SRB Corporation

Item 5 – Fees and Compensation

A. SRB’s Fee Schedule is as follows:
      If the client’s portfolio is invested only in fixed-income securities, the annual fee will be 0.35%,
       calculated and paid quarterly in arrears, on the basis of the total value of the client’s portfolio as of
       the last business day of the immediately preceding calendar quarter.

      If no more than 25% of the client’s portfolio is invested in equities and/or real estate, the annual
       fee will be 0.50%, calculated and paid quarterly in arrears, on the basis of the total value of the
       client’s portfolio as of the last business day of the immediately preceding calendar quarter.

      If more than 25% of the client’s portfolio is invested in equities and/or real estate, the annual fee
       will be 0.65%, calculated and paid quarterly in arrears, on the basis of the total value of the client’s
       portfolio as of the last business day of the immediately preceding calendar quarter.

B. Fee Payment Method – SRB invoices its clients each quarter for payment of its fees; SRB does not
   deduct its fees from client portfolios.

C. Other Fees and Expenses
      Custody – the fee of the custodian of client assets managed by SRB is included in SRB’s fee; there
       is no additional cost to the client for custodial services.
      Fixed Income Manager – the fee of a registered investment adviser that manages portfolios of fixed-
       income securities is included in SRB’s fee; there is no additional cost to the client for this service.
      Investment Accounting Systems – half of the cost of investment accounting systems is included in
       SRB’s fee; the other half is an additional cost paid directly by the client. SRB’s staff includes
       accountants who provide investment accounting services; the cost of such services is included in
       SRB’s fee.
      Marketable Equity and Fixed Income Securities Trading – transaction costs for trading securities,
       such as brokerage commissions, are deducted directly from the client’s portfolio. Please refer to

Item 7 – Types of Clients

SRB’s clients are property/casualty insurance companies and companies related to them. SRB’s clients do
not include individuals, trusts, investment companies, or pension plans.