assets
being held in the equity segment.

Equities fee schedule:

               Market Value of Portfolio                        Annual Fee Rate
                   $ 0 to $1,000,000                                  1.50%
               $1,000,001 to $2,500,000                               1.25%
               $2,500,001 to $5,000,000                               1.00%
                More than $5,000,000                                  0.75%

Fixed Income Bonds fee schedule:

               Market Value of Portfolio                        Annual Fee Rate
                   $ 0 to $1,000,000                                  0.75%
               $1,000,001 to $10,000,000                              0.50%
                More than $10,000,000                                 0.375%

Minimum quarterly fee of $2,000.00

Investment Manager’s fees are exclusive of brokerage commissions, transaction fees, and other related
costs and expenses which shall be incurred by the client. Clients may incur certain charges imposed by
custodians, brokers, and other third parties, such as custodial fees, transfer charges, wire transfer fees,
and other similar fees and charges on brokerage accounts and securities transactions. Mutual funds and

Applicant: Diamant Asset Management, Inc.                                   Form ADV Part II Page 6
SEC File Number: 801-28801

exchange traded funds also charge internal management fees, which are disclosed in a fund’s
prospectus.

Such charges, fees and commissions are exclusive of and in addition to Investment Manager’s fee, and
Investment Manager shall not receive any portion of these commissions, fees, and costs.

Item 12 further describes the factors that Investment Manager considers in selecting or recommending
a broker-dealer for client transactions and determining the reasonableness of their compensation.

Generally, the Firm does not household accounts for adult family members; however, in the
circumstance that adult family members request their accounts to be held together in a household the
aggregated investment advisory fee is charged for all of the accounts in the household. In the case
where a parent opens an account and then adds his or her minor children to the account relationship, a
quarterly report will reflect all of the parent’s accounts and include the children’s accounts.

Item 7 – Types of Clients

Investment Manager provides portfolio management services to individuals, high net worth individuals,
individual retirement plans, corporate pension and profit-sharing plans, trusts, estates, and foundations.

We typically provide investment advice and management to high net worth individuals and families.
Therefore, our focus is on the investment issues relating to individual accounts.