Nichols & Pratt Advisers LLP

Item 5 – Fees and Compensation

The specific manner in which fees are charged by Nichols & Pratt Advisers, LLP is
established in a client’s written agreement with us where there is a written contract. In the
one instance where there is no written contract (which is the case between the trustees of
Nichols & Pratt, LLP and Nichols & Pratt Advisers, LLP), a verbal agreement on fees to be
charged exists. We will generally bill our fees in arrears on a semi-annual basis. Clients

                                   Nichols & Pratt Advisers, LLP

normally authorize us to directly debit fees from their accounts. Accounts initiated or
terminated during a calendar quarter are charged a prorated fee. Upon termination of an
account, any earned unpaid fees will be due and payable. In cases where client assets are
invested in mutual fund shares or exchange traded fund shares, and where no other fee
adjustment has been made, the client pays two management fees, one directly to Nichols &
Pratt Advisers, LLP and one indirectly to the adviser of the mutual fund and/or the
exchange traded fund with respect to the account’s assets invested in the fund along with
any other fees and expenses incurred by the fund. Such fees and expenses are exclusive of
and in addition to any fees paid to Nichols & Pratt Advisers, LLP, and we do not receive or
bear any portion of those fees and costs.

The advisory fees we charge cover customary custodian fees for asset safekeeping and
recordkeeping – i.e., such that clients are not charged separately for such fees (except in
special circumstances negotiated by a particular client). We calculate our advisory fee on
the total fair market value of the account as follows:

                      Market Value                              Annual Rates
                      First $1,000,000                          $9.50 per $1,000
                      Next $1,000,000                           $8.50 per $1,000
                      Next $1,000,000                           $7.50 per $1,000
                      Next $2,000,000                           $6.00 per $1,000
                      Above $5,000,000                          $4.00 per $1,000

All fees are subject to negotiation. In negotiating the fee, we consider the value of the
assets under management as well as the scope of services required by the client.

Nichols & Pratt Advisers, LLP may impose fees higher or lower than those set forth above
for any account based on the particular circumstances, including the type of investment
product provided, the complexity and level of services required, mechanics of operation,
the types and levels of investment restrictions or policies imposed on the account, whether
there is a pre-existing relationship with the client, or other circumstances. We have varied
our normal fee schedule over time and existing accounts may bear management fees
computed in a manner different from those set forth above.

Nichols & Pratt Advisers, LLP’s fees are charged in addition to brokerage commissions,
transaction fees, tax information or tax preparation fees, and other related costs and
expenses that are incurred by the client. Clients may incur certain transactional charges

                                    Nichols & Pratt Advisers, LLP

imposed by custodians, brokers, third party investment managers and other third parties
such as fees charged by outside managers, deferred sales charges, odd-lot differentials,
transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on securities
transactions. Mutual funds and exchange traded funds in which client assets may be
invested also charge internal management fees, and other fees and expenses, which are
disclosed in a fund’s prospectus and shareholder reports, and will generally be incurred by
clients in addition to fees imposed by Nichols & Pratt Advisers, LLP. The tax preparation
fee is paid to Nichols & Pratt, LLP. As stated in Item 10, the partners of Nichols & Pratt, LLP
are also partners of Nichols & Pratt Advisers, LLP. The partners of Nichols & Pratt, LLP in
their capacity as trustees are clients of Nichols & Pratt Advisers, LLP. The charges, fees and
commissions described in this paragraph are exclusive of and in addition to the fee charged
by Nichols & Pratt Advisers, LLP, and, other than the tax preparation fee which is paid to
Nichols & Pratt, LLP, we do not bear or receive any portion of these charges, fees and
commissions.

Item 12 further describes the factors that Nichols & Pratt Advisers, LLP considers in
selecting or recommending broker-dealers for client transactions.

The Firm uses GlobeTax to provide foreign tax reclamation services which allows our
clients to reclaim certain foreign taxes that were withheld from dividends on foreign
securities in excess of the clients’ statutory tax obligation. GlobeTax collects their fee for
this service from the reclaimed funds when those funds are received from foreign tax
authorities. Participation in the program is optional for our clients. Complete information
about GlobeTax, their services and fee structure is provided to clients before their
enrollment, and is also available upon request.

The Firm uses Financial Recovery Technologies (“FRT”) to provide class action filing and
collection services on behalf of our clients. This service provides our clients with a broad
coverage of class actions. FRT’s fee is a percentage of the class action proceeds and is
collected when benefits are received.

Item 7 – Types of Clients

Nichols & Pratt Advisers, LLP provides investment advisory services principally to trustees
of revocable and irrevocable trusts, including the partners of Nichols & Pratt, LLP, a firm
made up of trustees, who are also the partners or related persons of Nichols & Pratt
Advisers, LLP. We also provide investment advice to individuals, estates and foundations
as well as a major law firm and a trust company.

Although we do not require a minimum dollar value of assets to open or maintain an
account, Nichols & Pratt Advisers, LLP will not accept accounts from prospective clients
whose investment orientation differs substantially from our fundamental, relatively low-
turnover, long-term investment philosophy.