Harrington Investments Incorporated

Item 5: Fees and Compensation

The standard annual investment management fee for Growth and Balanced accounts is as follows:
Market Value of Account                                Annual Rate
 Up to $2,000,000                                   1.00%
 $2,000,000 to $5,000,000                           0.75%
 $5,000,000 to $10,000,000                          0.50%
 More than $10,000,000                              Negotiated

The standard annual investment management fee for Income accounts is as follows:

Market Value of Account                                Annual Rate
 Up to $2,000,000                                   0.75%
 $2,000,000 to $5,000,000                           0.50%
 More than $5,000,000                               0.25%

All fees are negotiable. For portfolios consisting of mutual funds only, the standard annual investment
management fee is 1% of assets, which is in addition to the mutual funds’ own fees and expenses. HII charges
an hourly consulting fee of $250 for its financial planning and investment consulting services.

HII’s asset-based fee is payable in arrears at the end of each calendar quarter. HII generally causes such fees to
be deducted directly from the client's assets upon written notice to the client. Alternatively, clients can pay an
invoice we provide. If HII provides service for less than one full calendar quarter, it will pro-rate its fee based
on the number of days of the quarter HII provided its services. Earned management fees also are immediately
payable on withdrawn assets upon client withdrawal from the client’s account. Either HII or the client can
terminate the client's investment management agreement upon written notice at any time, and if a client
terminates an agreement within five (5) business days after signing the agreement, HII charges no fees for the
period between signing and terminating.

HII may hold mutual funds in client accounts to provide greater diversification among and between asset
classes or if HII judges the client’s portfolio too small for a diversified portfolio of individual stocks or bonds.
All mutual funds have fees associated with their management, and some funds also charge a distribution fee
(including so-called Rule 12b-1 fees) to cover marketing costs or fees to cover shareholder services and the
like. Clients pay these fees when HII purchases mutual funds in their accounts in addition to the investment
management fees HII charges.

Clients also pay all brokerage, transaction and custodial expenses incurred because of our management of
their portfolio. Please see Item 12 on page 16 for more information on our brokerage practices.

Harrington Investments, Inc.                   September 2025                                  Page 5

Item 7: Types of Clients

As discussed above in Item 4, HII provides investment services to individuals, trusts, estates, charitable
organizations, corporations, and other businesses. Advisory portfolio management services provided to clients
are fully discretionary, subject to client restrictions as to excluded securities. We generally require new clients
to have a minimum investment portfolio of $1 million to open an account. We, in our discretion, reserve the
right to waive this minimum. In addition, we require all clients to make representations concerning their
experience in engaging investment advisers and the risks associated in such engagements, including the risk
the client’s account could suffer substantial diminution in value. Unless otherwise agreed upon with client, HII
requires clients to open brokerage accounts at Schwab and custody their accounts assets at Schwab. Please
see Item 12 on page 15 for more information about Schwab.

In certain circumstances, HII also provides financial planning and investment consulting services to clients on
an hourly basis. There is no minimum portfolio size required for these services.

Item 8: Method of Analysis, Investment Strategies and Risk of Loss

Method of Analysis: HII uses both internal and external sources to conduct social and financial research on
securities.

Internal financial research involves using fundamental analytical methods to determine the underlying value
of a company’s stock, as well as analyzing several quantitative measures, such as valuation (e.g., price-
earnings ratio, book value, price per revenue), growth performance (earnings per share, revenues and free
cash flow), price/earnings to growth ratio, return on capital, and various debt metrics, to identify potentially
undervalued stocks and/or stocks with good growth potential.

Internal research on social screening, including environment, social and governance criteria (ESG), involves
reading reports published by independent social investing organizations, reading corporate sustainability
reports, and contacting companies, stakeholders and independent non-governmental and governmental
organizations directly.

External research on financial issues is obtained using reports and on-line information provided by Schwab
Institutional, Value Line, Morningstar, Standard & Poor’s, and a subscription to YCharts.

External research on ESG issues is conducted through multiple online tools including subscriptions to YCharts,
Sustainable Investments Institute, and Ethos ESG.

Harrington Investments, Inc.                 September 2025                                 Page 6

Investment Strategies: There are two types of investments making up most our clients’ portfolio assets:
equity securities (stocks) and fixed income securities (bonds). Our equity securities primarily include individual
stocks of large cap domestic companies, and we may also include mid-cap stocks and American Depository
Receipts (“ADRs”) representing interests in foreign stocks in a portfolio if they meet the client's financial needs
and social goals. We also may include socially screened mutual funds and exchange traded funds to provide
greater geographic, industry and market cap diversification.

Fixed income securities in which we invest include investment-grade corporate and municipal bonds, U.S.
government and agency securities, convertible securities, preferred stocks, and socially screened bond mutual
funds. We do not invest in corporate bonds or preferred stocks issued from companies unable to pass our
exclusionary social screens at the time of purchase. We do not invest in derivatives or short stock, or trade on
margin, although we will manage client assets on margin if directed by a client for a short-term loan.

As mentioned in Items 4 and 5 above, HII currently offers three investment objectives to fit the risk tolerance
of our clients. The Growth investment objective is for clients with a long-term investing horizon who are
primarily interested in investing for capital appreciation (a rise in the value of securities). The Balanced
investment objective is for more conservative clients with a medium to long-term investment horizon and who
are interested in generating primarily income (dividends and interest, respectively, paid on stocks and bonds)
along with some capital appreciation. The Income investment objective is for clients who are primarily
interested in generating income from investments and preserving principal.

All three investment objectives can be varied to fit the individual client’s risk tolerance. The general ranges of
target allocations of the three investment objectives are shown below:

 Investment Objective                                 Equities                Fixed Income   Cash Equivalents*
 Growth                                           60% - 100%                     0% - 40%            0% - 15%
 Balanced                                          35% - 55%                    35% - 55%            5% - 15%
 Income                                             0% - 30%                    60% - 75%            5% - 25%
* Includes money market funds and FDIC insured bank certificates of deposit

HII maintains a proprietary securities list of approximately 60 to 70 companies, which is updated on a regular
basis by our Investment Committee. Securities from our proprietary list are the basis for developing our
securities allocations for our clients. Except for portfolios holding primarily mutual funds, a typical client
portfolio will hold between 35 – 55 securities at any one time.

The social and financial screening process at HII consists of three phases. First, we use negative screens to
eliminate all companies negatively impacting our communities, such as the manufacturers of tobacco and
weapons, companies involved in gambling, and companies producing nuclear power (exclusionary criteria).
...