Alexander Investment Services Co

Fees and Compensation
   Description
       The Advisor typically bases its advisory fees on a percentage of assets under
       management (AUM). Hourly analysis and audit fees as well as retirement
       plan administration fees may be billed separately under different agreements.
       The level of account responsibility assumed by the Advisor will also be
       considered in setting fees. For example, whether the Advisor serves as a
       3(21) or a 3(28) fiduciary under ERISA definitions for a retirement plan.
       Some Investment Advisory Services Agreements and Retainer Agreements
       may be priced based on the complexity of anticipated work demands

                             Alexander Investment Services

    especially when asset management may not be the most significant part of
    the client relationship.

Advisory Fees by Account Type
•   Declining-Fee Breakpoint Account
    Managed by AIS through Charles Schwab & Company as custodian, clearing
    agent and bookkeeper under an Investment Advisory Services Agreement,
    this type of account allows clients to hold and trade specific asset types,
    classes and economic sectors within their portfolios. These accounts may
    also be used to transfer assets to the Advisor in order to maintain assets
    “under one roof” for convenience and investment flexibility. Finally, this type
    of account may be used to avoid mutual fund commissions and marketing
    and distribution service (12b-1) fees when it is determined through client
    consultation that expense ratios and other fees may be reduced.

    Non-breakpoint accounts are also offered using Class F-2 mutual fund shares
    through Capital Group (dba The American Funds) as an altermative to
    traditional Class A shares --- that typically have both initial sales charges and
    marketing and distribution service (12b-1) fees --- in favor of a fee structure
    based on the value of assets under management. The fee schedule for such
    accounts will be detailed in an Investment Advisory Services Agreement and
    may differ from the fee schedule for accounts held at Charles Schwab &
    Company.

    Fee Schedule Example
    All Investment Advisory Service Agreements are negotiated between the
    individual Investment Adviser Representative being engaged and their clients
    subject to the company’s review and approval.

    The actual fee schedule to be utilized will be disclosed within the Investment
    Advisory Services Agreement as Exhibit C.

    The sample fee schedule that follows is presented only for the purpose of
    illustrating how a fee schedule is typically structured. The breakpoints (tiers)
    shown in the example as well as the fees may vary for each IAR. However, in
    no cases will the maximum fee charged to a client at any level exceed 0.80%
    (8/10 of 1%).

                           Alexander Investment Services

       Assets Under       Annual
       Management          Fee          Fee Debited Quarterly Per Account
       > $0               0.78%         0.1950% or $1.95 per $1,000 managed
       > $500,000         0.58%         0.1450% or $1.45 per $1,000 managed
       > $1,000,000       0.38%         0.0950% or $0.95 per $1,000 managed
       > $5,000,000       0.33%         0.0825% or $0.83 per $1,000 managed
       > $7,500,000       0.28%         0.0700% or $0.70 per $1,000 managed
       > $15,000,000      0.23%         0.0575% or $0.58 per $1,000 managed

•   Scaled-Fee Account
    Managed by AIS through Charles Schwab & Company as custodian, clearing
    agent, and bookkeeper under an Investment Advisory Services Agreement,
    this type of account is utilized for clients that may require frequent account
    review, continual reallocation of assets, more concentration in terms of
    personal contact or other services, and/or a broader variety of investment
    products and sophistication in accomplishing investment goals. The Adviser
    will negotiate a fee arrangement that takes into consideration the types and
    number of assets managed as well as the customized support demands of
    the client. The actual fee schedule to be utilized must be disclosed within the
    Investment Advisory Services Agreement and is subject to company review
    and approval.

    Fee Schedule Example
    Fees for Scaled-Fee Accounts are negotiated with clients on an individual
    basis and are not linked to the value of assets under management.

•   Independent Account
    Managed by the client through either Charles Schwab & Company as
    custodian, clearing agent, and bookkeeper or through an outside bank,
    broker-dealer or adviser selected by the client but still reported by AIS
    through its Group Reports system, this type of account is made available to
    clients who wish to independently manage a portion of their assets without
    the advice of the Advisor. Such accounts are made available only to clients
    who maintain substantial advisory or brokerage account balances with the
    Advisor. An annual bookkeeping fee may be assessed for administrative
    and reporting services. This bookkeeping fee may be either a flat fee not
    exceeding $125 or a percentage of AUM not exceeding 0.10% (1/10 of 1%)
    as agreed to by the client and their Adviser.

    Fee Schedule Example
    A $125 flat fee is debited annually in January from such a client account held
    at Schwab or invoiced to the client if such an account is held elsewhere.

                          Alexander Investment Services

Fee Calculation & Account Debiting
    Advisory Account fees may be calculated on either a monthly or quarterly
    basis depending on the specific investment and where the investment is
    placed. Account fees calculated for a forward calendar quarter are debited
    from the Customer’s account based on the net asset value on the last trading
    day of the prior quarter with no adjustment or reimbursement for market
...

Types of Clients
   Description
       The Advisor generally provides investment advice to individuals, pension and
       profit sharing plans, trusts, estates, charitable organizations, corporations and
       professional business entities.
        Client relationships may vary in scope of engagement involving the duration
        and type of services.

   Account Minimums
       There is no minimum account size or fee for assets under management.

Methods of Analysis, Investment Strategies and Risk of Loss