US Asset Management LLC

Item 5 – Fees and Compensation

For our investment advisory service clients, we are compensated through fees paid by the
client. We do not earn a commission for transaction-based services. For our business
services, we will be paid a fee tailored to the services requested by a particular client.

Fees for Investment Advisory Services

       Prior to commencing this type of engagement, US Asset and the client will enter into
       an Investment Advisory Agreement that will set forth the terms and conditions of that
       engagement, describe the scope of the services to be provided to the client and
       provide fee arrangements, including the timing and manner of payment.

       •   Annual Fee

           Our typical annual fee schedule shown below:

                 $500,000        TO $1,000,000            1.00%
                $1,000,001       TO $5,000,000            0.85%
                        IN EXCESS OF $5,000,000          Negotiable
       Our fee schedule is always appended to our client’s Investment Advisory Agreement.
       Oftentimes, the fee schedule differs from the fees set forth above so that US Asset can
       be flexible in adjusting to a client’s particular situation.

       The US Asset management fee is based on assets under management at the close of
       the calendar quarter, calculated according to accepted accounting standards. Due to
       inconsistencies in pricing and accrual methods between RIAs and Banks, the custodial
       values may differ from the investment industry standards for issues including, but not
       limited to, bond pricing, accrued income and pricing of warrants. The US Asset AUM is
       always based on industry standard values without accrued income.

       A written invoice will be sent to the address of record requesting payment for the
       services upon receipt. The details of the fee calculation are reflected in the client’s
       invoice, and/or quarterly portfolio review and monthly custodial statement.

       If either US Asset or the client terminates the Investment Advisory Agreement, US
       Asset’s annual fee will be prorated and billed based upon the actual number of days
       US Asset was the advisor during that quarter through the termination date up to
       ninety days after notice. All client contracts are subject to termination by either party
       by giving written notice of up to 90 days.

       •   Other fees

           US Asset reserves the discretion to purchase investments (e.g., mutual funds) on
           behalf of a client which could have fees associated with them (e.g., manager fees)

           that are charged separately and are in addition to the fees charged by US Asset.
           However, US Asset does not currently receive any portion of the fees known as soft
           dollars, nor do we accept 12b-1 fees or commissions.

Item 7 – Types of Clients

We provide our services to a number of client types, including among others, the following:

       •   Public Pension Funds (local government, county, state, etc.)

       •   Government Cash Management and Construction Accounts

       •   Trust/Endowment Funds

       •   Institutional Trust Departments

       •   Retirement plans (e.g., 401k and 457 plans, profit sharing plans, etc.)

       •   Institutional Asset management accounts

       •   High net worth
US Asset generally requires an aggregate account minimum of $1,000,000 for its investment
advisory services; however, depending on the circumstances, we occasionally retain a client
with a smaller portfolio and/or negotiate our fee.