Mutual Fund Protection Service

Item 5. Fees and Compensation
   Fee Billing
       Investment management fees are billed quarterly, in advance, meaning that we bill when the three-
       month billing period begins. Fees are deducted from a designated client account to facilitate billing.
       The client must consent in advance to direct debiting of their investment account.
        Mutual Fund Protection Service will submit and invoice directly to the custodian, which only
        indicates the fee payment amount. The custodian agrees to send the client a statement, at least
        quarterly, indicating all amounts dispersed from the account including the amount of the
        management fee paid. The custodian does not verify the fee calculation; therefore, it is the client’s
        responsibility to review and confirm the accuracy of the fee payment.
        For clients with assets invested in the IPS Strategic Capital Absolute Return Fund, when calculating
        the monthly value for the quarterly management fee, the value of any shares that the client holds in
        the Fund are excluded from the monthly value and no additional fees are charged on those invested
        dollars.

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     Fees for financial plans are billed 50% in advance, billed separately from investment accounts, with
     the balance due upon delivery of the financial plan.
     At termination, fees will be rebated on a pro rata basis for the uncompleted portion of the quarter.
     The portfolio value at the completion of the prior full billing quarter is used as the basis for the fee
     computation, adjusted for the number of days during the billing quarter prior to termination.

Description
    Mutual Fund Protection Service bases its fees on a percentage of assets under management,
    hourly charges, and fixed fees (not including subscription fees). Exceptions to this are client assets
    that the firm invests into its IPS Strategic Capital Absolute Return Fund. The firm will not charge
    fees directly on these assets since the firm will receive advisory and administration fees indirectly
    from the Fund. A complete explanation of fees and expenses charged by the Fund is contained in
    the Fund’s prospectus or offering memorandum.
     This Fee Schedule is subject to negotiation, depending on a number of factors of which some were
     discussed previously, but not limited to, the size, nature and the scope of complexity of a
     relationship.

     Assets Under Management                             Fee Schedule*
     Less than $100,000                                  1.00%
     $100,000 to $500,000                                $5,000/year or 1.00%
     Greater than $500,000

     * The standard annual Advisory Service Agreement fee is based on 1% of the AUM annually. The
     minimum annual fee is $5,000 and is negotiable. In some instances, where the AUM is below the
     minimum, a 2% annual fee may be assessed. Current client relationships may exist where the fees
     are lower than the fee schedule above. Under certain circumstances the fee will be waived all
     together. Mutual Fund Protection Service reserves the right to charge between 1% and 3% of AUM
     per year depending on the scope of work and AUM of a client. Fees are assessed in advance.
     Financial plans are priced according to the degree of complexity associated with the client’s
     situation. The fee for a financial plan is predicated upon the facts known at the start of the
     engagement. Mutual Fund Protection Service charges a fee which ranges from $1,000 to $3,500
     and is negotiable.
     Since financial planning is a discovery process, situations occur wherein the client is unaware of
     certain financial exposures or predicaments. In the event that the client’s situation is substantially
     different than disclosed at the initial meeting, a revised fee will be provided for mutual agreement.
     The client must approve the change of scope in advance of the additional work being performed
     when a fee increase is necessary.
     After delivery of a financial plan, future face-to-face meetings may be scheduled as necessary for
     up to one month. Changes to the plan after delivery may be charged at a $250/hour rate.

Other Fees
    Mutual Fund Protection Service, in its sole discretion, may waive its minimum fee and/or charge a
    lesser investment advisory fee based upon certain criteria (e.g., historical relationship, type of
    assets, anticipated future earning capacity anticipated future additional assets, dollar amounts of
    assets to be managed, related accounts, account composition, negotiations with clients, etc.).
    Some advisory agreement clients may have the fee waived for financial planning services.
     Custodians may charge transaction fees on purchases or sales of certain mutual funds and
     exchange-traded funds. These transaction charges are usually small and incidental to the
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         purchase or sale of a security. The selection of the security is more important than the nominal fee
         that the custodian charges to buy or sell the security.
         Mutual funds generally charge a management fee for their services as investment managers. The
         management fee is called an expense ratio. For example, an expense ratio of 0.50 means that the
         mutual fund company charges 0.5% for their services. These fees are in addition to the fees paid
         by you to Mutual Fund Protection Service, with the exception of client assets invested in the IPS
         Strategic Capital Absolute Return Fund.
         Mutual Fund Protection Service is the investment adviser to the IPS Strategic Capital Absolute
...

Item 7. Types of Clients
    Description
        Mutual Fund Protection Service generally provides investment advice to individuals, high net worth
        individuals and families, investment companies, financial advisers, pension and profit sharing plans,
        trusts, estates, charitable organizations, corporations and other business entities.
         Client relationships vary in scope and length of service.

    Account Minimums
        The minimum account size is $500,000 of assets under management, which equates to an annual
        fee of $5,000.

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         When an account falls below $500,000 in value, the minimum annual fee of $5,000 may be
         observed.
         Mutual Fund Protection Service has the discretion to waive the account minimum. Accounts of less
         than $500,000 may be set up when the client and the adviser anticipate the client will add additional
         funds to the accounts bringing the total to $500,000 within a reasonable time. Other exceptions will
         apply to employees of Mutual Fund Protection Service and their relatives, or relatives and certain
         referrals of existing clients.
         Clients receiving ongoing asset management services will be assessed a $5,000 minimum annual
         fee. This fee may be negotiated. Clients with assets below the minimum account size may pay a
         higher percentage rate on their annual fees than the fees paid by clients with greater assets under
         management.