Smith Asset Management Co LLC

Item 5 Fees and Compensation
Portfolio Management Services
Our annual fee for portfolio management services is one percent (1%) of your assets under our
management. We require a minimum account size of $100,000, unless waived at our discretion. The
annual portfolio management fee is billed and payable monthly in arrears based on the market value of
your account as reported on the monthly statement issued by the custodian.

If the portfolio management agreement is executed at any time other than the first day of a calendar
month, 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 month for which you are a client. Our advisory fee may differ
from client to client and is negotiable depending on individual client circumstances which may include
long-term client status, multiple accounts, or a high level of assets placed under our management.
 Any concession on the standard one percent (1%) annual portfolio management fee must be noted in
writing on the portfolio management agreement.

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 month for which you are a client.

We encourage you to reconcile our invoices with the statement(s) you receive from the qualified
custodian. If you find any inconsistent information between our invoice and the statement(s) you
receive from the qualified custodian please call our main office number located on the cover page of
this brochure.

Advisory Consulting Services
We charge an hourly fee of $250 for advisory consulting services, which is negotiable, depending on
the scope and complexity of your special circumstances and the work to be performed. An estimate of
the total time/cost will be determined at the start of the advisory relationship. In limited circumstances,
the cost/time could potentially exceed the initial estimate. In such cases, we will notify you and request
that you approve the additional fee. Our consulting fee is payable upon completion of the agreed upon
consulting services.

Additional Fees and Expenses
As part of our investment advisory services to you, we may invest, or recommend that you invest, in
mutual funds and exchange traded funds. The fees that you pay to our firm for investment advisory
services are separate and distinct from the fees and expenses charged by mutual funds or exchange
traded funds (described in each fund's prospectus) to their shareholders. These fees will generally
include a management fee and other fund expenses. You will also 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 whom 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
mutual funds, exchange traded funds, our firm, and others. For information on our brokerage
practices, refer to the Brokerage Practices section of this brochure.

Compensation for the Sale of Securities or Other Investment Products
We do not receive compensation for the sale of securities or other investment products.

Item 7 Types of Clients
We offer investment advisory services to individuals including high net worth individuals, pension and
profit sharing plans, trusts, estates, charitable organizations, corporations, and other business 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 waive the minimum if you
appear to have significant potential for increasing your assets under our management. We may also
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.