Everett Harris & Co

Item 5 – Fees and Compensation

The maximum annual fee charged will not exceed 0.75%. Occasionally, flat fees are
charged not to exceed the equivalent of 0.75%. Fees to be assessed will be outlined in the
client’s written agreement with Everett Harris. Annualized fees are billed on a pro-rata
basis quarterly in advance based on the value of the account(s) on the last day of the
previous quarter. Everett Harris does not make adjustments for deposits and
withdrawals made during the quarter. Fees are negotiable and clients may choose to have
advisory fees deducted from their account(s) or be directly invoiced. Further, it is
important to note that Everett Harris will assess advisory fees on cash and cash
equivalents held in client accounts.

As part of this process, Clients understand the following:

  a) The client’s independent custodian sends statements at least quarterly showing the
     market values for each security included in the Assets and all account disbursements,
     including the amount of the advisory fees paid to Everett Harris; and
  b) Clients will provide authorization permitting Everett Harris to be directly paid by
     these terms. Everett Harris will send an invoice directly to the custodian.
  c) If our firm sends a copy of our invoice to the client, a legend urging the comparison of
     information provided in our statement with those from the qualified custodian will be
     included.

Clients may incur transaction fees for trades executed by their chosen custodian, either
based on a percentage of the dollar amount of assets in the account(s) or via individual
transaction charges. These transaction fees are separate from Everett Harris’ advisory
fees and will be disclosed by the custodian.

Clients may also pay other fees imposed by the chosen custodian for certain investments,
charges imposed directly by a mutual fund, index fund, or exchange traded fund, which
shall be disclosed in the fund’s prospectus (i.e., fund management fees, initial or deferred
sales charges, mutual fund sales loads, 12b-1 fees, surrender charges, variable annuity
fees, IRA and qualified retirement plan fees, and other fund expenses), mark-ups and
mark-downs, spreads paid to market makers, fees for trades executed away from
custodian, wire transfer fees and other fees and taxes on brokerage accounts and
securities transactions. Everett Harris does not receive any of these fees.

Item 12 further describes the factors that Everett Harris considers in selecting or
recommending broker-dealers for client transactions and determining the
reasonableness of their compensation (e.g., commissions).

Either party may terminate the advisory agreement signed with Everett Harris in writing
at any time. Upon termination of any account, any prepaid, unearned fees will be
promptly refunded, and any earned, unpaid fees will be due and payable.

Neither Everett Harris nor its representatives sell securities for a commission in advisory
accounts.

Item 7 – Types of Clients

Everett Harris provides portfolio management services to high net worth
individuals, corporations, pension and profit-sharing plans, charitable institutions,
foundations, endowments, and other U.S. institutions.

In most cases, new clients will be required to maintain combined billable assets
under management of at least $2 million in their accounts managed by Everett Harris
& Co.

There may be times when certain restrictions are placed by a client, which prevents
Everett Harris from accepting or continuing to manage the account. Everett Harris
reserves the right to not accept and/or terminate management of a client’s account if
the client-imposed restrictions would limit or prevent Everett Harris from meeting
and/or maintaining its investment strategy.

Prior to entering into an investment management agreement with Everett Harris, a client
should carefully consider: 1) committing to management only those assets that the client
believes will not be needed for current cash-flow needs and that can be invested on a
long- term basis, usually a minimum of five to seven years, 2) that volatility from investing
in the stock market can occur, and 3) that over time the client’s assets may fluctuate and
at anytime be worth more or less than the amount invested.