Saybrook Capital Corp

Fees and Compensation
Investment supervisory services are rendered to clients based on their particular requirements.
For foundations and endowments these would include long-term total return goals and risk
sensitivity, while for individuals, age, income, family situation, and other assets would also be
considered.

Compensation for services is based on a percentage of the assets managed. Fees can vary based
on the type of relationship. In addition, there are certain early accounts that began at a relatively
high level of assets that are given a discount from the original fee schedule. Some negotiation of
fees for larger or non-discretionary accounts is possible. Accounts are billed quarterly at the end
of the quarter based on market values at the time of billing. Bills are sent directly to custodians
for withdrawal from clients’ accounts. Clients receive a report documenting their fee on a
quarterly basis. For accounts established after June 30, 2007, the account fee is as follows:

Saybrook Capital Corporation
ADV Part II - Page 5
December 31, 2025

                 Assets Under Management                      Annual Fee
                 Accounts less than $1 million             1.5% of assets
                 Accounts over $1 million have a graduated fee schedule:
                   First $5 million                       1.25% of assets
                   From $5 to $10 million                 1.00% of assets
                   From $10 to $25 million                0.75% of assets
                   Amounts over $25 million               0.50% of assets

For accounts established between January 1, 1984 and June 30, 2007, the account fee is as
follows:

                Assets Under Management                      Annual Fee
                   Amount less than $1 million            1.50% of assets

                Accounts over $1 million have a graduated fee schedule:

                   Amounts from $1 to $5 million          1.25% of assets
                   Amounts from $5 to $8 million          1.00% of assets
                   Amounts over $8 million                0.75% of assets

For accounts established prior to January 1, 1984, the basic annual fee is:

                   1 ¾% of the first $300,000
                   1 ¼% of the next $200,000
                   0.8% of value greater than $500,000

Whenever Saybrook invests in a mutual fund, clients are paying two advisory fees, an investment
management fee to Saybrook on the assets in the mutual fund, and a management fee to the
mutual fund advisors. Normally, this occurs in Saybrook’s accounts only in the case of money
market funds. Commission to a third-party brokerage firm for security transactions are in
addition to Saybrook’s management fees.

Either the client or Saybrook, upon delivery of written notice to the other party, can terminate the
contract for investment supervisory services. The fee would be paid on a pro rata basis.

Performance-Based Fees and Side-by-Side Management
As stated in Fees and Compensation, Saybrook Capital charges for services based on a
percentage of the assets managed only. No performance-based fees are charged.

Saybrook Capital Corporation
ADV Part II - Page 6
December 31, 2025

Types of Clients

Saybrook Capital provides investment advice to individuals, pension and profit-sharing plans,
trusts and estates and charitable organizations. Saybrook Capital maintains a minimum account
size of $1 million, while occasionally accepting smaller accounts for a higher annual fee.

Methods of Analysis, Investment Strategies and Risk of Loss
Saybrook Capital’s security analysis methods include fundamental, technical, and cyclical
methods, and the main sources of information used to gather investment information includes
financial newspapers and magazines, inspections of corporate activities, research materials
prepared by others, corporate rating services, annual reports, prospectuses, filings with the SEC,
and company press releases. Most clients assign Saybrook Capital full discretion with regard to
which securities are to be bought or sold, and the amount. Saybrook Capital pursues long-term
investment strategies and believes that frequent trading can negatively impact investment
performance.

The first action taken with a new investor is to carefully assess risk and return objectives, as well
as portfolio constraints. Importantly, Saybrook frequently monitors these objectives and
constraints and adjusts the portfolios accordingly.

Investing in securities involves risk of loss and clients should be prepared to bear these losses;
however, investment decisions are carefully made with reasonable basis and representation, with
written records that support this investment process. Investments are always selected with
considerable care, independent professional judgment, and objectivity. Client needs and
suitability are always considered.

     Asset Allocation Strategy

At Saybrook Capital, clients’ assets are not invested in a “model portfolio” or “co-mingled
funds”. Instead, we launch a detailed evaluation process to determine the proper asset allocation.
The blend of bonds, cash equivalents, and a range of different equities will be determined by a
variety of factors, including:

• Investment Objectives                               • Future Cash Flows
• Risk Tolerance                                      • Philanthropic Goals
• Tax Status/Rate                                     • Income Requirements

Saybrook Capital Corporation
ADV Part II - Page 7
December 31, 2025

     Equity Investment Strategy: Undervalued Growth

To reach our investment goals, we follow a two-element strategy:

1) Identify companies with superior growth prospects, which we define as:

• Secular growth, rather than cyclical recovery
• Growth that can be sustained at an above-average rate for at least three to five years
• Expansion that results from quality characteristics such as dominant products, superior
marketing, forward thinking management and the capability to self-finance

2) Invest in such companies when their equities are truly undervalued, as determined by
our strict valuation techniques

     Equity Investment Strategy: Decision Making Process

Every investment decision at Saybrook is made in a context of careful research into a
multiplicity of factors, which fall into three broad categories:

Analysis of the Macro Environment
• Economic: understanding the inter-relationships of world markets
• Political: are government decisions encouraging or discouraging production?
• Sector: detecting shifts in consumer preference, government spending, and capital spending
• Technical: recognizing changes in investor preferences
Company Analysis
• Determine growth prospects through insightful corporate research
• Concentrate on quality companies
• Emphasize accelerating momentum in products, markets, and earnings
• Isolate, analyze, and understand critical variables
Valuation
• Find distortions in market pricing
• Employ stringent relative value criteria
• Maintain buy and sell disciplines

Saybrook Capital Corporation
ADV Part II - Page 8
December 31, 2025

     Equity Investment Strategy: Characteristics of Quality Companies

 Outstanding Management                            Proprietary Products

 • Integrity, accessibility                        • Effective research to maintain
 • Orientation to long-term                          technological lead
   earnings growth without                         • Market franchise
   equity dilution
 • Conservative accounting                         Marketing
 • Recognition of the pervasiveness
   of change                                       • Focus on growing markets
 • Strategic planners                              • Ability to dominate
 • Strong back-up management                       • Strong orientation to
 • Good personnel policies                           customers’ needs
                                                   • Flow of successful new products
 Financial Strength                                • Unit growth in sales

 • High margins                                    Productivity
 • High returns on capital
 • Self-financing                                  • Low labor costs, but well-paid
 • Strong controls                                   employees
 • Returns cash to shareholders                    • Opportunities on learning curve
 • Record of increasing dividends

     Equity Investment Strategy: Managing Risk - Buy Disciplines

Recognize that risk is greatest when agreement is greatest
• The market will do whatever is necessary to prove the majority wrong
• It helps to be a contrarian

Stay focused on disciplines
• Thorough research to find superior growth
• Adhere to valuation standards

Try not to be seduced by “shooting star” themes
• Information technology in the late 1990’s or financial services in the 2000’s
• Capitalize on negative psychology when confident in quality and growth

Diversification
• Diverse blend of asset classes and sectors reduces volatility
• Minimize exposure by limiting new purchases to no more than 5% of the total portfolio

Saybrook Capital Corporation
ADV Part II - Page 9
December 31, 2025
...