American Alpha Advisors LLC

ITEM 5. FEES AND COMPENSATION
A. Compensation for Advisory Services

AAA’s annual fee for all of its advisory services described above in Item 4.B, follows a tiered
(blended) fee schedule:

                   Assets Under Management                     Incremental Fee Rate
               0               -   1,000,000                          1.00%
               1,000,000       -   2,000,000                          0.80%
               2,000,000       -   10,000,000                         0.70%
               10,000,000      -   20,000,000                         0.60%
               20,000,000      -   50,000,000                         0.50%
               50,000,000      -   100,000,000                        0.40%
               100,000,000     -   200,000,000                        0.30%
               200,000,000 +                                          0.20%

The advisory fee is calculated by multiplying the incremental fee rate for each range of AUM. AAA
bills in arrears and the advisory fee is calculated using the value of the assets on the last business
day of the billing period. Tiered fee rates can be calculated based on household market values at
the discretion of AAA.
AAA generally billed monthly based on the following calculation:
                                       Sample Computation
                                                       %
                                                           ∗

Fees are negotiable and the final fee schedule is attached as Exhibit II of the Investment Advisory
Contract. Clients can terminate the agreement without penalty for a full refund of AAA’s fees
within five business days of signing the Investment Advisory Contract. Thereafter, Clients can
terminate the Investment Advisory Contract with 30 days written notice. AAA believes that its
advisory fees are reasonable, but the AAA’s fees can be more than the cost of purchasing the

same or comparable services through other investment advisors. AAA can, in its sole discretion,
reduce, waive or calculate differently its fee with respect to certain Clients, including employees
or family members.
Strategy Fees
As discussed in Item 4.B, Clients can elect to hire AAA for Investment Management services or
choose to participate in a particular strategy with an associated Strategy Fee. Strategy Fees can
vary, but the maximum combined annual fee a Client will pay for advisory fees and/or Strategy
Fees is 2.00%.

Reporting Services
Clients and AAA can agree on a fee for Reporting Services, separate from the advisory fee set
forth in the above tiered fee schedule. AAA will monitor, oversee and report on external
managers and investments for an agreed upon additional fee as disclosed in the client’s
investment management agreement.
Payment of Fees
AAA deducts advisory fees directly from Client accounts at the end of each billing period. Client
provides written authorization to do so in the Investment Advisory Contract and the custodian
account opening paperwork. A Client can request to be billed or invoiced for advisory fees. If AAA
and Client agree to such an arrangement, AAA will invoice Client at the end of each billing period
using an electronic invoice. If applicable, AAA will invoice Client for fees associated with Reporting
Services, which are separate from the advisory fee.

Other Fees or Expenses
Clients utilizing AAA’s Wrap Fee Program should see the separate Wrap Fee Program Brochure
for additional details regarding third party fees.

All Clients are subject to additional expenses, such as, mutual fund expenses, interest (margin)
expense, wire fees and check fees or other fees that are separate and distinct from the fees and
expenses associated with AAA. Please see Item 12 of this brochure for more details regarding
broker/custodian.
Each Client will be responsible for certain charges imposed by unaffiliated third parties and
incurred in connection with AAA’s provision of the services, including in the course of the
investment of, or arising from the investment or administration of each Client’s assets.
B. Prepayment of Fees

AAA charges advisory fees in arrears. It does not collect fees in advance.
C. Outside Compensation for the Sale of Securities to Clients
Neither AAA nor its supervised persons accept any compensation for the sale of investment
products, including asset-based sales charges or service fees from the sale of mutual funds.

ITEM 7. TYPES OF CLIENTS
AAA offers services for individuals, high net worth individuals, trusts, foundations, families
and/or small businesses in a family office style. There is no minimum account size.