North Star Asset Management Inc

Fees & Compensation

Description:
NSAM bases its fees on a percentage of assets under management. Fees are not based on the level of capital
gains or capital appreciation. Fees may be subject to negotiation based on account size, relationships,
security holdings, and other factors.

Fee Billing:
Investment advisory services are provided under a written advisory agreement between NSAM and its
clients. Management fees are charged at an annual rate of .60% of the market value of assets under
management at the end of each quarter. Our fees are generally subject to an annual minimum of $6,000.

You have the option of having your management fees deducted directly from your managed account/s or you
may pay fees directly to NSAM upon being invoiced.

Other Fees:
If your portfolio includes holdings of mutual funds or exchange traded funds (ETF’s), you may be charged a
fee by the fund company in addition to the management fee charged by NSAM. However, we generally invest
in low-cost funds with no front-end sales charges.

You may also incur charges such as brokerage, custodial, and other transaction fees. We will allocate
transactions to firms based on our evaluation of its execution ability, level of commission rates and the
quality of research services provided. Should you direct us to use a specific brokerage, it may eliminate our
ability to negotiate a lower commission. See Directed Brokerage – Page 13

Prepayment/Termination:
NSAM does not require prepayment of management fees. However, if requested, we will accept payment in
advance. Prepaid fees will be reimbursed on a pro-rata basis should services be discontinued.

NSAM reserves the right to terminate any investment management agreement where a client has willfully
concealed or has refused to provide pertinent information about financial situations when necessary and
appropriate. You may terminate our agreement at any time by providing written notice.

Compensation for Sales of Investment Products:
NSAM‘s compensation is solely from fees paid by clients. We do not receive commissions based on purchases
of any financial products, including insurance. No commissions, in any form, are accepted.

Performance-Based Fees & Side-by-Side Management

Not Applicable

Types of Clients

NSAM generally provides investment advice to:
   • Individuals
   • Banks
   • Trust and investment companies
   • Corporate plan sponsors of pension and profit-sharing plans
   • Trusts, estates, and charitable organizations
   • Endowments and foundations
   • Corporations or business entities other than those listed above

Methods of Analysis, Investment Strategies & Risk of Loss