Avity Investment Management Inc

Item	5	–	Fees	and	Compensation

Our	investment	services	are	offered	at	a	percentage	of	assets	under	management.		The
standard	fee	schedule	for	equity	and	balanced	accounts	is	1.0%	per	annum	on	the	first	$2
million,	0.75%	on	the	amount	between	$2	million	and	$5	million,	0.60%	on	the	amount
between	$5	million	and	$10	million,	and	0.50%	on	the	amount	above	$10	million.		These
rates	are	often	negotiated,	particularly	for	large	accounts.		Our	standard	fee	schedule	for
fixed	income	only	accounts	is	0.60%	on	the	first	$2	million,	0.50%	on	the	amount	between

$2	million,	and	$5	million,	0.40%	on	the	amount	between	$5	million	and	$10	million,	and
0.35%	on	the	amount	above	$10	million.

Fees	are	billed	quarterly.		In	most	cases,	fees	are	debited	to	the	clients'	custodian	accounts
in	line	with	standing	authorizations.		Some	accounts	are	billed	at	the	beginning	of	the
quarter	but	most	are	billed	after	the	completion	of	the	quarter.		Our	contract	can	be
cancelled	at	any	time.		Unearned	fees	are	promptly	refunded	in	the	event	that	a	client	or	we
end	a	relationship,	no	matter	what	the	reason.		Any	earned,	unpaid	fees	are	due	and
payable	at	the	end	of	a	relationship.	Accounts	initiated	or	terminated	during	a	calendar
quarter	will	be	charged	a	prorated	fee.		Management	fees	may	be	prorated	for	capital
contribution	and	withdrawal	made	during	the	applicable	calendar	quarter	(with	the
exception	of	de	minimis	contributions	and	withdrawals).

Investment	management	fees	are	our	only	source	of	compensation,	but	clients	may	incur
additional	costs.		Avity’s	fees	are	exclusive	of	brokerage	commissions,	transaction	fees,	and
other	related	costs	and	expenses	which	shall	be	incurred	by	the	client.	Clients	may	incur
certain	charges	imposed	by	custodians,	brokers	and	other	third	parties	such	as	deferred
sales	charges,	wire	transfer	and	electronic	fund	fees,	and	other	fees	and	taxes	on	brokerage
accounts	and	securities	transactions.	Mutual	funds	and	exchange	traded	funds	also	charge
internal	management	fees,	which	are	disclosed	in	a	fund’s	prospectus.		Such	charges,	fees
and	commissions	are	exclusive	of	and	in	addition	to	Avity’s	fee,	and	Avity	does	not	receive
any	portion	of	these	commissions,	fees,	and	costs.

Item	12	further	describes	the	factors	that	Avity	considers	in	selecting	or	recommending
broker-dealers	for	client	transactions	and	determining	the	reasonableness	of	their
compensation	(e.g.,	commissions).	All	securities	held	in	accounts	managed	by	Avity	will	be
independently	valued	by	Reuters.	The	Advisor	will	conduct	periodic	reviews	of	Reuters
valuation	within	its	Indata	software	to	ensure	accurate	billing.

Item	7	–	Types	of	Clients

Avity	provides	portfolio	management	services	to	individuals,	trusts,	estates,	charitable
organizations,	pension	funds,	profit-sharing	plans	and	corporations.