Andrew Hill Investment Advisors Inc

Item 5 Fees and Compensation
Asset Management Services
Our fee for asset management services is based on a percentage of your assets we manage and is set
forth in the following blended tiered-fee schedule:

Assets Under Management                                   Annual Fee*
$0 to $2,000,000                                            1.00%
$2,000,001 to $4,000,000                                    0.80%
$4,000,000,001 to $10,000,000                               0.60%
$10,000,001 and over                                        0.50%

*Fees may be waived or offered at a discount to charities and/or non-profit organizations at our
discretion. Our asset management fee is negotiable subject to a $3,500 minimum annual fee.
**For example, a portfolio value of $3,500,000 in portfolio assets would be billed as follows: the first
$2,000,000 will be billed at an annual rate of 1.00%; and the next $1,500,000 would be billed at 0.80%,
subject to negotiation.
***Fees may be waived or offered at a discounted rate of 0.35% to clients, including charities and/or non-
profit organizations at our discretion.

Our annual asset management fee is billed and payable quarterly in advance based on the value of your
account on the last day of the previous quarter.

If the asset management agreement is executed at any time other than the first day of a calendar quarter,
our fees will apply on a pro rata basis, which means that the advisory fee is payable in proportion to the
number of days in the quarter for which you are a client. Our advisory fee is negotiable, depending on
individual client circumstances.

At our discretion, we will combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values will typically increase the asset total, which could result in you paying a reduced advisory
fee based on the available breakpoints in our fee schedule stated above.

Extraordinary Services
We charge an additional fee for extraordinary services that require significant time or resources, such
as estate settlement assistance, portfolio lending arrangements, production of documents in connection
with legal or IRS matters, or other services outside the scope of our asset management services. Before
performing such services, we will discuss the circumstances and anticipated fees with the client and
obtain the client’s approval. Approved services will be billed and invoiced at an hourly rate of $250 or a
negotiated fixed fee.

We will deduct our fee directly from your account through the qualified custodian holding your funds and
securities. We will deduct our advisory fee only when you have given our firm written authorization
permitting the fees to be paid directly from your account. Further, the qualified custodian will deliver an

account statement to you at least quarterly. These account statements will show all disbursements from
your account, and you should review all statements for accuracy.

For assets held at a custodian that is not directly accessible by our firm ("Held Away Accounts"). We
may, but are not required to, manage these Held Away Accounts using the Pontera Order Management
System ("Pontera") that allows our firm to view and manage assets. Our annual fee for asset
management services for held away accounts is equal to 1.25% of the market value of your assets
under our management. Our annual fee for asset management services is negotiable, depending on
individual client circumstances.

Our advisory fees will not be deducted directly from the accounts managed through the Pontera Order
Management System. We will send you an invoice showing the amount of the fee, the value of the assets
on which the fee is based, the time period covered by the fee, and the specific manner in which the fee
was calculated for held away accounts managed through the Pontera Order Management System.
Clients will have the option of paying the invoice by giving written authorization to deduct the fee from a
brokerage account managed by our firm, in which case, the advisory fee would be deducted from the
brokerage account each quarter, or the client may pay the invoice with a bank account. Further, the
qualified custodian will deliver an account statement to you at least quarterly. These account statements
will show all disbursements from your account. You should review all statements and invoices for
accuracy.

In the event there are insufficient funds in the brokerage account that is assigned to pay the advisory
fees for held away accounts or deducting fees would be prohibited by applicable law, you will be
invoiced. Invoices must be paid within thirty (30) days of receipt and will bear interest after it becomes
due and payable and shall continue to accrue interest until payment is made at a rate equal to the lesser
of either (a) two percent (2%) above the prime rate as reported by Federal Reserve Bank of New York,
located in New York, New York, as of the date such payment was due and payable, or (b) the maximum
rate permitted by applicable law.

You will not pay our firm a higher advisory fee other then what is listed above due to the use of Pontera.
We pay 0.25% from our advisory fee of 1.25% to Pontera.

You can terminate the asset management agreement upon 10-days' written notice to our firm. You will
incur a pro rata charge for services rendered prior to the termination of the asset management
agreement, which means you will incur advisory fees only in proportion to the number of days in the
quarter for which you are a client. If you have pre-paid advisory fees that we have not yet earned, you
will receive a prorated refund of those fees. In instances where a termination notice is given within the
first 12-months of the engagement, the client remains subject to the $3,500 minimum annual fee.
...

Item 7 Types of Clients
We offer investment advisory services to individuals, pension and profit sharing plans, trusts, estates,
charitable organizations, corporations, foreign entities and individuals, and other business entities.

Additionally, we offer asset management and broad based financial planning services to captive
insurance companies and the individual owners. Our services are often based upon the information
that is provided to us by third parties, which usually includes insurance consultants, independent
reinsurance firm, and possibly insurance agents. In some cases, our services are limited to asset
management. Therefore, these clients may or may not receive the same type of services as provided
to other clients.

In general, we require a minimum of $3,500 annual fee for asset managed accounts. At our discretion,
we may waive or lower this minimum fee requirement. For example, we may waive the minimum if you
appear to have significant potential for increasing your assets under our management. We may also
combine account values for you and your minor children, joint accounts with your spouse, and other
types of related accounts to meet the stated minimum.

The above minimum annual fee of $3,500 will also be required for where we may leverage an Order
Management System through Pontera. As stated above, we may waive or lower this minimum fee
requirement if you appear to have significant potential for increasing your assets under our management.