Drexel Morgan & Co

Item 5 – Fees and Compensation
Drexel Morgan’s standard annual fee for its services is as follows:

                             Account Value                             Annual Fee
                            First $ 2 Million                            1.00%
                            Next $ 3 Million                             0.75%
                            Next $ 5 Million                             0.50%
                         Amounts over $10 Million                      Negotiable

Fees are typically billed quarterly in advance based upon the market value of the account on the last trading
day of the previous calendar quarter. The client agreement generally provides that advisory fees will be
deducted directly from the client’s account.

Fees are negotiable and clients may be charged differently based on factors such as client type, asset
class, pre-existing relationship, portfolio complexity and account size or other special circumstances or
requirements. Related accounts may be aggregated for fee calculation purposes in certain circumstances.

Drexel Morgan’s fees are exclusive of brokerage commissions, transaction fees, and other related costs
and expenses which shall be incurred by the client. Clients may incur certain charges imposed by
custodians, brokers, third party investment and other third parties such as custodial fees, transfer taxes,
wire transfer and electronic fund fees, and other fees and taxes on brokerage accounts and securities
transactions. Mutual funds and exchange traded funds also charge internal management fees, which are
disclosed in a fund’s prospectus. Such charges, fees and commissions are exclusive of, and in addition to,
Drexel Morgan’s fee, and Drexel Morgan shall not receive any portion of these commissions, fees, and
costs.

Investment management agreements may be terminated at any time by either party with 30 days’ written
notice to the other party. Upon termination, the client will be entitled to a prorated refund of the advisory
fee prepaid but unearned for such calendar quarter. In addition, no advisory fee will be payable if a client

terminates an agreement within five business days of original signing. Termination language may vary by
mutual agreement.

Item 7 – Types of Clients
Drexel Morgan provides portfolio management services primarily to high net worth individuals.