Patten and Patten Inc

Fees and Compensation

Patten and Patten’s investment management and advisory services are provided on a “fee only” basis,
based on the value of assets under management. Patten and Patten’s fees are not performance-based,
and the Firm does not charge or collect commissions or other transaction-based fees. Management fees
are collected on a quarterly basis, in arrears, determined by the average value of the assets in the account
during the previous calendar quarter. Management fees are debited directly from client accounts unless
other acceptable arrangements are requested. Portfolio Managers may negotiate with the client an
alternate fee schedule.

It is incumbent upon Patten and Patten to seek for its clients, among other items, the best possible
execution prices, including all fees and commissions, in transactions for which the Firm has discretionary
authority over the assets. Currently, commission rates for equity trades range from as low as $0.00 to a
$0.06 per share. Occasionally, a client may direct Patten and Patten to utilize the services of a specific
brokerage firm. It is the obligation of the Firm to inform the client, in these instances, that the best
possible execution prices and/or lowest commission rates may not be obtained. At any time, however,
the client may further direct Patten and Patten to seek alternatives by providing written notice to the
Firm.

    Patten and Patten, Inc. Form ADV, Part 2A: Firm Brochure                                    Page 7 of 20

The management fee is established in the “Investment Advisory Agreement” with Patten and Patten.
Management fees are usually deducted automatically from client portfolios, on a quarterly basis, in
arrears, by applying the Schedule of Fees specified in the Investment Advisory Agreement to the average
balance of the account during the previous calendar quarter. In the event that the contract is entered
into or terminated prior to the end of any calendar quarter, such fees can be prorated accordingly. Each
client reserves the right to request direct billing.

                                   Standard Management Fee Schedule

        Assets Under Management                                Annual Fee as a Percent of Assets

                First $2,000,000                                           0.750%
                Next $3,000,000                                            0.500%
                Above $5,000,000                                           0.375%

The Firm does not accept commission or other compensation for the use of securities or other investment
products, such as 12(b)-1 charges on certain mutual funds.

Aggregation of Multiple Accounts

The Firm often aggregates the accounts of clients with multiple or related portfolios for purposes of
computing fees.

Other Fee Schedules

Under certain circumstances, some accounts may be charged a flat quarterly or annual fee for investment
management or advisory services, if mutually agreed upon by the client and the Portfolio Manager.

Negotiated Fee Schedules

Portfolio Managers may negotiate with the client an alternate fee schedule depending on a client’s
particular situation.

Fees for Other Services

From time to time, a Portfolio Manager at the Firm may enter into consulting arrangements for matters
that do not involve ongoing investment advice. These consulting arrangements are usually of limited
duration, and an hourly fee is negotiated in writing with the client. The revenues associated with this
business are generally de-minimus in nature.

Please Note: Clients may incur fees charged by their custodian such as custodial fees, mutual fund fees,
and other transaction costs. The fees that clients pay P&P do not include brokerage commissions or
charges associated with securities transactions, mark-ups or mark-downs in principal transactions,
deferred sales charges, odd-lot differentials, stock exchange fees, wire transfer or related processing fees,
transfer taxes or other charges mandated by law or regulation. The Firm does not receive any portion of
any of the aforementioned expenses or fees.

    Patten and Patten, Inc. Form ADV, Part 2A: Firm Brochure                                 Page 8 of 20

Pre-payment of Fees and Refund of Fees

A client may pre-pay management fees. A client may obtain a refund of a pre-paid fee or overpayment
by contacting the Portfolio Manager or Operations & Trading Analyst, who will request a check be issued
to the client for an appropriate refund. If an advisory contract is terminated, quarterly fees will be pro-
rated for the number of days in the quarter for which management services were provided.

Clients should be aware that similar or comparable services may be available from other firms, including
other investment management firms, at a cost higher or lower than that offered by P&P.

Employees of the Firm (i.e., Principals, Portfolio Managers, staff members), as well as qualified Related
Persons, are expected to maintain all personal accounts at the Firm. The Firm does not charge a
management fee on these accounts. However, numerous restrictions are placed on these accounts in an
effort to avoid conflicts of interests and to ensure compliance with applicable regulations. Reports are
generated daily, quarterly, and annually to monitor all employee account transactions and other activities.
Please refer to the Firm’s Code of Ethics, Participation or Interest in Client Transactions and Personal
Trading (p.11) for additional information.

Performance Based Fees and Side-By-Side Management

The Firm does not charge performance based fees.

Types of Clients

Patten and Patten, Inc. provides investment advisory and management services on a discretionary basis
to individuals, families, individual retirement plans, trusts, family partnerships, endowments, foundations,
pension and profit sharing plans, 401(k)s and other qualified institutional retirement vehicles, and other
institutional investment accounts.

The Firm has a minimum of $500,000 to establish an individual client account. Pension and profit sharing
plans with a high rate of funding (i.e., continuous investment of new funds) require a minimum of
$300,000. However, the Principals of the Firm may, at their discretion, waive the minimum account size.

Methods of Analysis, Risk of Loss, and Additional Investment Strategies