Montgomery Investment Management's fees apply to all clients (both discretionary and non-discretionary) and are charged to the account in advance, on a calendar quarter basis. Fees may be paid directly or upon written client request be deducted from the account. Accounts opened during the quarter will be assessed a pro-rated portion of the fees. Montgomery may adjust fees with 30 days prior written notice.

The Agreement contract extends for twelve months and is renewed automatically. The client may terminate the contract at any time upon written notice. Montgomery may terminate the contract with 15 days prior written notice. Refunds of excess fees will be determined on a pro rata basis according to the number of days remaining under the contract measured either from the date written notice is received from the client or sent to the client by Montgomery.

Our all-inclusive fees are based on the market value of the assets under management. We believe this is a significant advantage to the client because our fees are never influenced by a need to generate commissions or promote a particular investment or mutual fund.

Montgomery Investment Management does not receive compensation from the broker/dealer for any investment advisory client transactions. Its fee for rendering advice is paid directly by the client. No employee of Montgomery may receive commissions from orders placed by Montgomery. Koonce Securities, Inc., or the principals may hold securities recommended for purchase or sale by Montgomery's clients. Montgomery's clients will be notified of this practice before retaining the firm and annually thereafter.