Elk Hill Advisors Inc

Item 5 – Fees and Compensation
EHA is a fee-only investment advisor. We receive fees from our clients based on the value of
their portfolio and are not compensated for selling any products or using a particular broker
or mutual fund. The fee schedule for investment advisory services will be as follows:

Annual fee = 0.75% of assets under management
The fee schedule for consulting services provided to sponsors of defined contribution and
profit-sharing plans will be as follows:
Annual fee = 0.40% of assets under management
EHA also shares fees with BCA for assistance in joint investment advisory and consulting
relationships (see Item 4). The 401(k) plan consulting services provided in conjunction
with BCA are separate and distinct from those provided solely by EHA (see Item 4). Advisory
fees are based on the above schedule or some other mutually agreed upon fee and are split
between the two firms.

EHA requests a minimum account size of $50,000 for investment advisory relationships,
although this is negotiable. There is no required minimum for sponsors of defined
contribution plans receiving consulting services. The specific way fees are charged is
established in a client’s written agreement with EHA. EHA bills its fees on a quarterly basis.
Under special circumstances, fees may be negotiated both above and below the stated
schedule. Fees are assessed only for that portion of a quarter for which services were
rendered. Fees will be charged in arrears and are based on the quarter-ending account
values. Clients may elect to be billed directly for fees or to authorize EHA to directly debit
fees from client accounts. Fees may be adjusted for material additions and withdrawals.
Accounts initiated or terminated during a calendar quarter will be charged a prorated fee.
Services may be terminated at any time upon written notice. Upon termination of any
account, any earned, unpaid fees will be due and payable.

EHA’s fees are exclusive of brokerage commissions, transaction fees, and other related
costs and expenses which may be incurred by the client (please see Item 12, Brokerage
Practices for more information). 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 are in addition to EHA’s fee, and EHA shall not
receive any portion of these commissions, fees, and costs.

Item 7 – Types of Clients
EHA provides portfolio management services to individuals, corporations, pension and
profit-sharing plans, trusts, estates, and charitable organizations. EHA provides consulting
services to pension and profit-sharing plans.