Mount Vernon Associates Inc

Item 5- Fees and Compensation

The specific manner in which Mount Vernon Associates, Inc. charges fees is established in a client's
written agreement. Compensation is based on a percentage of the assets under management in each
account. Fees are computed based on the market value of the assets in each client's account on the
last trading day of the preceding quarter and prorated for any portion thereof. The fees are stated as
annual percentages but are charged and payable quarterly in advance unless other arrangements are
negotiated. Under certain circumstances, our fees are negotiable. The minimum fee for balanced and
equity accounts is $4,500, which may be waived. The minimum fee for fixed-income accounts is
$15,000, which may be waived. Clients may elect to be billed directly for fees or to authorize Mount
Vernon Associates, Inc. to directly debit fees from client accounts. Management fees shall not be
prorated for each capital contribution and withdrawal made during the applicable calendar quarter.
Upon termination of any account, any prepaid, unearned fees will be promptly refunded. Any earned,
unpaid fees will be due and payable based on the most recent quarter-end, calculated daily, upon
proper notification of termination.

BASIC FEE SCHEDULE
.90% on the first       $ 1,000,000
.75% on the next        $ 1,000,000
.55% on the next        $ 5,000,000
.40% on the next        $ 5,000,000
.30% on the next        $45,000,000
.20% on the remainder

FIXED INCOME SCHEDULE
.50 of 1% on the first $10,000,000
.40 of 1 % on the next $40,000,000
.30 of 1 % on the remainder

Advisory fees charged by Mount Vernon Associates, Inc. are distinct and separate from the fees and
expenses charged by exchange-traded funds and mutual funds, which may be used within client
accounts for additional diversification. A description of these fees is available in each fund's
prospectus. Additionally, fees charged by Mount Vernon Associates, Inc. do not include custodial fees
and transaction costs paid to custodians, brokers, or third parties involved in holding funds or
completing trades on the client's behalf. Clients should review all fees charged by Mount Vernon
Associates, Inc. (as disclosed in our ADV and our client contract), custodians, brokers, and other
parties to fully understand the total fees incurred. Additionally, Mount Vernon Associates, Inc. does
not receive any portion of those fees incurred in custodial or brokerage relationships, nor does it
receive any portion of fees from exchange-traded funds or mutual funds used by clients or included in

client portfolios. For any service rendered beyond those stated above, the client will be charged on a
time and material basis.

Item 7- Types of Clients

Mount Vernon Associates, Inc. provides portfolio management services to individuals, high-net-worth
individuals, corporate pension and profit-sharing plans, Taft-Hartley plans, charitable institutions,
foundations, endowments, trust programs, and other U.S. institutions.