Round Hill Asset Management Inc

Item 5. Fees and Compensation

   A. Our advisory fees range from 1.50% of assets per annum for “equity” accounts to
      0.75% of assets per annum for certain “balanced” accounts. An alternative
      advisory fee schedule offered only to qualified clients is based on account
      performance. Qualified clients who choose this fee schedule pay a lower flat fee
      quarterly, and pay an additional fee each year which is based on the performance
      of their account(s). Advisory fees are not negotiable.

   B. Advisory fees are billed quarterly near the beginning of each calendar quarter, and
      are deducted from each client’s account. A few clients ask to make alternative
      payment arrangements, which we generally attempt to accommodate.

   C. We do not charge any other fees to clients, although clients may incur fees
      charged by custodians, brokerage firms, and money market funds. Clients will
      incur brokerage and other transactions costs. Our brokerage arrangements are
      discussed more fully in Item 12. We do not invest in mutual funds for our clients,
      other than money market funds.

   D. Advisory fees are charged quarterly at the beginning of each calendar quarter. If
      an advisory contract is terminated, the quarterly fee is prorated over the portion of
      the calendar quarter for which the contract was in effect.

   E. Neither our firm nor any supervised person receives compensation for the sale of
      securities or other investment products, including asset-based sales charges or
      service fees from the sale of mutual funds.

Item 7. Types of Clients

   We have a variety of clients, including individuals, trusts, pension plans, and a private
   fund. We do not have a fixed minimum account size, but we prefer accounts larger
   than $100,000.