Capital Investment Advisory Services LLC

ITEM 5 – FEES AND COMPENSATION

5.A.       Adviser Compensation

Fee Schedules

CIAS’s fees are described generally below and detailed in each client’s advisory agreement or applicable account.

Portfolio Management and Advisory Services

       Separately Managed Accounts
       CIAS's basic fee schedule for portfolio management and advisory services is typically 2% annually. This fee is
       calculated as a percentage of assets under management and represents the maximum fee that could be assessed.
       Notwithstanding the foregoing, CIAS reserves the right, in its sole discretion, to reduce advisory fees for certain
       accounts based on the client’s particular needs, as well as overall financial condition, goals, risk tolerance, and other
       factors unique to the client’s particular circumstances.

       Fee schedules for employee benefit plans subject to the Employee Retirement Income Security Act of 1974 (ERISA)
       may be negotiated with the Plan Administrator and set at a flat dollar amount per year. This flat fee may be based
       on the requested services, size of the plan, provisions in the Investment Policy Statement, number of employees,
       etc. However, this flat fee would not exceed 2% annually of the plan assets.

       Sub-Advised / Dual Contract Accounts
       Fee schedules for clients participating in sub-advisory or dual contract programs may be separately negotiated with
       the relevant client or intermediary. Such fee schedules are often, but not necessarily, based on the basic annual fee
       schedule for separate account clients, detailed above; 2% annually (maximum), which may be negotiable,
       depending on the factors noted. For instance, the basic (initial) rate may be lower than that applied to separate
       account client accounts and one or more breakpoints may not apply. As a result, lack of, or differing, breakpoints
       may result in sub-advisory or dual contract clients paying more or less than a separate account client.

       Other Third-Party Management Services
       Fee schedules for clients participating in Turnkey Asset Management Platforms (TAMP) are clearly indicated on the
       account documentation of the TAMP provider. The TAMP provider may or may not charge a fee, depending on the
       program type. However, in most cases, the fee schedules are negotiated and agreed upon by the client and adviser.
       Additional transactional costs and/or custodial costs may be charged by the clearing/custodial firm/TAMP
       provider, in addition to the negotiated advisory fees. However, in no instance should the total combined advisory
       fee exceed 2%.

Portfolio Review Services

       Portfolio Review Services are billed at a mutually agreed upon rate using one of four options:
             -   Fee basis (min $500 - max $2,500)
             - Hourly basis (hourly fee not to exceed $250/hour)
             - Commission basis (not to exceed 2%)
             - Other Fee arrangement

       Clients select the option, including the respective, agreed-upon rate, when executing an advisory agreement with
       CIAS. Fees are payable upon completion of the work and are negotiable.

       Capital Investment Advisory Services, LLC * 100 E. Six Forks Rd, Suite 200 * Raleigh NC 27609 * 919-831-2370

Financial Planning Services

       Financial Planning Services are billed at a mutually agreed-upon rate, using one of two options:

        - Fee basis (min $500 - max $2,500)
        - Hourly basis (hourly fee not to exceed $250.00/hour)

       Clients select the option. including the respective, agreed-upon rate, when executing an advisory agreement with
       CIAS. These fees are payable upon completion of the work and are negotiable.

5.B.     Direct Billing of Advisory Fees

Portfolio Management and Advisory Services

Investment advisory fees are generally billed in advance, either on a monthly or quarterly basis, in accordance with the
stated fee schedule provided in the Investment Advisory Agreement. Fees are typically calculated, based upon the fair
market value of the client’s assets under management, as of the end of the previous billing period. Advisory fees, billed
on a quarterly basis, will also be adjusted for the value of inflows and outflows of more than 5% of the fair market value
of the account during the previous quarter. Certain accounts may have other calculation and/or billing cycles. In some
instances, fees may be calculated by a third-party and forwarded to CIAS. Once received, the fees are reconciled by CIAS,
to the client account, for accuracy.

We request, with appropriate authorization, that advisory fees be paid via our firm invoicing the custodian and the
custodian debiting the client’s accounts and remitting such fees to our firm; however, we do permit payments by check.
Any advisory fees directly deducted from the account will be clearly indicated on the client’s statement provided by the
custodian. A client may also elect to have fees for more than one advisory account deducted from a single account.

Fees will be due and payable upon receipt of such invoices. In the event that an account becomes more than ninety (90)
days delinquent, CIAS may, at its option, debit the client’s account in the amount of fees then due and owing and/or
terminate the account relationship.

In either the case of assets held with insurance companies in variable annuity contracts, or accounts held by a 401(k)
provider, a client may also be offered investment advisory services through a third-party money manager on a fully-
disclosed basis. If a client elects to utilize the services of the third-party asset management firm, they will pay a separate
fee to the manager which may, in turn, pay CIAS a portion of the fees collected from the client.

Hourly or fixed fees for Portfolio Review Services or Financial Planning Services are due upon completion of the work.

5.C. Other Non-Advisory Fees
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ITEM 7 – TYPES OF CLIENTS

CIAS provides portfolio management services to individuals, corporations, pension and profit-sharing plans, trusts,
estates, charitable institutions, and foundations.

While there is no minimum account size required, accounts may be subject to a minimum annual fee of $500, which
may be negotiable.

Retirement plan accounts or individual retirement accounts:
When IARs provide investment advice to clients regarding retirement plan accounts or individual retirement accounts,
they and CIAS are fiduciaries within the meaning of Title I of the Employee Retirement Income Security Act (ERISA)
and/or the Internal Revenue Code, as applicable, which are laws governing retirement accounts. The way CIAS and its
IARs make money creates some conflicts with client interests, so the firm and its representatives operate under a special
rule that requires both to act in your best interest and not put the firm and representatives ahead of those of the client.

     Under this special rule provision, the firm and its representatives must:
        - Meet a professional standard of care when making investment recommendations (give prudent advice)
 -      - Never put the financial interests of the firm or its representatives ahead of a client’s when making
          recommendations (give loyal advice);
        - Avoid misleading statements about conflicts of interest, fees, and investments;
        - Follow policies and procedures designed to ensure that the advice given is in the client’s best interest;
        - Charge no more than is reasonable for services; and
        - Give a client basic information about any conflicts of interest.