Pacific Harbor Holdings Limited

ITEM 5 – FEES AND COMPENSATION
Our fees for providing advisory services to separately managed account clients are negotiable and can
vary depending on factors that include the investment objective and type of the account. The negotiation
of fees may result in similarly situated clients paying different fees for comparable advisory services. To
the extent different fee arrangements exist, they are always linked to increased investment risk taken by
the particular client involved.

The management fees we charge clients for our advisory services are generally based on the annual
percentage of the value or size of the assets under management, as determined by us in good faith or by a
client’s custodian or administrator. The specific manner in which fees are charged by us is established in a
client’s IMA. Under our standard IMA, we will generally bill our fees on a monthly basis, in arrears.

Clients typically authorize us to debit fees from their accounts following the presentation of the invoice
detailing our fees to the client’s administrator for the administrator’s approval. Management fees are
prorated for each capital contribution and withdrawal made during the applicable calendar month (with
the exception of de minimis contributions and withdrawals). Accounts initiated or terminated during a
calendar quarter are charged a prorated fee. Upon termination of any account, any earned, unpaid fees
are due and payable. Clients do not pay any fees in advance.

         Pacific Harbor Holdings, Limited                                           Form ADV Part 2A

Our fees are exclusive of brokerage commissions, spreads, transaction fees, and other related costs and
expenses which are incurred by the client. Clients may incur certain charges imposed by custodians,
brokers and other third parties which can include fees charged by administrators, custodial fees, transfer
taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage accounts and
securities transactions. PHAFI and PHGRF bear the cost of their annual audit, with such expense being
passed on to the investor. Please see Item 12 below for a more detailed discussion regarding our

ITEM 7 – TYPES OF CLIENTS
Our clients currently include PHAFI, PHGRF, and the Managed Account (a charitable endowment). Our
services are available to qualified high-net worth individuals, family offices and to institutions.

We generally require separately managed account clients to have a minimum account size of
U.S.$25,000,000 to receive discretionary investment advisory services. However, we may consider waiving
the account minimums in our sole discretion after considering factors including the number of accounts
managed for a client, the nature of services rendered, any special requirements of the account(s)
managed and the totality of the relationship between us and the client.