Drystone LLC

Item 5   Fees and Compensation

 Drystone's sole compensation is investment management/advisory or consultation fees
 calculated as a percentage of the assets under management.

 Fees are debited quarterly from custodian account pursuant to language included in the
 Drystone Investment Management Agreement, or contract, signed by client and by an officer
 of Drystone and pursuant to a standing fee debit authorization included in the separate broker-
 custodian account application completed and signed by client. Drystone mails client a fee
 calculation spreadsheet (invoice) showing the detailed calculation and amount of fees at least
 5 business days prior to debit from Custodian account and includes a cover note encouraging
 the client to raise any questions prior to debit. Drystone debits all fees from custodian
 accounts and does not offer clients the choice of paying separately via check.

 Drystone breaks its investment management fees down into two categories: Portfolio
 Counseling fee and Concentrated Investments fee. Please refer to Items 4 and 8 for more
 detail on Drystone's definition of Portfolio Counseling and Concentrated Investments. The fee
 calculation spreadsheet provided to client distinguishes between Portfolio Counseling and
 Concentrated Investments by showing the value of both the client's Total Portfolio and the
 Concentrated Investments sub-set and fee amounts calculated as follows.

 The Investment Management Fees schedule for all new clients who had not executed a
 Drystone Investment Management Agreement prior to 7/1/2011 is:

 Portfolio Counseling Fee – applies to each Client’s entire portfolio under management
 0.70 % per year on the first $ 5 million in Total Portfolio assets under management
 0.50 % per year on the next $ 20 million in Total Portfolio assets under management
 0.30 % per year on the balance over $ 25 million in Total Portfolio assets under management

 Additional Concentrated Investments Fee
 – applies only to the Concentrated Investments portion of each Client’s portfolio
 0.45 % per year on first $ 5 million in Portfolio assets designated as Concentrated Investments
 0.30 % per year on next $ 20 million in Portfolio assets designated as Concentrated Investments
 0.15 % per year on balance over $ 25 million in Portfolio assets designated as Concentrated
 Investments

 Fee Cap: total Fees will not exceed a rate of 0.25% per quarter (i.e., annualized 1% per year)
 – applies to the total amount of Portfolio Counseling Fee plus Concentrated Investments Fee
 If the total Fees rate (i.e., total Fees amount ÷ Total Portfolio assets under management) for
 any quarterly billing date as calculated according to the above schedules exceeds 0.25% of the
 Total Portfolio value on that billing date (equivalent to an annualized rate of 1% per year),
 Manager will not invoice Client for the calculated total Fees amount but will instead reduce the
 total Fees amount invoiced for that quarterly billing period to an amount that equals 0.25% of
 the Total Portfolio value on that billing date (equivalent to an annualized rate of 1% per year).

Hypothetical examples of potential annualized Fees rate: If a Portfolio were valued at $1 million
including $335,000 in Concentrated Investments through each of four quarterly billing dates in
a given year, the total Fees charged for that year would add up to a rate of 0.70% x $1,000,000
+ 0.45% x $335,000 = $8,508 or 0.85%. If a Portfolio were valued at $1 million including
$665,000 in Concentrated Investments, the total Fees would add up to 0.70% x $1,000,000 +
0.45% x $665,000 = $9,993 or 1.00%. If a Portfolio were valued at $1 million all in Concentrated
Investments, total Fees for that year would be limited to (a.k.a. capped at) $10,000 or 1.00%.

These two fees are not mutually exclusive, i.e., each Drystone client pays the Portfolio
Counseling Fee on the value of his/her entire Total Portfolio and also pays the Concentrated
Investments Fee on the value of that portion, or sub-set, of his/her portfolio designated as
Concentrated Investments.

For all clients who first executed an Investment Management Agreement with Drystone prior
to 7/1/2011, the Portfolio Counseling + Concentrated Investments fee schedule contains % fee
rates and assets under management breakpoints different from those in the schedule above.
Drystone does not offer the pre-7/1/2011 schedule to any new client who had not executed a
Drystone Investment Management Agreement prior to 7/1/2011.

For the single account mentioned in Item 4 to which Drystone is providing non-management
consultation services, the consultation fee schedule contains % fee rates different from those
in the schedule above. As indicated in Item 4, Drystone does not offer consultation services or
the consultation fee schedule to any other client.

Fees are not negotiable. There are no Drystone fee schedules or arrangements other than
those noted above, and Drystone offers no discounts nor exceptions to any client.

Drystone does not apply a minimum dollar amount fee.

Drystone debits its quarterly fees midway through each calendar quarter of service based on
portfolio values at the end of the prior calendar quarter. Therefore, the portion of the fee
attributable to the second half of each calendar quarter of service is billed in advance of service
provided. If a client terminated during the latter part of a calendar quarter (i.e., after that
quarter's fee had already been debited), Drystone would issue a check payable to client for the

prorated refund amount calculated as follows: refund = original quarterly fee debit amount x
(remaining days from termination date to quarter-end divided by total days in quarter).

Drystone's only compensation is the investment management or consultation fees described
above. Other costs not payable to Drystone but which clients may incur are: brokerage
commissions charged by the broker-custodian executing trade orders entered by Drystone,
...

Item 7     Types of Clients

 Drystone currently manages portfolios for taxable individuals, various types of trusts, IRA's, a
 charitable family foundation, a client's non-operating limited partnership and LLC investment
 accounts established for family estate planning purposes.

 Drystone's founder and manager has in the past also managed portfolios for taxable corporate
 accounts, endowments, and corporate retirement plans and believes that Drystone's services
 would be appropriate to those and other types of client portfolios.

 Drystone does not require a minimum portfolio size to open or maintain a portfolio, and
 Drystone has specific procedures in its Compliance Policy/Code of Ethics to ensure that smaller
 client portfolios receive fair and equitable treatment consistent with the treatment which
 larger portfolios receive, e.g., in the execution prices paid and received for securities purchases
 and sales.