Demers Constance Elaine

Item 5: Fees and Compensation

A. The Firm’s Fees and Compensation for Services.

The fee that is charged for Demers’ services is comprised of a fixed, flat, negotiated fee equal to
0.75% of Investment Assets.

Demers defines “Investment Assets” to mean those assets within the account that are the subject
of its services. Fees are calculated annually and then billed in quarterly installments in advance
and are negotiable.

Fees charged by the firm are in addition to any management fees or other expenses charged by any
investment company in which client assets are invested, and any brokerage and custodial fees
imposed by the client’s broker-dealer and/or custodian. A client shall obtain a refund of a pre-paid
fee if the advisory contract is terminated before the end of the billing period. Demers will
determine the amount of refund that is available, if any, by calculating the pro-rated portion of the
fee that remains based on the date of termination and such amount shall be refunded to the client.

B. General Information on Fees.

1. The firm generally requires a minimum account size of $500,000. Nonetheless, all fees and
account minimums are negotiable.

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2. Demers’ fees may be deducted from the client’s account by the client’s account custodian, or,
in the alternative, the client may pay Demers’ fee directly. If fees are deducted, three criteria must
be met when payment is made by the custodian: (1) the client must provide written authorization
permitting the fees to be paid directly from the client’s account held by the independent custodian;
and (2) the custodian agrees to send to the client a statement monthly indicating all amounts
disbursed from the account including the amount of advisory fees paid directly to Demers. Demers
does not and will not have custody of clients’ funds or securities.

With respect to Demers’ investment management services, the client will also incur charges
imposed directly by the custodian of the client’s account, transaction charges imposed by the
broker-dealer executing securities transactions for the client’s account, and fees and expenses
imposed directly by mutual funds held in or for the client’s account. For further discussion
concerning Demers’ brokerage practices, please see Item 12 of this Disclosure Brochure. All fees
paid to Demers for its services are separate and distinct from the fees and expenses charged directly
by the client’s custodian, the broker-dealer, and mutual funds. The fees and expenses imposed by
mutual funds are described in each fund’s prospectus, and will generally include a management
fee, other fund expenses, and a possible distribution fee. If the fund also imposes sales charges, a
client may pay an initial or deferred sales charge. The client should review both the fees charged
by the funds and the fees charged by Demers to fully understand the total amount of fees to be paid
by the client and to thereby evaluate the advisory services being provided.

Item 7: Types of Clients

A. The Firm’s Clients.

The firm’s client base is comprised of individuals and high net worth individuals.

B. Requirements for Opening or Maintaining an Account.

1. Minimum Fee. Unless waived or negotiated in advance, Demers requires a minimum fixed
fee per year of $5,000 for investment management services clients.

2. Minimum Account Size. Unless waived due to negotiations, Demers requires a minimum
account size of $500,000.

3. Servicing Agreement. Each client will be required to sign a servicing agreement with Demers
that sets forth the terms and conditions of their relationship with Demers.

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