RK Asset Management LLC

Item 5 Fees and Compensation
Portfolio Management Services
Our fee for portfolio management services is based on a percentage of your assets we manage and is
set forth in the following fee schedule:

Assets Under Management                 Annual Fee*
$100,000 to $500,000                       2.00%
$500,001 and over                         1.50%

*Clients with agreements prior to January 2014 may have different fee schedules. Our fees are subject
to negotiation at our sole discretion and may vary on a case by case basis.

Our annual portfolio management fee is billed and payable quarterly in advance based on the value of
your account on the last day of the previous quarter.

If the portfolio management agreement is executed at any time other than the first day of a calendar
quarter, our fees will apply on a pro rata basis, which means that the advisory fee is payable in
proportion to the number of days in the quarter for which you are a client. Our advisory fee is
negotiable, depending on individual client circumstances.

We will deduct our fee directly from your account through the qualified custodian holding your funds
and securities. We will deduct our advisory fee only when you have given our firm written authorization
permitting the fees to be paid directly from your account. Further, the qualified custodian will deliver an
account statement to you at least quarterly. These account statements will show all disbursements
from your account. You should review all statements for accuracy.

You may terminate the portfolio management agreement upon written notice to our firm. You will incur
a pro rata charge for services rendered prior to the termination of the portfolio management
agreement, which means you will incur advisory fees only in proportion to the number of days in the
quarter for which you are a client. If you have pre-paid advisory fees that we have not yet earned, you
will receive a prorated refund of those fees.

Sub-advisory Services
We have arrangements with Morgan Stanley ("MS") and Wells Fargo Advisors ("Wells Fargo") for sub-
advisory services. We receive a fee from MS and Wells Fargo computed on a monthly or quarterly
basis, paid in advance at an annual rate of 0.75% of all assets in the account(s).

Additional Fees and Expenses
You will incur transaction charges and/or brokerage fees when purchasing or selling securities. These
charges and fees are typically imposed by the broker-dealer or custodian through which your account
transactions are executed. We do not share in any portion of the brokerage fees/transaction charges
imposed by the broker-dealer or custodian. To fully understand the total cost you will incur, you should
review all the fees charged by our firm and the broker-dealer and/or the custodian for your account.
For information on our brokerage practices, please refer to the "Brokerage Practices" section of this
Disclosure Brochure.

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Item 7 Types of Clients
We provide investment advisory services to individuals, high net worth clients and state and municipal
government entities.

In general, we require a minimum of $100,000 to open and maintain an advisory account. At our
discretion, we may waive this minimum account size. For example, we may combine account values
for you and your minor children, joint accounts with your spouse, and other types of related accounts to
meet the stated minimum.