Orleans Capital Management Corp

Item 5: Fees and Compensation

OCM’s investment advisory fee is negotiable at OCM’s discretion, depending upon objective and subjective
factors including but not limited to: the amount of assets to be managed; portfolio composition; the scope and
complexity of the engagement; the anticipated number of meetings and servicing needs; related accounts;
future earning capacity; anticipated future additional assets; the professional(s) rendering the service(s); prior
relationships with OCM and/or its representatives, and negotiations with the client. As a result of these
factors, similarly situated clients could pay different fees, the services to be provided by OCM to any
particular client could be available from other advisers at lower fees.

OCM’s advisory fee is generally paid quarterly, in arrears, and is generally based upon the market value of
the assets on the last day of the previous quarter. Unless OCM agrees otherwise, in writing, OCM shall debit
the account directly for its advisory fee. OCM could agree to a fixed fee arrangement or on a different billing
interval.

Custodian Charges-Additional Fees. For Institutional clients, OCM is custodian neutral. Accounts are
maintained at the broker-dealer/custodian directed by the Institutional client. As discussed below at Item 12
below, when requested by a Retail client to recommend a broker-dealer/custodian, OCM generally
recommends that Schwab serve as the broker-dealer/custodian for client investment management assets.
Broker-dealers such as Schwab, charge brokerage commissions, transaction, and/or other type fees for
effecting certain types of securities transactions (i.e., including transaction fees for certain mutual funds,
dealer spreads, and mark-ups and mark-downs charged for fixed income transactions, etc.). The types of
securities for which transaction fees, commissions, and/or other type fees (as well as the amount of those
fees) shall differ depending upon the broker-dealer/custodian. While certain custodians, including Schwab,
generally do not currently charge fees on individual equity transactions (including ETFs), others do.

There can be no assurance that Schwab will not change its transaction fee pricing in the future.

Tradeaways: When beneficial to the client, individual fixed‐income and/or equity transactions may be
effected through broker‐dealers with whom OCM and/or the client have entered into arrangements for prime
brokerage clearing services, including effecting certain client transactions through other SEC registered and
FINRA member broker‐dealers (in which event, the client generally will incur both the transaction fee
charged by the executing broker‐dealer and a “trade-away” fee charged by the account custodian). The above
fees/charges are in addition to OCM’s investment advisory fee at Item 5 below. OCM does not receive any
portion of these fees/charges.

Item 7: Types of Clients

OCM offers discretionary investment advisory services to Institutional (i.e., primarily municipal and state
governmental entities) and Retail (i.e., high net worth individuals and families) clients on a fee basis as discussed
at Item 5 above.