Aldemar Research Corporation

Item 5: Fees and Compensation

A. Fee Schedule

Asset-Based Fees for Portfolio Management

        Total Assets Under Management          Annual Fee

        $25,000 - $1,000,000                   1.50%

        $1,000,001 - $5,000,000                1.00%

        $5,000,001 - And Up                    0.75%

These fees are generally negotiable and the final fee schedule is attached as Exhibit II of
the Investment Advisory Contract. Clients may terminate the agreement without penalty
for a full refund of ARC's fees within five business days of signing the Investment
Advisory Contract. Thereafter, clients may terminate the Investment Advisory Contract
immediately upon written notice.

ARC bills based on the balance on the first day of the billing period.

Financial Planning Fees

Clients may terminate the agreement without penalty for a full refund of ARC's fees
within five business days of signing the Financial Planning Agreement. Thereafter, clients
may terminate the Financial Planning Agreement generally upon written notice.

Fixed Fees

The negotiated fixed rate for creating client financial plans is between $50 and $1,000. Fees
are charged in arrears upon completion.

Hourly Fees

The negotiated hourly fee for these services is between $50 and $150. Fees are charged in
arrears upon completion.

B. Payment of Fees

Payment of Asset-Based Portfolio Management Fees

Asset-based portfolio management fees are withdrawn directly from the client's accounts
with client's written authorization on a quarterly basis, or may be invoiced and billed
directly to the client on a quarterly basis. Clients may select the method in which they are
billed. Fees are paid in advance.

Payment of Financial Planning Fees

Financial planning fees are paid via check.

Fixed financial planning fees are paid in arrears upon completion.

Hourly financial planning fees are paid in arrears upon completion.

C. Client Responsibility For Third Party Fees

Clients are responsible for the payment of all third party fees (i.e., custodian fees,
commissions, brokerage fees, mutual fund fees, transaction fees, etc.). Those fees are
separate and distinct from the fees and expenses charged by ARC. Please see Item 12 of
this brochure regarding broker-dealer/custodian.

D. Prepayment of Fees

ARC collects certain fees in advance and certain fees in arrears, as indicated above.
Refunds for fees paid in advance will be returned within fourteen days to the client via
check, or return deposit back into the client’s account.

For all asset-based fees paid in advance, the fee refunded will be equal to the balance of
the fees collected in advance minus the daily rate* times the number of days elapsed in
the billing period up to and including the day of termination. (*The daily rate is calculated
by dividing the annual asset-based fee rate by 365.)

E. Outside Compensation For the Sale of Securities to Clients

ARC or its supervised persons may accept compensation for the sale of securities or other
investment products, including asset-based sales charges or services frees from the sale of
mutual funds.

Andrew Lewis Groat is a registered representative of a broker-dealer and an insurance
agent and in these roles, accepts compensation for the sale of securities and other products
to ARC clients.

       1. This is a Conflict of Interest

           Supervised persons may accept compensation for the sale of securities or other
           investment products, including asset based sales charges or service fees from the sale
           of mutual funds to ARC's clients. This presents a conflict of interest and gives the
           supervised person an incentive to recommend products based on the compensation
           received rather than on the client’s needs. When recommending the sale of securities
           or investment products for which the supervised persons receives compensation, ARC
           will document the conflict of interest in the client file and inform the client of the
           conflict of interest.

       2. Clients Have the Option to Purchase Recommended Products From Other
          Brokers

           Clients always have the option to purchase ARC recommended products through
           other brokers or agents that are not affiliated with ARC.

       3. Commissions are not ARC's primary source of compensation for advisory
          services

           Commissions are not ARC’s primary source of compensation for advisory services.

       4. Advisory Fees in Addition to Commissions or Markups

           Advisory fees that are charged to clients are reduced to offset the commissions or
           markups on securities or investment products recommended to clients.

Item 7: Types of Clients

ARC generally provides advisory services to the following types of clients:

           ❖ Individuals
           ❖ High-Net-Worth Individuals

Minimum Account Size

There is no account minimum for any of ARC’s services.