Capital Investment Services of America Inc

Item 5. Fees and Compensation
Investment Advisory Services
Our advisory fees are based on a percentage of assets under management. When clients have multiple accounts, they
are combined to achieve any potential reduced rate. The fee is initially calculated based on the total market value of the
assets under supervision on the date preceding the account’s effective date. The fee is calculated and prorated for the
first quarter. Thereafter, one-quarter (1/4) of the annualized fee is recalculated quarterly, based on the current market
value of the assets, and is payable in advance of the quarter.

Annual Fee Rates for Equity Only and Blended Accounts:

        1% on first $500,000 of assets
        .75 of 1% on the amount from $500,001 to $1,000,000 of assets
        .60 of 1% on the amount from $1,000,000 to $2,000,000 of assets
        .45 of 1% on the amount over $2,000,000

The following rates apply to relationships invested exclusively in fixed income securities (i.e. bonds, bond funds, bond
ETFs, etc.).

Annual Fee Rates for Accounts in Fixed Income Only Relationships:
       .70 of 1% of the first $1,000,000 of assets
       .45 of 1% on the next $1,000,000 of assets
       .40 of 1% on the next $1,000,000 of assets
       .35 of 1% on the next $7,000,000 of assets
       .25 of 1% on the next $10,000,000 of assets
       Over $20,000,000 of fixed income assets, please contact Capital

Charitable accounts receive a 15% discount from the fee schedules above.

In the event a client terminates the Investment Advisory Agreement, any fees paid in advance are refunded to the client
on a pro-rated basis. Written notice is required (mail, fax, or email is acceptable). Prospective clients should obtain and
review a copy of our Investment Advisory Agreement for more information.

Clients can choose to pay their quarterly fees upon receipt of their fee bill, or they will opt to have the fees deducted from
their brokerage account upon a one-time authorization by the client, which can be changed at any time.

Capital assesses no other fees, commissions, or charges and receives no other compensation from the purchase or sale
of securities. We believe this helps avoid potential conflicts of interest. Our management fees are our sole source of
income.

Since Capital is not a brokerage firm, our clients must select a brokerage, bank, or other custodian to hold their securities.
Some of these firms charge either a commission for each transaction or a fee based on a percentage of the value of the
clients’ assets held at their firm. These commissions or fees are in addition to the fees charged by Capital and should be
taken into consideration as well. There can be a wide variation in costs, and we are happy to discuss them with prospective
clients.

In addition, as mentioned previously, we typically use exchange-traded funds (ETFs), and occasionally mutual funds, in
our client accounts. In those cases, there can be indirect costs incurred that are charged by the fund or ETF sponsor.

Financial Planning Services
Financial planning services are offered at no additional cost to investment advisory clients of Capital. Capital does not
typically offer financial planning services as a standalone service.

For any other fees in connection with our advisory services, please refer to Item 12 of this brochure.

Item 7. Types of Clients
Capital provides investment advice to individuals, trusts, estates, endowments, non-profit organizations, retirement
plans, and businesses. The minimum value of a client relationship is $500,000; however, we reserve the right to waive
the minimum requirement. In all cases, we function on a discretionary basis and do not review individual transactions
with clients in advance. For this reason, we are best suited for clients who are comfortable delegating the day-to-day
decision making to a professional advisor.