Blackhill Capital Inc

FEES AND COMPENSATION

Fees are calculated on the basis of the gross market value (excluding debit balances owed) of the assets
under management, including cash balances and cash held in money markets, in each client’s portfolio on
the last business day of each calendar quarter, after adjusting upward or downward for any additions or
withdrawals during the quarter. Fees are paid directly from a client’s account under a written
authorization for such payments.

Compensation is not payable before investment supervisory services are provided. Clients may terminate
an investment advisory contract upon 90 days prior written notice, in which case, the fee is apportioned
as of the termination date.

Clients’ fees for investment supervisory services are negotiable and are payable when invoiced at the
following rate(s): 1.00% - 3.00% per annum.

Clients will incur standard brokerage costs on securities transactions; this is explained in the Brokerage
Practices section of this brochure.

PERFORMANCE-BASED FEES AND SIDE-BY-SIDE MANAGEMENT

This item is not applicable.

TYPES OF CLIENTS

Blackhill Capital generally provides investment advice to high net worth individuals and family groups,
trusts, and charitable organizations.

METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS

Blackhill Capital invests primarily in equities. Our investing process emphasizes a thorough examination
of a company’s financial data and an objective appraisal of management. It places prime importance on
analyzing a firm’s past and current financial data because the basic financial characteristics of most
medium-to-large corporations tend to change gradually over time. Consequently, forecasting even in the
best of circumstances can prove erroneous. We believe that an accurate assessment of value and
management is the dependable barometer of identifying superior companies.

The heart of Blackhill Capital’s investment strategy is a value orientation that implies a conservative
approach. Requiring considerable information and understanding, this approach can mean identifying a
company before the marketplace has recognized its true asset value, selecting a company that investors
might have ignored, or recognizing those companies undergoing advantageous changes. Since a value
orientation can result in investments that are contrary to general market expectations, our approach
encompasses a one-to-five-year time horizon. Always though, every decision is preceded by a thorough
study of a firm as though its entire purchase was being considered.

We utilize a conservative, defensive, longer-term investing focus emphasizing tax efficiency and low
portfolio turnover. We maintain a strict fiduciary standard with all our investing clients; we utilize a fully
independent custodian for all investments, and all our securities are liquid, transparent, and trade freely
on national stock exchanges. We believe that investing is not a sprint to some short-term goals, but rather
a marathon for all of one’s lifetime and perhaps beyond, a discipline involving patience, perseverance,
constant vigilance, flexibility, intellectual integrity and a healthy dose of skepticism.

Investing in securities involves the risk of loss that clients should be prepared to bear including, but not
limited to, stock market fluctuations that occur in response to economic and business developments.