Auerbach Investment Services LLC

Item 5 Fees and Compensation

Fees for Separate Accounts
Pursuant to an investment advisory contract signed by each client, the client will pay AIS an
annual management fee, payable quarterly in arrears, based on the value of portfolio assets of
the account on the last business day of the quarter. New account fees will be prorated from the
inception of the account to the end of the first quarter.

Our standard fee schedule for separately managed investment advisory services is determined
as a percentage of assets under management and is calculated as follows:
Assets Under Management           Management Fee
$0 - $750,000                    1.50%
$750,001 - $3,000,000            1.35%
$3,000,001 - $5,000,000          1.25%
$5,000,001 - $7,500,000          1.15%
$7,500,001 - $10,000,000         1.10%
$10,000,001+                     1.07%

These fees may be negotiated by AIS at its sole discretion. The client will give written
authorization permitting the AIS to be paid directly from their account held by the custodian. The
custodian will send a statement at least quarterly to the client and the Advisor will also send an
invoice to the client outlining the fee calculation and time period covered, and the amount
withdrawn from the client account each time the fee deduction invoice is sent to the qualified
custodian.

Fees for Pension Consulting
AIS charges consulting fees of between .2% to 1.0% depending upon the size and complexity
of the plan and required service to be rendered. Subscription services are not available in the
State of Alabama.

Investment management fees are collected quarterly in arrears by directly debiting the client's
account. While it is our general policy to charge the stated fees above, your fees may be subject
to negotiation or modification depending upon the nature of the services offered or your
particular circumstances.

Unless otherwise arranged, we bill in arrears based upon the value of the assets in your
account(s) on the last business day of the quarter as our agreement specifies.

Fees Due Upon Termination
Either party may terminate the investment management agreement for any reason upon 30-
days' written notice to the other which will be effective upon receipt. You will incur a pro rata
charge for services rendered until the termination of the investment management agreement.
This means you will incur advisory fees only in proportion to the number of days in the billing
period during which you remain a client. Unless you notify us otherwise in writing, we will cease
to open new positions for the account as of notification to terminate date. There is no assurance
the account will retain its value from the notification date to termination date to the actual
withdrawal date.

Notwithstanding the foregoing, when a copy of this Brochure is not provided to the client at least
48 hours prior to the execution of the investment advisory agreement, the client has five
(5) business days in which to cancel the agreement without charge or penalty.

Additional Fees and Expenses
You may also incur some or all of the following fees and/or expenses. You or your account pay
these charges to third parties and they are not shared by us. Some of these fees are charged
regardless of whether or not there is activity in your account(s). These expenses may be
imposed at the fund level, the subadvisory level, and/or the broker-dealer/custodian level and
usually include line items such as:

    • Advisory fees and administrative fees charged by Mutual Funds (MFs), Exchange Traded
      Funds (ETFs), Hedge Funds, or other commingled products, if any are used for your
      account;
    •   Brokerage commissions;
    •   Transaction fees;
    •   Exchange fees;
    •   United States Securities and Exchange Commission and Options Clearing Corporation
        fees;
    •   Margin Interest, including "hard to borrow" charges
    •   Custodian and/or Safekeeping Fees;
    •   Deferred sales charges (on e.g. MFs or annuities);
    •   Odd-Lot differentials on certain stock and bond transactions;
    •   Transfer taxes;

    • Wire and/or ACH transfer and other electronic fund processing fees;
    • Commissions, spreads, or mark-ups/mark-downs on security transactions.

Broker-dealers or custodians may charge your account transaction fees based upon the trading
and/or clearing services they provide. The charges and fees may be either explicit, hard dollar
levies or implicit, soft dollar levies such as price and volatility spreads. We do not share in any
portion of the brokerage fees/transaction charges imposed by broker-dealers or custodians.

To understand fully the total cost you will incur for investing your funds, you should review all
the fees charged by mutual funds, exchange traded funds, hedge funds, or other commingled
products, brokerages, banks, trust companies and others in addition to the fees you pay AIS.
For information on our brokerage practices, please refer to the "Brokerage Practices" section of
this Disclosure Brochure.

Performance Fees

For Qualified Clients only, AIS may charge a performance fee of 50% of all net gains in the
account following the first 10% of returns on the account. That is, Qualified Clients may be
charged a 50% performance fee on returns in excess of the first 10% net return. By way of
example, if a Qualified Client's account has $1 million in principal on January 1, and the value
of that account increases by $110,000 on December 31 of the same year, net of fees, costs and
subsequent deposits of capital, AIS's performance fee will be $5,000 (50% of net appreciation
over 10%). Performance fees may be negotiated with each Qualified Client and terms may vary.

Item 7 Types of Clients

We provide our services to a number of Clients:

    • Individuals, including High Net Worth Individuals
    • Corporations or other business entities
    • Pension/profit sharing plans

The Advisor’s cumulative minimum account requirement for opening and maintaining an
account is $1 million. However, the Advisor may at its sole discretion, accept accounts with a
lower value.