DAC Davis Investment Counsel Inc

Item 5 – Fees and Compensation

D.A.C. Davis Investment Counsel, Inc. follows the fee schedule listed below:

1.75%          on the first            $1,000,000

1.25%          on the next             $2,000,000

3/4 of 1%      on the                  Balance

All fees are subject to negotiation.

D.A.C. Davis Investment Counsel, Inc. charges fees as a percentage of assets under
management. The specific manner in which fees are charged by D.A.C. Davis Investment
Counsel, Inc. is established in a client’s written agreement with D.A.C. Davis Investment
Counsel, Inc. D.A.C Davis Investment Counsel fees are based on the market value of client
assets under the Firm’s management, including cash, accrued interest and accrued
dividends. D.A.C. Davis Investment Counsel, Inc. bills its fees on a quarterly basis. Clients are
billed in arrears each calendar quarter. Clients may also elect to be billed directly for fees or
to authorize D.A.C. Davis Investment Counsel, Inc. to directly debit fees from client accounts.
Management fees shall be prorated for each capital contribution and withdrawal made
during the applicable calendar quarter. Accounts initiated or terminated during a calendar
quarter will be charged a prorated fee. Upon termination of any account, any earned, unpaid
fees will be due and payable.

D.A.C. Davis Investment Counsel, Inc.’s fees are exclusive of brokerage commissions,
transaction fees, and other related costs and expenses which shall be incurred by the client.

Clients may incur certain charges imposed by custodians, brokers, third party investment
and other third parties such as fees charged by managers, custodial fees, deferred sales
charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and other
fees and taxes on brokerage accounts and securities transactions. Mutual funds and
exchange traded funds also charge internal management fees, which are disclosed in a fund’s
prospectus.

Such charges, fees and commissions are exclusive of and in addition to D.A.C. Davis
Investment Counsel, Inc.’s fee, and D.A.C. Davis Investment Counsel, Inc. shall not receive any
portion of these commissions, fees, and costs.

Item 12 further describes the factors that D.A.C. Davis Investment Counsel, Inc. considers in
selecting or recommending broker-dealers for client transactions and determining the
reasonableness of their compensation (e.g., commissions).

Item 7 – Types of Clients

D.A.C. Davis Investment Counsel, Inc. currently provides portfolio management services to
individuals and high net worth individuals.