Arroyo Investment Group LLC

Fees and Compensation
   Description
      Arroyo Investment Group, LLC bases its fees on a percentage of assets
      under management.
       All fees payable to Arroyo Investment Group, LLC are paid in arrears.
       The Annual Fee Schedule is:
       Up to $250,000                  1.00%
       $250,001 - $1,000,000           0.80%
       $1,000.001 and $5,000,000       0.65%
       Over $5,000,001                 0.50%
       However, fees are negotiable.

   Fee Billing
       Investment management fees are billed quarterly, in arrears, meaning that we
       invoice you after the three-month billing period has ended. Payment in full is
       expected upon invoice presentation. Fees are usually deducted from a
       designated client account to facilitate billing. The client must consent in
       advance to direct debiting of their investment account. In some instances, and
       for those clients with accounts held with custodians other than Charles
       Schwab, the client will receive a bill from Arroyo Investment Group and remit
       payment.

   Other Fees
       Custodians may charge transaction fees on purchases or sales of certain
       mutual funds. These transaction charges are usually small and incidental to
       the purchase or sale of a security. The selection of the security is more
       important than the nominal fee that the custodian charges to buy or sell the
       security. In some instances, the custodian will charge an asset-based pricing
       fee billed monthly in order to allow the purchase of a lower expense ratio
       share class.

                            Arroyo Investment Group, LLC

       Arroyo Investment Group, LLC, in its sole discretion, may waive its minimum
       fee and/or charge a lesser investment advisory fee based upon certain criteria
       (e.g., historical relationship, type of assets, anticipated future earning
       capacity, anticipated future additional assets, dollar amounts of assets to be
       managed, related accounts, account composition, negotiations with clients,
       etc.).

   Expense Ratios
      Mutual funds generally charge a management fee for their services as
      investment managers. The management fee is called an expense ratio. For
      example, an expense ratio of 0.50 means that the mutual fund company
      charges 0.5% for their services. These fees are in addition to the fees paid
      by you to Arroyo Investment Group, LLC.
       Performance figures quoted by mutual fund companies in various publications
       are after their fees have been deducted.

   Past Due Accounts and Termination of Agreement
       Arroyo Investment Group, LLC reserves the right to stop work on any account
       that is more than 60 days overdue. In addition, Arroyo Investment Group, LLC
       reserves the right to terminate any financial planning engagement where a
       client has willfully concealed or has refused to provide pertinent information
       about financial situations when necessary and appropriate, in Arroyo
       Investment Group, LLC’s judgment, to providing proper financial advice.

Types of Clients
   Description
      Arroyo Investment Group, LLC generally provides investment advice to
      individuals, trusts, estates, charitable organizations, corporations, and
      business entities.
       Client relationships vary in scope and length of service.

                            Arroyo Investment Group, LLC

   Account Minimums
      The minimum account size is $500,000 of assets under management.
      However, this is negotiable and can vary based upon other criteria.
       Arroyo Investment Group, LLC has the discretion to waive the account
       minimum. Accounts less than the minimum may be set up when the client
       and the advisor anticipate the client will add additional funds to the accounts.
       Other exceptions will apply to employees of Arroyo Investment Group, LLC
       and their relatives, or relatives of existing clients.

Methods of Analysis, Investment Strategies and Risk of Loss