Verizon Investment Management Corp

Item 5 – Fees and Compensation

REIMBURSEMENT FOR COST OF SERVICES

BAMT and the savings trusts reimburse VIMCO for its actual costs in providing advisory
services to those entities except for certain of such costs that are borne by Verizon.
Reimbursements are processed monthly for BAMT and monthly for the savings trusts, in
arrears, and payment is deducted directly from client assets. These reimbursements are
exclusive of brokerage commissions, transaction fees, custodial fees, transfer taxes, wire
transfer fees, third party manager fees and other fees, costs and taxes charged by
custodians, investment managers, broker-dealers and other third parties unaffiliated with
VIMCO. VIMCO does not receive any portion of such third party fees, commissions and
costs. Verizon bears the expense of VIMCO’s provision of advisory services to WUT, VEBA
N, the VEBA trusts, Verizon’s charitable foundation and the captive insurance company.
However, these clients are responsible for brokerage commissions, transaction fees,
custodial fees, transfer taxes, wire transfer fees, third party manager fees and other fees,
costs and taxes charged by custodians, investment managers, broker-dealers and other
third parties unaffiliated with VIMCO. See Item 12 of this Brochure for a further discussion
of brokerage practices.

VIMCO makes a short-term investment fund, maintained by BAMT’s custodian, available to
certain third party managers for cash management purposes. In exchange for this service,
those third party managers that manage assets on behalf of BAMT have agreed to reduce
the management fees they charge BAMT by an amount equal to 0.08% (eight basis points)
per annum of the amount they cause to be invested in the short term investment fund.

INDIRECT FEES AND EXPENSES

Certain clients’ assets may be invested in exchange traded funds, hedge funds, private
equity funds, collective investment trusts, mutual funds and other pooled investment
vehicles. These pooled investment vehicles charge management fees and other expenses to
investors therein (either directly or indirectly by deducting payment from investors’
interests in the pooled investment vehicle), as disclosed in the offering documents,
subscription documentation, investment management agreements and/or financial
statements of the particular vehicle. Clients invested in pooled investment vehicles also
indirectly bear the underlying costs of the investments made by such vehicles.

ADDITIONAL COMPENSATION

Neither VIMCO nor any of its employees accept direct compensation, including sales
charges or service fees, from any person for the sale of securities or other investment
products; nor does VIMCO receive any direct compensation from any third party
investment managers selected to manage client assets. However, VIMCO employees may
accept business meals, gifts and entertainment from service providers to its clients
consistent with U.S. Department of Labor guidance and VIMCO’s Code of Conduct.

Item 7 – Types of Clients

VIMCO provides discretionary investment management services to: (1) Verizon’s pension
trusts, savings trusts, VEBA trusts and charitable foundation, and (2) VEBA N, for which a
wholly-owned subsidiary of VIMCO serves as the general partner and through which two
VEBA trusts invest as limited partners. VIMCO also provides non-discretionary investment
advisory services to Verizon’s captive insurance company. Each of the pension trusts,
savings trusts, VEBA trusts, charitable foundation, VEBA N and the captive insurance
company is sometimes referred to herein as a “client” and collectively, as “clients.”

As an in-house asset manager, VIMCO does not have any requirements for opening or
maintaining an account, such as minimum account size.