Osterweis Capital Management LLC

Item 5 – Fees and Compensation

Our most common fee arrangements are described below. Please note that our fees do not include
brokerage commissions, transaction fees, and other related costs and expenses that are incurred in the
course of managing a portfolio of securities. Clients may incur charges imposed by custodians, brokers,
exchanges, and other third parties. Item 12 of this brochure describes the factors that we consider in
selecting broker-dealers for client transactions and determining the reasonableness of brokerage
commissions. Any mutual funds, limited partnerships, exchange traded funds, or other commingled
investment vehicles held in a client portfolio will charge their own expenses, administration and
management fees or separately incurred transaction settlement fees, which are disclosed by those
entities. Such charges, fees and commissions are exclusive of and, except where OCM LLC or OCM Inc.
is the adviser to such entity, in addition to the fees described below.

5.1 – Fees for Standard Clients

Most of our clients are charged a management fee equal to a percentage of their account’s market value.
This is called an asset-based fee. For the remainder of this section, we refer to clients who are charged
asset-based fees as “Standard Clients.” The manner in which fees are charged is established in each
client’s written investment advisory agreement. Clients may agree to either have their fee deducted
directly from their custody account or to pay it separately. The management fee is payable quarterly,
typically in advance, and is based on the market value of the Standard Client’s assets under management
as of the close of business on the last business day of the immediately preceding calendar quarter (the
“Account Value”).

A client who becomes a Standard Client on any day other than the last day of a calendar quarter will pay
a prorated fee for the first partial calendar quarter during which our investment advisory contract is in
effect. A Standard Client whose advisory contract is terminated on any day other than the last day of a
calendar quarter will be refunded any prepaid but unearned fee, calculated based on the number of
days remaining in the calendar quarter.

At our discretion, related groups of accounts may be aggregated for the purposes of applying the first
fee-breakpoint listed below. For Equity and Balanced accounts, the second breakpoint will typically be
applied only to individual accounts greater than $25 million. We reserve the right to reduce or waive all
or any portion of our fees charged to any client. We believe our fees are competitive with fees charged
by other investment advisers for comparable services. Comparable services may be available, however,
from other sources at a lower fee.

Advisory fees for Standard Clients are typically based upon the following fee schedules, except that a
reduced fee of 0.50% per annum may be charged on any portion of the Account Value invested in
municipal bonds:

Core Equity, Small Cap Growth, and Balanced Portfolios (minimum account size $5 million):
 • 1.25% per annum on the first $10 million or fraction thereof
 • 1.00% per annum on the next $15 million or fraction thereof
 • 0.75% per annum on amounts in excess of $25 million

Core Equity, Small Cap Growth, and Balanced Portfolios for Eleemosynary Accounts (minimum
account size $5 million):
  • 1.00% per annum on the first $10 million or fraction thereof
  • 0.75% per annum on the next $15 million or fraction thereof
  • 0.65% per annum on amounts in excess of $25 million

Strategic Income Portfolios (minimum account size $100 million):
  • 0.75% per annum

Strategic Income Portfolios for Eleemosynary Accounts (minimum account size $100 million):
  • 0.65% per annum

Small Cap Growth Portfolios for large Separately Managed Accounts (minimum account size $25
    million):
 • 0.95% per annum on the first $25 million or fraction thereof
 • 0.85% per annum on the next $25 million or fraction thereof
 • 0.75% per annum on the next $50 million or fraction thereof
 • 0.65% per annum on amounts in excess of $100 million

We reserve the right to charge fees of up to 2.00% on accounts that do not meet the minimum account
size generally required. We also reserve the right to negotiate fee breakpoints, rates and terms different
from those set forth above for very large accounts or under any other circumstances we determine
warrant a non-standard fee. We also reserve the right to charge a distinct fee for financial planning
services, and to waive or reduce this fee for particular clients at our discretion.

No management fee is charged on the portion of a Standard Client’s account that is invested in a mutual
fund for which OCM Inc. or OCM LLC serves as the adviser. We instead receive a management fee as
described in Item 5.2 below.

Investment advisory agreements may generally be terminated by either the Standard Client or OCM LLC
upon 30 days’ prior written notice to the other party; provided, the Standard Client may terminate the
investment advisory contract, without penalty, by written notice to us (a) within five business days after
the date of signing the contract, or (b) within ten days after receipt of notice from us of any amendment
to the fee rate. We reserve the right, at our exclusive discretion, to grant a Standard Client’s request for
termination in less than 30 days.

5.2 – Fees for Mutual Funds

OCM LLC serves as the adviser to three mutual funds: the Osterweis Strategic Income Fund, the
Osterweis Growth & Income Fund, and the Osterweis Opportunity Fund. Each of these funds is an open-
end management investment company registered under the Investment Company Act of 1940, as
amended (“Investment Company Act”). We receive a monthly advisory fee from the Osterweis Strategic
Income Fund equal to 1.00% per year of the average daily net assets up to $250 million; 0.75% for
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Item 7 – Types of Clients

We provide investment management services to individuals, high net worth individuals, corporate
pension and profit-sharing plans, Taft-Hartley plans, charitable institutions, foundations, family offices,
endowments, municipalities, registered mutual funds, trust programs, and other U.S. and international
institutions.

For separately managed accounts, we generally require a client initially to provide and maintain a
$5,000,000 minimum Account Value for new equity, and balanced accounts, and a $100,000,000
minimum Account Value for strategic income accounts. We may waive such requirements based on
special circumstances including, without limitation, high asset growth potential, relationship to existing
accounts or other prospective accounts or a pre-existing relationship with members of our firm.

For investors in the Osterweis Strategic Income Fund, the Osterweis Growth & Income Fund, and the
Osterweis Opportunity Fund, we generally require an initial minimum investment of $5,000 for regular
accounts and a $1,500 minimum initial investment for retirement and tax deferred accounts.

For investors in the Osterweis Fund, our affiliated adviser, OCM Inc., generally requires an initial
minimum investment of $5,000 for regular accounts and a $1,500 minimum initial investment for
retirement and tax deferred accounts.

Each fund reserves the right to waive any investment minimum requirement time to time at its sole
discretion.

This brochure is not an offer for, or a solicitation to buy, any security. With respect to registered
investment companies advised by Osterweis Capital Management, clients and other prospective
investors should carefully review such funds’ prospectuses for more detailed information prior to making
an investment decision.