Walnut Investment Services LLC

Item 5: Fees and Compensation
As fee-only independent investment advisors, we manage clients’ accounts in two ways:

   •   Active management basis – suitable for clients who expect individualized service and
       prefer to have their assets managed by a professional. They are individuals and businesses
       who usually have no desire to manage their investments on a daily basis and wish to
       simplify their lives. For them we design, implement and manage an investment portfolio
       that addresses their individual goals and needs. All such portfolios are monitored daily
       and are periodically re-assessed and re-allocated based upon market conditions and
       changes in client’s needs or objectives. All client’s accounts are set up at a reputable
       custodian. We currently use Fidelity Investments. The client receives all communications,
       trade confirmations and monthly statements directly from Fidelity so there is full
       transparency and disclosure. All active management accounts are currently charged an
       annual fee of 1% of client’s assets under management for equity accounts and ¼% for
       fixed income accounts. The fees are paid quarterly – at the end of each quarter and are
       automatically debited directly from client’s accounts.

   •   Consultative basis – suitable for clients who prefer to actively manage their own assets.
       These clients typically require an initial consultation designed to review and evaluate their
       current financial situation and to address whatever questions they might have, including,
       but not limited to: investments, taxes, insurance, retirement and estate planning. Because
       managing one’s own money is on-going process, these clients would normally need
       quarterly or semi-annual consultations for continued guidance and advise. Walnut
       Investment Services charges up to $150 per hour for such consultations, depending on the
       complexity of client’s situation. As a client, you are the sole determinate of how many
       hours of financial counseling you’ll want or need. You can terminate either arrangement
       at any time.

       Naturally, you are free to select any broker (custodian) you wish for implementation of
       our advice. However, should you want our assistance in setting up an investment account
       with Fidelity or any broker/custodian of your choice, we would be glad to provide it for
       you at no extra cost.

       In addition to our fees described above – clients will get charged transaction fees by the
       custodian for buying or selling investments such as stocks, bonds and some mutual funds.

Item 7: Types of Clients
Most of our clients are individuals and families, but we also serve small businesses, pension plans,
as well as trusts & estates.

There are currently no minimums required to open and maintain an account with us.