Gregory Lyle & Co

Fees and Compensation
Gregory Lyle & Co. has a standard quarterly fee for investment advisory services of one-tenth
of 1% of assets under management, plus a $125 account fee, computed and payable quarterly
in advance. Fees are negotiable, and a fixed fee is possible. Hourly or fixed rate advice is
available in regard to securities not under direct management. Fees may not be increased
without the client's prior written consent. Fees are fully refundable within 5 business days of
advance payment, and thereafter are pro-rated for any period services are not provided.

When authorized in writing by a client, fees are payable by deduction from the client's account
upon written notice to the qualified custodian listed on the invoice. If not deducted from the
client's account, fees are payable semi-annually, up to six months in advance, by separate
remittance. In all instances, a written invoice will be sent to the client, including the fee, the
formula used to calculate the fee, the fee calculation itself, the amount of assets under
management on which the fee was based (if applicable), and the name of the qualified
custodian. The invoice will be sent to the client concurrent with the request for payment or
payment of the advisory fees. Clients are urged to compare this information with the fees
listed in the account statement. The Company complies with WAC 460-24A-106 (Additional
custody requirements for an investment adviser that directly deducts fees from client
accounts).

Total fees are generally comparable or less than the fees commonly payable to equity mutual
funds for management, and are generally less than fees payable to other investment advisers.

Clients will incur brokerage fees for transactions in their account which will be payable
directly to the broker the client has chosen. Most brokers add their brokerage fee to the
purchase cost settlement, or subtract it from the sale proceeds settlement, of a transaction.
If a mutual fund is purchased for an account, the client will incur a mutual fund management
fee that is subtracted from the income payable by the mutual fund. Generally, the only mutual
funds purchased by the Company for clients are money market mutual funds.

The Company will not purchase mutual funds or other securities for a client on which the
Company receives a commission.

Types of Clients
Gregory Lyle & Co. will provide investment advice to individuals, trusts, estates, charitable
organizations, pension and profit sharing plans, corporations and other business entities. A
majority of the Company's clients are individuals.

The minimum size for a managed client account(s) is generally $250,000.