Slocum Gordon & Co LLP

Item 5: Fees and Compensation

INDIVIDUAL PORTFOLIO MANAGEMENT FEES

The annualized fee for Portfolio Management Services is a blended fee and based on a percentage of assets under
management in your account. Our annual portfolio management tiered fee schedule is indicated below:

                                  Assets Under Management                        Annual Fee

                     $0 - $5,000,000                                                 1.0%

                     Above $5,000,001                                               0.50%

Our portfolio management fee is billed and payable monthly in arrears based on the month-end value as
provided by the custodian. Fees will be deducted monthly directly from your account(s) based on the client’s
authorization to the custodian. When applicable, assets will be sold to pay management fees when insufficient
cash levels are maintained.

If the investment management agreement is executed at any time other than on the first day of the calendar
month, our fees will apply on a pro-rata basis, which means that the management fee is payable in proportion to
the number of days in the month for which you are a client. For distributions above $10,000 withdrawn after the
15th of the month, you will be charged a pro-rata management fee for the number of days of service rendered
during the prior month.

In limited circumstances, SGCo may charge clients a flat monthly portfolio management fee. This fee will be
collected in arrears and directly deducted from your account based on the client’s authorization to the
custodian.

Although SGCo has established the aforementioned fee schedule(s), we retain the discretion to negotiate
alternative fees on a client-by-client basis. Client facts, circumstances and needs are considered in
determining the fee schedule. These include the complexity of the client, assets to be placed under
management, anticipated future additional assets, related accounts, portfolio style, account composition,
reports, among other factors. Discounts, which are not generally available to our advisory clients, may be
offered to employees and family members associated with our firm.

Your specific annual fee schedule will be identified in your Investment Management Agreement.

Additional Fees and Expenses: Our portfolio management fee does not include brokerage commissions,
transaction fees, or other related costs and expenses that are incurred by you. You may incur certain
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 transfer and electronic fund
fees, and other fees and taxes on brokerage accounts and securities transactions. Mutual funds and
exchange traded funds also charge internal management fees, which are disclosed in a fund’s prospectus.
These charges, fees, and commissions are exclusive of and in addition to our fee and we will not receive any
portion of these charges, fees, or commissions.

Additional Services: In certain instances, Clients may elect a partner of SGCo to serve as trustee on an
account managed by the Firm. Based on the nature of this trustee relationship SGCo will be deemed to have
custody on those assets and would be required to have a surprise audit. Clients utilizing this service will be
assessed an additional fee to offset the cost of the audit. This additional fee will be pro-rated based on your
account size relative to the total assets the firm has that are subject to the custody audit. The fee will be
directly debited from your account on a monthly basis.

Advisory Fees in General: Clients should note that similar advisory services may (or may not) be available from
other registered (or unregistered) investment advisers for similar or lower fees.

Limited Prepayment of Fees: Under no circumstances do we require or solicit payment of fees in excess of
$1200 more than six months in advance of services rendered.

Termination of the Advisory Relationship: You may terminate any service for any reason within the first five (5)
business days after signing the contract without any cost or penalty. Thereafter, you may terminate the portfolio
management services upon 10-day written notice. You will incur a pro rata charge for services rendered prior to
the termination of the investment advisory agreement, which means you will incur advisory fees only in
proportion to the number of days in the month for which you are a client. If you have pre-paid advisory fees that
we have not yet earned, you will receive a prorated refund of those fees.

Item 7: Types of Clients
SGCo provides advisory services to Individuals, high net worth individuals, Pension and profit-sharing plans,
charitable organizations, corporations, and state / municipal government entities. We do not require a minimum
account size.