Lathrop Investment Management Company

Item 5 – Fees and Compensation

LIMC clients are charged annual fees, collected quarterly, that are based upon the market value
of assets under management as follows:

       1.00% of the first $500,000 of assets under management
       0.75% of the next $500,000 of assets under management
       0.50% of assets over $1,000,000

All fees are payable quarterly in advance and based on the market value of managed assets at the
beginning of each calendar quarter. Multiple accounts from a single client or household are
combined to determine total fees. We typically deduct fees from client assets with a copy of the
fee calculation and bill sent to the client. Either the client or LIMC may terminate the advisory
relationship by providing written notice, which shall be effective upon receipt. Fees are prorated
to the date of termination and an appropriate refund made to the client. Management fees may
be adjusted, waived or otherwise negotiated at our discretion and, therefore, certain clients may
have a different fee schedule than that described above. Our minimum annual fee per client is
$5,000, which may result in a fee as a percentage of assets under management that is higher than
the above 1% starting bracket.

Our clients determine the third-party custodian used to maintain the investment assets managed
by LIMC. We may advise our clients in that process, but do not act in that custodial role. Our
fees do not include brokerage commissions, transaction fees, or other related costs incurred by
the client. Clients may incur charges imposed by custodians, brokers and other third parties such
as fees charged by managers, custodial fees, deferred sales charges, odd-lot differentials, transfer
taxes, wire and electronic fund transfer fees, and other fees and taxes on brokerage accounts and
securities transactions. Mutual funds (including money market mutual funds) and ETFs also
charge internal management fees, disclosed in each fund’s prospectus. These charges, fees and
commissions are exclusive of and in addition to our fees. It should be noted that we do not
receive any portion of these other fees, costs or commissions. For more information about our
use of investment brokers to service your account, please refer to “Item 12 – Brokerage
Practices” of this brochure.

Neither our firm, nor its employees, accept compensation for the sale of securities or other
investment products, including asset-based sales charges or service fees from the sale of mutual
funds.

Item 7 – Types of Clients

We provide investment advice to individuals, families, trusts, estates, retirement plans,
businesses and not-for-profit institutions.