Alexander Randolph Advisory Inc

Item 5 – Fees and Compensation

The investment management fees we receive from our clients represent 100% of our firm’s
compensation for providing investment management services. Neither our firm nor any employee or
affiliate of our firm accepts compensation for the sale of securities or other investment products or
asset based sales charges or service fees from the sale of mutual funds.

The annual fees we charge for investment management services provided to each client are based on
the following schedule as a percentage of assets under management:

                        1% of the first $500,000 of assets under management,
                        plus 0.5% of assets under management in excess of $500,000.

Occasionally, clients with large portfolios may be offered a discounted fee equal to 0.5% of all assets
under management.

Investment management fees are charged quarterly in arrears based on each portfolio’s value at the
end of each calendar quarter (i.e. March 31, June 30, September 30 and December 31) and are
deducted from most client portfolios within 60 days of the end of each calendar quarter. Upon
request, our firm will charge investment management fees in advance based on the portfolio value at
the end of the previous calendar quarter. In addition, clients may choose to avoid having their
investment management fees deducted from their portfolio and instead send a check to our firm to
pay their investment management fees.

Clients can terminate our firm’s investment management services at any time by sending a letter to
our firm at our office address via certified U.S. mail, return receipt requested. The termination letter
should be signed by the client and clearly state that the client is terminating their investment
management relationship with our firm either upon our receipt of the letter or at a later date specified
by the client. Shortly after termination of our firm’s services, we will provide the client with a final
invoice for services rendered through the date of termination based on the percentage of days during
the calendar quarter that the client’s portfolio was managed by our firm. For instance, if the
effective date of termination of our firm’s services was 30 days after the end of the previous calendar
quarter and there are 90 days in the current calendar quarter, we will charge one-third of our normal
quarterly fee during the quarter that our firm’s investment management services are terminated. For
clients who pay their quarterly fees in advance, we will refund the unearned portion of the fee by
mailing a refund check to the client’s home address within 30 days of the date of termination of our
firm’s services. In no case does our firm collect fees of more than $1,200 six months in advance of
rendering services.

In addition to investment management fees paid to our firm, client accounts will be charged a
transaction fee of $25 or less for the purchase or sale of some open ended mutual funds by the
broker/dealer or custodian holding their investment account(s). Clients also pay management and
operating expenses charged by the mutual funds and exchange traded funds (ETF’s) held in their
accounts.

The “Brokerage Practices” section beginning on page 10 of this brochure contains detailed
information regarding our firm’s policies and procedures for selecting broker/dealers and custodians
to hold client accounts. The “Methods of Analysis, Investment Strategies Employed & Risk of
Loss” section beginning on page 8 of this brochure contains detailed information about how we
evaluate and select mutual funds to be held in client investment portfolios. As a fundamental
investment policy, our firm only purchases “no-load” or “load waived” mutual funds with reasonable
expenses or exchange traded funds (ETFs) with very low expenses in client portfolios and we place
strong emphasis on minimizing transaction costs and mutual fund operating expenses in selecting
securities to be purchased and held in client investment portfolios.

                        Fees and Compensation Received by Our Firm for
                        Wealth Management & Financial Planning Services

Clients who use our firm’s wealth management and financial planning services are often charged a
retainer fee which is based on the time and resources required to competently service the clients at a
rate of $300-$750 per hour of professional analysis and service rendered.

In addition to ongoing investment management and/or wealth management engagements, our firm
will at times perform a specific one-time service or financial analysis for a set fee. For instance, as a
precursor to providing ongoing investment management or financial advisory services for a client,
we will often prepare a financial plan for the client and charge a one-time fee for such a plan. A
financial plan will often address many aspects of a client's financial affairs, including but not limited
to an analysis of the client's investments, retirement planning, college education funding for the
client's children, estate planning, income and cash flow analysis, and evaluation of the client's life
and disability insurance coverages.

Alternatively, some client's request that a limited financial plan be designed focusing only on a few
aspects of their financial situation. Fees charged by our firm for such one-time service or analysis
are based on the number of hours of professional service or analysis required to provide a competent
evaluation at an hourly rate of $300-$750.

In all cases, fees charged by our firm are discussed and agreed to by each client before such fees are
incurred. In many cases, a written contract is entered into between each client and our firm which
defines the wealth management and financial planning services to be provided and the fee(s) to be
charged for such services. Fees are charged either in advance or in arrears for services rendered. In
...

Item 7 – Types of Clients

Most of our clients are individual investors for whom we manage personal, retirement and/or trust
accounts. A small percentage of our clients (less than 5%) are institutions such as business
sponsored retirement plans and non-profit organizations (e.g. charitable organizations). Although
our firm does not specifically impose a minimum dollar value of assets for opening an account, our
firm's minimum annual fee for new clients is generally $5,000. Occasionally, we will waive this
minimum fee requirement for new clients if our firm’s annual fee for managing their investment
portfolio based on our standard fee schedule is expected to be at least $5,000 within a year or two.