Somerset Group LLC

Item 5: Fees and Compensation

SG charges clients based on a percentage of Assets Under Management (“AUM”).
      Less than $1 Million AUM: 1.50% annually
      $1 Million - $5 Million AUM: 1.00% annually
      More than $5 Million AUM: 0.75% annually
      Minimum annual fee: $150

General Information on Fees

Typically, under the terms of SG’s standard form investment advisory agreements, the
compensation of SG’s service is payable monthly in arrears. Unless the client directs SG
otherwise in writing, the client authorizes the custodian of the account to pay the fees due
directly from the custody account. The standard form agreements do not have fixed termination
or renewal dates but provide for the termination of SG’s services to the client upon prior written
notice by either the client or SG to the other.

In addition to the schedules of fees set forth above that apply to new clients; there are in effect
fee schedules with some clients that differ from those above. From time to time, special
requirements of clients may result in advisory contracts with terms or fee arrangements differing
from those set forth in SG’s standard forms. There are circumstances under which fees may be
negotiated. The minimum fees noted above may be waived or reduced when, for example, a new
account is expected to grow rapidly in size, a relationship exists with a present client of SG, or
for other reasons, at the discretion of SG.

While the fees and payment terms indicated are standard, fees and payment terms may be
negotiated.

A discount from the standard fee may be offered to accounts of persons associated with SG or
ADV Part 2A – Brochure                       1                                    Somerset Group, LLC

members of their family.

SG clients will pay fees to third parties, such as custodial fees or mutual fund fees, and will incur
brokerage charges in connection with the execution of portfolio transactions. See Brokerage
Practices for more information.

Item 7: Types of Clients & Account Requirements

SG has the following types of clients:
   • Individuals
   • Trusts, estates, or charitable organizations
   • Corporations

SG has no account minimums or requirements for maintaining accounts with us.