Vectors Research Management LLC

Item 5: Fees and Compensation

Item 5.A. Fee Schedule

VAM bases its fees on a percentage of assets under management.
For Investment Grade Fixed Income Institutional Accounts, the basic annual fee schedule
is as follows:

                            Vector Research Management, LLC

                             First $10,000,000 in assets     .35%
                             Next $10,000,000 in assets      .30%
                             Next $10,000,000 in assets      .25%
                             Next $20,000,000 in assets      .20%
                             Next $20,000,000 in assets      .15%
                             Next $30,000,000 in assets      .10%
                             Over $100,000,000 in assets .08%
For Accounts that include management of Equity, High Yield, Preferred, Non-Agency,
and other securities requiring more significant analytics and resources, management fees
are 1% of total market value of assets provided by the custodian and validated by the
Firm.
Fees are paid in arrears based on total account value at the end of each quarter. The
Management Fee is prorated for any period that is less than a full fiscal quarter. The fees
may be negotiable.
The fees on asset valuation consulting services to financial institutions are negotiated on
either a percentage of market valued assets, hourly rate, or fixed fee basis.

VAM may terminate any of the aforementioned agreements at any time by notifying the
client in writing. If the client made an advance payment, VAM will refund any unearned
portion of the advance payment pro-rata any unearned portion of the advance payment.
For clients billed in arrears, fees will be billed on a pro-rata basis for the portion of the
quarter where advisory services were provided.

Item 5.B. Fee Payment
Investment management fees are billed quarterly on calendar quarter end periods, in
arrears, meaning that the Adviser invoices the client after the three-month billing period
has ended. Fees will be prorated on partial quarter periods. Payment in full is expected
upon invoice presentation. The Adviser may deduct fees from client accounts with certain
custodians upon request.
VAM, in its sole discretion, may waive its minimum fee and/or charge a lesser investment
advisory fee based upon certain criteria (e.g., “relationship pricing” for multiple accounts,
historical relationship, type of assets, anticipated future earning capacity, anticipated future
additional assets, dollar amounts of assets to be managed, related accounts, account
composition, negotiations with clients, etc.).

Item 5.C. Other Fees

VAM’s fees are exclusive of brokerage commissions, transaction fees, and other related
costs and expenses that may be incurred by the client. Such charges, fees and commissions
are exclusive of and in addition to VAM’s fee, and VAM shall not receive any portion of

                           Vector Research Management, LLC

these commissions, fees, and costs. VAM works with counterparties in an effort to
minimize other fees for the benefit of the client.

Mutual funds generally charge a management fee for their services as investment
managers. The management fee is called an expense ratio. For example, an expense ratio
of 0.50 means that the mutual fund company charges 0.5% for their services. Where
applicable, these fees are incorporated in the returns generated by the fund.
Performance figures quoted by mutual fund companies in various publications are after
their fees have been deducted.

Item 5.D. Prepaid Fees

VAM does not require payment of fees in advance.

Item 5.E. Compensation for Sale of Securities

VAM, and its associated persons, do not receive compensation for the purchase or sale of
securities or for other investment products.

Item 7: Types of Clients

VAM generally provides investment advice to institutions, endowment and foundation,
banks or thrift institutions, investment companies, insurance companies, pension and
profit-sharing plans, trusts, estates or charitable organizations, corporations or business
entities, endowment and foundations, and high net worth individuals. Client relationships
vary in size, scope, and length of service.

Generally, the minimum initial investment for separate account management is
$10,000,000 for institutions and $500,000 for individuals. The Adviser reserves the right
to require a different amount.

                           Vector Research Management, LLC