Hoisington Investment Management Co

Item 5 - Fees and Compensation

Fee Schedule

The firm charges advisory fees for discretionary account management based on a
percentage of the market value of the account’s assets at the end of each quarter. We
charge fees for new clients under the following fee schedule:

                                Adviser’s Fee Schedule

                             .45% on the first $10 million
                             .35% on the next $40 million
                             .25% on the next $50 million
                            .15% on the next $400 million
                         .05% on amounts above $500 million

The minimum quarterly fee is $5,625 and the minimum account size is $1 million.

Accounts valued below $5 million will be subject to the minimum quarterly fee which
means the annual fee rate will exceed 0.45%. Quarterly fees are calculated as ¼ of the

                                                        Hoisington Investment Management Co.
                                                           Part 2A of Form ADV: Firm Brochure

annual rate. Fees are prorated (using the actual number of days in the quarter) if we have
served as investment manager for less than the full calendar quarter and for any
contributions to or withdrawals from the account during the quarter. Fees are payable
by each client quarterly, in arrears, based upon the ending market value (“EMV”) of the
account, including cash and accrued interest, on the last business day of each calendar
quarter. For billing purposes, the value of the account is the value as reflected in our
performance measurement and investment accounting system. There is the possibility
that there will be differences between the account value on the client’s custodial
statement and the account value in our investment accounting system due to different
pricing services used and minor variances in accrued income calculations.

Although HIMCo has established the aforementioned fee schedule, we retain the
discretion to negotiate alternative fees on a limited client-by-client basis. Related
accounts may be combined in order to calculate the fee charged. Because we have a long
history with many of our clients, some clients have older fee schedules. Breakpoints for
tiers and fee rates have been revised over time. Existing clients pay the fee specified in
their advisory agreement. Some clients require us to use the custodial balance for billing.
Some clients remove accrued interest from quarter-end EMV and some clients require us
to use the actual number of days in the quarter to calculate the fee. Some clients require
us to calculate fees on the average of the month-end value for each month in the quarter,
therefore, adjustments are not made for cash flows. These differences mean that some
clients are paying different rates than others and are receiving the same level of service.
We do not differentiate the service we provide based on the fee schedule.

The fee that we receive for serving as the sub-adviser to the Wasatch-Hoisington U.S.
Treasury Fund is currently equal to 0.25% of the Fund’s average daily net assets, less one-
half of the quarterly shareholder servicing fees.

Sub-adviser fees for the private fund are according to our fee schedule at the time the
fund became a client.

Payment of Fees

Accounts are billed each calendar quarter in arrears. Payment is requested within 30 days
of receipt of the invoice. Payment may be made by check, wire transfer or ACH electronic
funds transfer.

Typically, we bill clients directly for fees incurred. However, some clients have requested
that we instruct the custodian to deduct funds from their account to pay our fees. If
directed by the client, we will upload our invoice to the account custodian. On at least a
quarterly basis, the custodian is required to send to the client a statement showing all
transactions within the account during the reporting period including the deduction of
our management fee. Clients should contact us directly if they believe that there may be

                                                        Hoisington Investment Management Co.
                                                           Part 2A of Form ADV: Firm Brochure

an error in their fee calculation.

The fee we receive as the sub-adviser to the Wasatch-Hoisington U.S. Treasury Fund is
paid monthly, in arrears, pursuant to the Sub-Advisory Agreement with Wasatch Advisors,
LP.

Other Fees & Expenses

In addition to our advisory fees, clients often incur certain charges imposed by third
parties, such as custodians, banks, or other financial institutions. We do not receive any
of these fees, either directly or indirectly. These additional fees include, among other
things:
        • Mark-ups and mark-downs (e.g., dealer spreads)
        • Custodial fees
        • Wire transfer and electronic fund processing fees

In addition, clients direct their custodian to invest cash in a sweep or other interest-
bearing account such as a money market fund, which may be managed by an affiliated
company of the custodian. These short-term investments of cash may incur management
and distribution expenses payable to the custodian or its affiliates. Money market funds’
fees and costs are described in the relevant money market fund prospectus and will not
be deducted from the fee that clients pay to us for advisory services.

Due to the fact that we trade exclusively in U.S. Treasurys, there are no brokerage
commissions incurred when trades are executed.

Mutual Fund Fees - The net fee expense ratio of the Wasatch-Hoisington U.S. Treasury
Fund is 0.73%.

Prepaid Fees

We do not collect any prepaid fees. Clients are invoiced quarterly, in arrears.

Item 7 - Types of Clients
We provide advisory services to the following types of clients:

   •   Pension and profit-sharing plans (both public and private, including ERISA plans)
   •   Charitable organizations
   •   Insurance companies
   •   Investment companies (sub-advisory)
   •   Pooled investment vehicles (other than investment companies) (sub-advisory)
   •   Corporations or other businesses

The minimum amount necessary to enter into an agreement for portfolio advisory
services is $1 million and the minimum quarterly fee is $5,625.

The minimum initial investment to open an account for the Wasatch-Hoisington U.S.
Treasury Fund is $2,000.