Zock Robert A & Co Inc

Item 5 – Fees and Compensation
Our fee charged for investment advisory services is payable quarterly in arrears and is based on the
market value of assets on the last day of the quarter.

Annual fees for investment management of new accounts are 0.75% of the market value of assets under
management up to $2,000,000 and 0.60% for the amount in excess of $2,000,000.

Annual fees for investment management accounts established prior to 2008 are made up of the
combination of a fee charged to income and a fee charged to principal according to the following
schedule:

Income Portion:                 6% of gross income (other than capital gains).
Market Value Portion:           0.5% on an annual basis of the first $500,000 of market value.
                                0.3% on an annual basis of the next $500,000 of market value.
                                0.1% on an annual basis in excess of $1,000,000 of market value.

We also provide administrative assistance and advice for client non-US multicurrency securities
accounts. Clients are charged a 1.0% annual fee based on the quarterly market value of such accounts.

In certain circumstances, negotiated fees are established that reflect the additional administrative
service of trusteeship.

If the investment advisory agreement is executed at any time other than the first day of the calendar
quarter, our fee will apply on a pro rata basis, which means that the advisory fee is payable in
proportion to the number of days in the quarter for which you are client.

At our discretion, we may combine the account values and family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in your paying a reduced advisory fee
based on the available breakpoint in our fee schedule stated above. We also reserve the right to
discount fees.

As stated and mutually agreed in our investment management agreement, we will deduct our fee
directly from your account through the qualified custodian holding your cash and securities. The
qualified custodian will deliver an account statement to you at least quarterly. These account
statements will show all disbursements from your account. You should review all statements for
accuracy.

As client you may terminate the management agreement with us upon written notice; we may
terminate an investment management agreement upon 30 days written notice. You will incur a pro rata
charge for services rendered prior to the termination of the management agreement.

Additional fees that you may pay in connection with our services include charges for a third-party
custodian. Most of our clients choose to use a third-party custodian that specializes in trust accounting
and provides in-house preparation of trust tax returns and also provides individual tax return
preparation if needed. Clients of our firm sign a custodian agreement with the third-party and agree to
pay for custodian fees and ancillary services according to their fee schedule. The fee schedule of this
third-party is set out in the custodian agreement.

Brokerage activity is directed by us to firms specializing in institutional trading. Brokerage fees charged
to your account to execute trades are typically five cents per share or less.

Very rarely, ETF’s and mutual funds may be used in your portfolio. These investments carry additional
and varying underlying management fees. Robert A. Zock & Co., Inc. has no financial arrangement with
any provider of such funds.

Item 7 – Types of Clients
We offer investment advisory services to individuals, trusts, estates and charitable organizations.

We require a minimum of $500,000 to open and maintain an advisory account. At our discretion, we
may waive this minimum account size.

While no minimum asset value is required, our minimum fee is $1000 per year for accounts held in
investment management with assets held in bank custodianship.