Eliot Finkel Investment Counsel LLC

Item 5. Fees and Compensation

EF Invest’s fee structure is:

          Portfolio Value                                               Annual Rate
          For assets less than $500,000                                 1.25%
          Plus for assets between $500,000 and $1,000,000               1.00%
          Plus for assets between $1,000,000 and $3,000,000             0.75%
          Plus for assets over $3,000,000                               0.50%

Fees are negotiable. Invoices are included with each quarterly report, based on assets under
management at the beginning of the quarter and billed in advance. Clients may choose whether
fees are paid directly or by the custodian.

Clients may incur brokerage commissions, custodial fees and other fees or expenses. We do
not receive any portion of these commissions, fees and expenses. A client may terminate our
services at any time, in which case a refund will be made prorated by time of service.

Item 7.    Types of Clients

EF Invest manages investments on behalf of individuals, high net worth individuals, pension
and profit sharing plans, trusts and charitable organizations. Our minimum account is
$500,000 which may be waived for clients with substantial future earning capacity.