Lederer & Associates Investment Counsel

Item 5. Fees and Compensation
Description
Our fee schedule is listed below:
    1% on the first $5 million under management
    ¾ of 1% on the next $5 million under management
    ½ of 1% on the balance of assets under management

Fees are computed as a percentage of the market value of assets under management as of the last day of
each calendar quarter. Market value is based on trade date valuation and includes accrued interest. We
use a third-party portfolio management system to calculate fees based on market values provided by your
custodian. Unmanaged assets are excluded from the market values.
Depending upon the size of the portfolios, the market values may be combined with other family accounts
in the same household and the rates may be negotiable. Minimum annual fees may be imposed on
portfolios under $500,000. Fees for existing clients may be higher or lower than current posted rates.
New Accounts and Cash Flows
Fees are pro-rated for all new accounts established between the billing cycles. Fees are also pro-rated for
large deposits and withdrawals (defined as equal to or greater than $250,000 and 25% of the market value
of the portfolio prior to the addition or subtraction) made between the billing cycles.
Fee Payment Methods
Fees are payable quarterly in advance. You may authorize your custodian to deduct management fees
from your custodial account or pay us directly for fees incurred.
General Termination Provisions
Our investment management services are continuous but may be terminated at any time by either party
upon written notice or custodian notification. Fees paid in advance will be prorated to the date of
termination and any unearned portion will be refunded.
Additional Fees and Expenses
You may incur brokerage commissions, transaction fees, and other related costs and expenses. You may
also incur administrative charges imposed by custodians and broker-dealers, such as custodial and wire
transfer fees.
Lederer & Associates may use mutual funds or exchange-traded funds to fill specific portfolio needs. If
we use these funds, you will incur the fund's management and administrative fees, plus our investment
management fees. You may also incur commissions imposed by broker-dealers and back-end sales
charges imposed by the mutual fund should the holding period not meet the minimum requirement to
avoid such fees.

Item 7. Types of Clients

Lederer & Associates provides investment supervisory services to individuals, trusts, estates, foundations,
charitable organizations, corporations, and pension and profit-sharing plans, including self-directed
401(k)s, IRAs, and IRA Rollovers. We generally require a minimum dollar amount of $500,000 of assets
under management. This minimum may be waived in certain situations.