American Investment Advisors Inc

ITEM 5 - FEES AND COMPENSATION

AIAI fees for its full and limited management services are specified below.
Fee schedule for all management services:
                        Market Value of Assets in        Annual Fee       Quarterly
                        Account                          Percentage         Fee
                           $0-$100,000                     1.00%            .250%
                           Next $400,000                   0.80%            .200%
                           Next $500,000                   0.50%            .125%
                           Over $1,000,000                 0.40%            .100%

All asset-based fee calculations are based upon the total market value of assets in a client's account on the
last day of the previous three month billing period and are payable after services are provided. The initial
fee due AIAI is equal to the pro-rated fee due at the end of the calendar quarter in which the agreement is
signed. Thereafter, fees are calculated for three-month periods. AIAI may, in its sole discretion, combine
the value of related accounts for fee calculation purposes. In the event management services are terminated
prior to the last day of a quarter, which can occur upon 30 days written notice from either AIAI or a client
to the other, the client is obligated to pay AIAI all fees earned to the date of termination. Fees are also due
for assets withdrawn during a billing period. If the client does not receive a copy of this ADV Part 2A
brochure at least 48 hours prior to signing the advisory agreement, the client may terminate the agreement
within five (5) business days of signing the agreement without penalty.
Clients authorize AIAI to withdraw fees due AIAI directly from their managed account.
Prospective clients should be aware that in addition to AIAI's program fee each mutual fund in which a
client's assets may be invested also pays its own advisory fees and other expenses which already have been
deducted from the fund's reported performance and, depending on the fund, a client may be able to invest
directly in the shares issued by a mutual fund with or without incurring any sales or advisory management
fees. In addition, there are tax effects pertaining to fund share redemptions made by AIAI on behalf of
clients. Redemptions are taxable events which may accelerate the recognition of capital gains, and frequent
redemptions may result in short term, rather than long term, capital gains.
Fees for managed services may be negotiated in isolated instances, and thus vary from client to client for
similar services. AIAI may amend its fee upon advance written notice to the client.

ITEM 7 - TYPES OF CLIENTS/MINIMUM ACCOUNT SIZE

AIAI makes its advisory services available to a wide variety of clients including, but not limited to,
individuals, pension and profit sharing plans, trusts, estates, charitable organizations, corporations and other
business entities.
AIAI does not have account size minimums, but may charge clients a minimum of $1,000 per year (payable
quarterly) for its services regardless of how much time during any year services are actually provided.