Grassi Investment Management LLC

Item 5: Fees and Compensation
      Description
We base our fees on a percentage of assets under management.
We, in our sole discretion, may waive our minimum fee and/or charge a lesser investment
advisory fee based upon certain criteria (e.g., historical relationship, type of assets, anticipated
future earning capacity, anticipated future additional assets, dollar amounts of assets to be
managed, related accounts, account composition, negotiations with clients, etc.).

Equity and Balanced Funds

       Account Value                                         Annual Fee
       On the first $2,000,000                               1.00%
       On the next $8,000,000                                 0.75%
       On the balance of assets                               0.50%

Minimum annual fee: $10,000

Fixed Income Funds

Account Value                                                Annual Fee
On the first $10,000,000                                      0.35%
On the next $10,000,000                                       0.30%
On the balance of assets                                      0.25%

Grassi Investment Management, LLC      FORM ADV Part 2              SEC File Number: 801-57556
CRD Number: 108690                       (“Brochure”)

Minimum annual fee: $10,000
Fees may be negotiable in some circumstances.

      Fee Billing
Investment management fees are billed quarterly, in advance. Fees are calculated quarterly
based on the portfolio value of the client's assets under management, including accrued
interest, at the close of business on the last day of the prior calendar quarter. All assets in any
form in the client's account are considered in determining the portfolio value, including cash
balances, money market assets, equity, and debt positions. Fees are usually deducted from a
designated client account to facilitate billing. You must consent in advance to direct debiting
of your investment account.

      Other Fees
Custodians may charge transaction fees on purchases or sales of certain mutual funds and
exchange-traded funds. These transaction charges are usually small and incidental to the
purchase or sale of a security. The selection of the security is more important than the nominal
fee that the custodian charges to buy or sell the security.

      Expense Ratios
Mutual funds generally charge a management fee for their services as investment managers. The
management fee is called an expense ratio. For example, an expense ratio of 0.50 means that the
mutual fund company charges 0.5% for their services. These fees are in addition to the fees paid
by you to us.
Performance figures quoted by mutual fund companies in various publications are after their fees
have been deducted.

Item 7: Types of Clients
      Description
We generally provide investment advice to individuals, pension and profit-sharing plans, trusts,
estates, or charitable organizations, corporations, or business entities.
Client relationships vary in scope and length of service.

Grassi Investment Management, LLC     FORM ADV Part 2              SEC File Number: 801-57556
CRD Number: 108690                      (“Brochure”)

We generally require discretionary advisory clients to maintain a minimum account size of
$1,000,000, although this minimum may be waived in certain circumstances. Clients receiving
ongoing asset management services will be assessed a $10,000 minimum annual fee. Clients
with assets below the minimum account size may pay a higher percentage rate on their annual
fees than the fees paid by clients with greater assets under management.