TSP Capital Management Group LLC

Item 5: Fees and Compensation
The investment management fee charged by TSP generally varies (see below) depending upon the
market value of assets under management and the specific investment objectives of the Client, as
follows:

Equity and Balanced Accounts (fixed income and equity):

TSP generally charges an annual fee of 1% on the first $3,000,000 of assets under management, 3/4
of 1% on the next $2,000,000 of assets under management and 1/2 of 1% on all assets under
management over $5,000,000.

Fixed Income Only Accounts:

For Client portfolios that only include fixed income securities and other investments, TSP generally
charges an annual fee which ranges from 1/4 of 1% to 1/2 of 1% on all fixed assets under
management in the account.

General:

TSP also has certain Clients that pay a flat annual investment management fee. Management fees
charged for discretionary and non-discretionary management are negotiable. Fees are generally
directly debited by TSP in advance at the beginning of each quarter based on the market value of
the assets under management in the account as of the last day of the preceding quarter. At the
request of a Client, TSP can invoice a Client for fees in lieu of direct debiting. TSP may group
family household accounts for application of its management fee.

Upon termination of an account, any prepaid unearned fees will be calculated based on the number
of days the account was open during the quarter on the date of TSP’s receipt of written notification
from the Client. Prepaid unearned fees shall be promptly refunded to the Client.

Certain investments, such as mutual funds, may also bear their own fees and expenses, which are
in addition to the advisory fees charged by TSP.

Clients pay for all of their own operating expenses. This includes all custodial fees, brokerage and
transaction costs, including commissions charged by the broker-dealer where the account is held,
and all costs of administration of the managed account. Please see the Brokerages Practices section
starting on Page 8 for a discussion of our brokerage practices. Clients should review all relevant
documentation provided by such parties in connection with entering into a custodial arrangement
with such third parties.

Neither TSP nor any of its employees receives any compensation for the sale of securities or other

investment products.

Item 7: Types of Clients
Prior to engaging TSP to provide investment advisory services, a Client will be required to enter
into one or more written agreements. Such agreement(s) may be cancelled at any time, without
penalty, by either party, for any reason, upon written notice to the other party.

TSP provides customized investment advisory services to individuals, trusts, estates, or charitable
organizations, pension and profit-sharing plans, and other corporations or business entities,
including an investment club. TSP generally requires a $500,000 per Client minimum for
investment advisory services. TSP in its sole discretion, based upon circumstances at the time, may
waive the $500,000 minimum.