Des Moines Investments LLC

Fees and Compensation                      Item 5

The advisory fee is charged in arrears to each quarter. Annual management expenses assessed via DSMI on
brokerage accounts will range from 1% to .80% per year. A typical account has 1/4th of one percent at the end of
each quarter. This equates to an annual expense of 1.00% per year. Larger accounts can be assessed lower
management charges in this range. Advisory fees are negotiable and can vary based on balances held, trading
activity, and the need for ongoing reviews. DSMI does not have a fee schedule that is fixed or charted. New
accounts start at an annual fee of 1.0% and can go downward.

As authorized in the DSMI client service agreement, the account custodian withdraws advisors’ fees directly from
the client’s accounts according to the custodian’s policies and procedures. Carefully review your monthly
statements and verify your calculation of fees. The custodian does not verify the accuracy of fee calculations. Fees
are paid from the default money market holdings in each account.

When client accounts are closed, they can be assessed quarterly management expenses up to the date the account is
closed. Refunds are not applicable since fees are assessed in arrears. The advisory relationship can be terminated
by either party with 10 business days of written notice.

Performance-Based Fees and Side by Side Management                                          Item 6

Performance-based fees and Side by Side Management are not allowed within this practice.

Types of Clients                Item 7

DSMI provides investment advice to: Individuals, Custodial Accounts, Business Owners, and Trusts.

Methods of Analysis, Investment Strategies, Risk of Loss                                       Item 8

A. Methods of Analysis & Investment Philosophy
Personalized investment advice is based upon the following considerations:

    •    Goals and Objectives
    •    Time Horizon
    •    Risk Tolerance
    •    Current and Future Income Needs
    •    Portfolio Diversification
    •    Tax Considerations & Capital Gains
    •    Outside Investments and Retirement Plans
    •    Liquidity Requirements
    •    Inflation Protection
    •    Restriction or customizations

DSMI’s investment philosophy is to be forward-looking at the markets in relation to the economy, business cycle,
and changing events. DSMI has CNBC on throughout the trading day and keeps abreast U.S. and global economies
and highlighted investments.

B. Investment Strategies
    •    Long term purchases (securities held at least a year)
    •    Short term purchases (securities sold within a year)
    •    Trading (securities sold within 30 days)
    •    Margin and short sale transactions are allowed but not encouraged

C. Risks
Clients need to be aware there is a risk of loss when investing using any strategy. Note: this is not an all-inclusive
list of the risks investors face.

Market Risk- The possibility of an investor experiencing losses due to factors that affect the overall performance of
the financial markets in which he or she is involved. Market risk, also called "systematic risk," cannot be eliminated
through diversification, though it can be hedged against in other ways.

Foreign Securities and Currency Risk- Refers to international and emerging market securities. Losses and gains on
international transactions may incur due to currency fluctuations, foreign taxes, and regulations. Potential for loss
include illiquid markets, political instability, and poor accounting standards.

Capital Risk- The potential of loss of part or all an investment. It applies to the whole gamut of assets that are not
subject to a guarantee of full return of original capital. Investors face capital risk when they invest in stocks, non-
government bonds, real estate, commodities, and other alternative assets. When a company invests in a project, it
exposes itself to the risk that the project will not produce future returns to cover its capital invested.

Interest Rate Risk- The risk that arises for bond owners from fluctuating interest rates. How much interest rate risk a
bond has depends on how sensitive its price is to interest rate changes in the market. The sensitivity depends on two
things, the bond's time to maturity, and the coupon rate of the bond.