Ipswich Investment Management Company Inc

Item 5: Fees and Compensation
IIM maintains the following general fee schedule per annum for providing investment advisory
services, subject to negotiation and agreement with clients. Clients have the option to purchase
investment products that we recommend through other brokers or agents that are not affiliated with
IIM.

All managed assets; including equities, convertible securities, cash equivalents, cash reserved for
equities, and fixed income securities are charged:

     •   1% annually
     •   Accounts over $2,000,000 in value are subject to fee negotiation.

IIM does not charge an advisory fee on margin balances.

In certain circumstances involving family-related accounts and tax-exempt accounts, IIM may
negotiate a portion of the fee. Fixed fees may be available for certain services in certain situations
agreed upon by IIM and clients.

In certain circumstances, IIM allows for the combining of related accounts for fee-paying purposes.
Combining accounts generally provides clients with a lower fee but carry the risk that if a client
liquidates a large account in the group, the fees for the remaining accounts could be higher on a
percentage basis.

Fees are billed and payable quarterly in arrears on the value of the portfolio at the end of the quarter.
Billing for accounts under management for less than a quarter will be determined on a pro rata basis.
Investment advisors have the discretion to waive or reduce management fees. For the majority of our
clients, we deduct fees directly from their accounts.

Clients receive a Fee Agreement document, which details the specific manner in which IIM charges
advisory fees.

The client or IIM may cancel the Investment Advisory contract at any time. Fees will be pro-rated
to the termination date.

IIM’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses. Clients may incur certain charges imposed by custodians, brokers, or other third parties
which may include fees charged by managers, custodial fees, deferred sales charges, odd-lot
differentials, transfer taxes, wire transfer, electronic fund fees, and other fees and taxes on brokerage
accounts and securities transactions. Mutual funds and exchange-traded funds also charge internal
management fees, disclosed in a fund’s prospectus and may offer different classes of shares with
different fee structures.

Such charges, fees, and commissions are exclusive of, and in addition to, IIM’s fee.

Item 7: Types of Clients
Our clients include individuals, families, trusts, endowments, corporations, pension plans, profit
sharing plans, and others with diverse investment objectives.