MH & Associates Securities Management Corp

Fees and Compensation
Description
MH & Associates is compensated for our advisory services by fees paid by our clients. The basic fees for discretionary
investment management services are based on a percentage of market value of the assets as listed in the next section.

Fee Schedule
            Account Size                                 Annual Rate
            First $3,000,000                             1.0% Per Annum
            Next $3,000,000                              0.8% Per Annum
            Next $4,000,000                              0.6% Per Annum
            Over $10,000,000                             0.5% Per Annum

The fee can, in some cases, be higher in taxable accounts depending on the tax planning and monitoring the firm does.
Occasionally, the firm has reduced its fees to non-profit organizations and/or in competitive situations. Prior to
08/1/2008, the firm operated under a different fee structure.

Fee Billing
Fees are calculated at the end of each quarter and are based on the market value of assets on the last business day of
each quarter. One fourth (1/4) of the annual fee is payable at the time of each computation. Upon client approval and
dependent on the custodian having the technology, the firm will charge the client’s account directly for fees due on a
quarterly basis. Under this direct charge method, the invoice(s) will be submitted to the custodian three business days
after the firm’s statement and invoice are sent via mail.

Contract termination procedures and conditions are that either party be given written notice of termination. In the
eventof termination during a quarterly billing period, the amount of the final fee payable shall be prorated as of the date
of termination. The client has the right to terminate the contract, without penalty or cost, within five (5) business days
after entering the contract.

Other Fees
The firm utilizes, in certain circumstances, mutual funds and/or Exchange Traded Funds (ETFs) in its investment
management services and the client will indirectly incur additional investment management fees and other expenses that
are charged by the mutual fund and/or ETF. The circumstances in which mutual funds and/or ETFs are typically used are:

         (1) To achieve a broader diversification in a specialized industry or group
         (2) To achieve investment diversification in a specific country or region
         (3) Closed-end funds that are selling at a discount to its net asset value.
In addition, the firm occasionally invests in foreign companies through American Depository Receipts (ADRs) and the client
may incur administrative fees.

Additional Compensation
MH & Associates receives no compensation other than that of its primary business as laid out above.

Types of Clients
Description
MH & Associates current clients include:

       • Individuals
       • High Net Worth Individuals

Account Minimums
Generally, the firm requires a minimum of $300,000 to establish an investment advisory account. In certain circumstances
the firm will consider establishing an account with less than $300,000 due to expected additional cash flow or a pre-
existing client relationship.

Methods of Analysis, Investment Strategies and Risk of Loss