Adirondack Financial Services Corp

Fees and Compensation
Investment Advisor Representatives conducting business through Adirondack Financial Services do not earn commissions, but
rather a fee for service and must follow a “fiduciary” standard, the highest industry standard. Under the fiduciary standard, an
Investment Advisor Representative must provide advice to their clients ahead of their own interests.

Adirondack Financial Services Standard Fee Schedule:
    • 1% for the first $1,000,000 in assets managed
    • 0.85% for the next $2,000,000 in assets managed
    • 0.65% for the assets managed in excess of $3,000,000

Fees may be deducted from your account or billed on a monthly basis per the client’s preference. Fees may
be negotiable. Fees are paid on a monthly basis.

Clients may also pay a mutual fund and or securities trading fee assessed by Pershing LLC. AFS does not receive
these fees.

Client fees are based on the previous month's assets and charged on the first of the next month. Client fee is not
prepaid, so fees do not need to be refunded if the account closes.

Types of Clients

AFS provides services to Retail Clients, Individuals, Companies, Trusts, Non-Profit entities as well as Company Defined
Benefit Plans. We do not have account minimums that you need to establish or maintain to be a client

Methods of Analysis, Investment Strategies & Risk of Loss
Investing in securities always involves some risk of loss of principal. Historical performance does not guarantee
future results.

The investment policy statement is used to determine asset allocation.

Adirondack Financial Services has a defined investment research process that we follow. Example: When selecting mutual
funds, we use a quantitative and qualitative approach:

    •    Quantitative
           • Uses a mutual fund universe of 27, 336 funds
           • Screening process is used to reduce the number of candidates for the qualitative step
           • Quantitative “screen” has 1623 possible data points to review
           • Screen Includes:
                    • Morningstar Research
                    • Past Performance
                    • Portfolio Statistics ( Sharpe Ratio, Beta, Alpha, R-squared, etc.)
                    • Category / Universe Comparison
                    • Manager Tenure
                    • Fund Size
           • Goal is to reduce the number of funds for initial qualitative screening

    •   Qualitative
           • Factors Examined:
                    • How was performance obtained? (i.e., stock selection, individual position size, sector
                      weighting, trading, etc.)
                    • In-depth review of manager (i.e., tenure, experience, turnover, etc.)
                    • Style Drift
                    • Investment Process
                    • Fit into AFS’s macro-economic outlook
                    • Fund History
                    • Prospectus
           • Goal is to identify and select appropriate investments

The same process is followed in our security selection.

This method of analysis does not guarantee results nor does past performance indicate future gains. It does not contain
significant risks over basic methods of research and analysis. We do not recommend frequent trading or a frequent buy and
sell program . Frequent trading can increase cost and may result in adverse tax consequences which can lower any gains
earned.

AFS does not primarily recommend a particular type of security. We recommend an asset allocation across             multiple
classes. We do not use investments with limited liquidity, or private placements that have higher inherit risk