Founders Capital Management LLC

Item 5 Fees and Compensation
Portfolio Management Services
The annual fee for portfolio management services is calculated based on the type of investment.
Equity portfolios will be charged as a percentage of assets under management, at 1% on equity
investments held in the account. The annual fee for portfolio management services involving fixed
income portfolios will be charged as a percentage of assets under management at 0.75% on fixed-
income investments held in the account. There is one legacy account that was provided a 10%
discount on these stated fees.

The annual fee for portfolio management services involving U.S. Treasury and equivalent investments
will be charged as a percentage of assets under management, at 0.25% on the U.S. Treasury and
equivalent investments held in the account. There is no annual fee for cash balances in the account.
For clients whose investment objective is in some way balanced between fixed income and equity
securities, the total fee will be adjusted within the fee ranges above. Also, one legacy client was given
a 10% legacy asset discount due to amount of his legacy assets.

Fees are subject to negotiation based on asset size and legacy securities, and will be agreed upon at
the inception of the relationship.

A minimum of $100,000 of assets under management is required for portfolio management services.
This account size may be negotiable for related accounts and under certain circumstances.

Clients will be invoiced in advance at the beginning of each calendar quarter based upon the value
(market value or fair market value in the absence of market value, plus any credit balance or minus
any debit balance), of the client's account at the end of the previous calendar quarter.

Termination of Client Accounts
A client agreement may be canceled at any time, by either party, for any reason upon receipt of 30
days written notice. Upon termination of any account, any prepaid, unearned fees will be promptly
refunded, and any earned, unpaid fees will be due and payable. The client has the right to terminate an
agreement without penalty within five business days after entering into the agreement.

Payment of Advisory Fees
Clients may select to have their fees directly debited from their account or select to be billed directly.
The specific manner in which fees are charged by Founders is described in a client's written
agreement with Founders.

Founders' 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 and other third parties such as fees charged by custodians, wire transfer and
electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions. All
fees paid to Founders for investment advisory services are separate and distinct from the fees and
expenses charged by mutual funds to their shareholders. These fees and expenses are described in
each fund's prospectus and will generally include a management fee, other fund expenses, and a
possible distribution fee. A client could invest in a mutual fund directly, without the services of
Founders. In that case, the client would not receive the services provided by Founders which are
designed, among other things, to assist the client in determining which mutual fund or funds are most
appropriate to each client's financial condition and objectives. Accordingly, the client should review
both the fees charged by the funds and the fees charged by Founders to fully understand the total
amount of fees to be paid by the client and to thereby evaluate the advisory services being provided.
Founders shall not receive any portion of these commissions, fees, and costs.

Item 12 further describes the factors that Founders considers in selecting or recommending broker-
dealers for client transactions and determining the reasonableness of their compensation.

Item 7 Types of Clients
Founders clients consist of individuals, high net worth individuals and charitable organizations.