H S Dreher Capital Management LLC

Item 5: Fees and Compensation

Fees for Investment Management are a percentage of the market value of the assets under
management by the firm, subject to the following annual fee schedule:

I. – Investment Management Fee Schedule

$0 - $1,000,000……………...0.80%
$1,000,000 and up...................0.50%

(0.25% annually for “held-away” accounts)

Our minimum annual fee is $4,800 ($1200 per quarter). The minimum fee may be reduced
or waived in our sole discretion for clients referred to us by an existing client, or for other
reasons.

II. – Employer Sponsored Retirement Plan Fee Schedule - Participant Directed 401(k) Profit
Sharing Plans

$1,000,000 - $3,000,000 ........0.40%
$3,000,000 - $6,000,000 ........0.20%
$6,000,000 and up ..................0.10%

Our minimum annual fee is $5000.

In addition to our fees, most plan providers will also have fees for recordkeeping and
reporting. Our fees do not include the costs associated with a Third-Party Administrator
(TPA).

III. – Non-Profit Organizations – Endowments Fee Schedule

$0 - $500,000 ........................0.80%
$500,000 and up ....................0.50%

Our minimum annual fee is $2500.

Payment of Fees

Investment Management fees for the initial quarter shall be calculated on a pro-rata basis
commencing on the day the assets are available for our management. Subsequent fees are
paid quarterly, in arrears, based upon the market value of the assets on the last day of the
previous quarter as valued by the custodian. Fees are invoiced and deducted from client
accounts or remitted directly by the client, depending on client preference.

Additional Fees Charged

Fees paid to the firm are separate and distinct from fees and expenses charged by third-party
providers. Based on the firm’s fee structure, clients pay their own commissions. And to the
extent the firm purchases mutual funds for clients, they will pay investment management
fees in addition to the fees charged by the firm.

Prepayment of Fees

The firm does not accept prepayment of fees. All fees are billed in arrears after services are
performed.

Refund of Fees and Account Termination

The firm bills in arrears. In the event of termination of services, the firm will bill its clients
on a pro-rata basis for services it has already performed.

Clients have the right to terminate their Investment Management Agreement without penalty
or fee within five (5) business days after entering into the agreement.

External Compensation for The Sale of Securities to Clients

The firm does not sell securities. It is compensated only by investment management fees
paid to it by its clients.

Item 7: Types of Clients

The firm manages investment accounts in many forms:

       Individual and Joint Accounts
       Trust Accounts
       IRAs
       Other Retirement Accounts
       Corporations and Business Entities

The firm does not require a minimum account size to establish and maintain its services.
However, the firm’s minimum investment management fees may apply.