Charter Research & Investment Group Inc

Item 5 – Fees and Compensation

Charter Research & Investment Group, Inc. is a fee-only Registered Investment Advisor. “Fee-
Only” means that our compensation is not contingent on the purchase or sale of a financial
product. We do not receive commissions, rebates, awards, finder's fees, or any form of
compensation as a result of our suggested course of action.

Our fee is calculated based on the value of the assets under our management according to the
schedule listed below.

Fee Schedule

              < $3,500,000                              1.00%
              $3,500,000 to $7,000,000                  0.75%
              $7,000,000 to $10,500,000                 0.55%
              >$10,500,000                              0.25%

Clients are billed at the end of each quarter (in arrears) in respect of assets under management
valued at the end of such quarter.

Client’s fees are negotiable and under special circumstances other rates may be charged.

A client’s fee is either paid directly by the client or from the client’s account after the client has
furnished written authorization to the custodian of the account authorizing such payment.

Clients do incur transaction-related costs charged by the custodian.

See Item 12 (Brokerage Practices) for detailed information regarding fees and commissions
charged by the custodian.

In certain situations, the use of no-load mutual funds may be employed as part of Charter
Research & Investment Group, Inc.’s management services. In this case, current and
prospective clients are made aware of the fees inherent in such funds in addition to Charter
Research & Investment Group, Inc.’s investment management fees.

Clients are not required to pay any fees in advance.

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Charter Research & Investment Group, Inc. and/or its employees do not receive compensation
for the sale of securities or other investment products, including asset-based sales charges or
service fees from the sale of mutual funds.

•     Mutual funds purchased by Charter Research & Investment Group, Inc. are primarily no-
      load, institutional share class mutual funds.

•     With the exception of the client’s active company retirement plans (401k, 403b, Profit
      Sharing Plan, etc.), we recommend clients custody their assets at Charles Schwab & Co.,
      Inc., and allow Charter Research & Investment Group, Inc. to execute all trades on their
      behalf.

•     Charter Research & Investment Group, Inc. does not receive revenue from commissions or
      other compensation for the sale of investment products we recommend.

•     Advisory fees are not reduced and/or impacted by commissions or markups; Charter
      Research & Investment Group, Inc. does not earn revenue from commissions and/or
      markups.

Item 7 – Types of Clients

Charter Research & Investment Group, Inc. primarily works with high net worth individuals
and families.

Generally, Charter does not render investment advice with respect to households with less than
$750,000 in investable assets. We do reserve the right to accept accounts of lesser amounts.

Individuals

•   Pre-Retiree
•   Retiree
•   Seniors

Families

We work closely with high net worth families in the coordination of our services with outside
professionals including attorneys, accountants and risk management specialists.

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