Parsonex Advisory Services Inc

Fees and Compensation
There are various fee structures Parsonex Advisory Services utilizes which are customized to the client’s needs
and objectives. Fees may be assessed as a percentage of assets under management either through a managed
brokerage account or a sub-advisor, hourly fees, or negotiated fixed fees may be agreed upon. Additionally,
Parsonex Advisory Services may act as a solicitor for a third-party manager. In cases where Parsonex Advisory
Services acts as a solicitor for a third-party money manager or advisor, clients will sign a Form ADV Part 2 from
the third-party advisor and a solicitor’s agreement and only the disclosed fee to the third party would be
deducted from the client’s account. The specific fee structure will be disclosed in the Investment Advisory
Agreement. Parsonex Advisory Services does not sponsor any wrap fee programs. Fees for personal
investment management, financial consulting and investment research services are reasonable and modest.
Portfolio and investment management fees for stock accounts are computed as a percentage of total assets
(securities and cash) under management, payable quarterly, with a $250.00 minimum annual fee. Under certain
circumstances, professional investment management fees may be deductible for income-tax purposes. Clients
may terminate the arrangement following agreed upon notice and satisfaction of the fee arrangement.

Parsonex Advisory Services Third Party Managers/Sub-Advisors
Fees vary by sub-advisor and/or investment manager used, according to the sub-advisor’s or investment
manager’s fee schedule. Advisory fees are based on the total assets under management and typically are

between .4-1% per year. There may be additional transaction, custody, money manager and/or platform fees.
Fees on managed accounts are deducted from assets unless directed otherwise by you.

Parsonex Advisory Services Managed Brokerage Accounts
Parsonex Advisory Services representative will obtain written authorization from clients for discretionary
authority to manage client accounts on a brokerage platform and for deducting fees. Annual fees are negotiable
at the discretion of the advisor who manages client’s account. The following is a guideline for such fees:

                             Assets Under Management                  Annual Fee
                             Under $1,000,000                            1.00%
                             $1,000,000 - $3,000,000                      .80%
                             $3,000,000 - $5,000,000                      .60%
                             Over $5,000,000                              .40%

The annual fee is specified in the Client Advisory Agreement. The annual fee is prorated and deducted quarterly
from the client’s advisory or assigned account based on the market value of the assets under management on
the last business day of each quarter in advance. The client shall receive an invoice for fees concurrent with the
deduction by the account custodian. The client will also receive an account statement from the custodian at
least quarterly. There may be additional transaction, custody, money manager and/or platform fees associate
with a Managed Brokerage Account.

Hourly or Fixed Fees
Fees for consultations and financial planning are negotiable, but generally are billed at minimum of $100 per
hour or a pre-determined fixed amount. Fixed fees can vary widely depending on the scope of the services
contracted. These fees will be disclosed in the Client Advisory Agreement.

You may cancel a Client Advisory Agreement with Parsonex Advisory Services at any time with thirty days prior
written notice. You will be given this brochure form ADV Part 2A, 48 hours in advance of signing an agreement or
you will have five business days to unconditionally cancel the agreement.

Any fees paid for financial planning services and collected in advance will be refunded unconditionally to you if
you request termination in writing, on a pro-rata basis, taking into account the percentage of services rendered
to you up to the time of termination.

Additional compensation may be received by the representative should you implement the recommendationsof
the advisor as outlined in the financial plan. You have the option of purchasing those recommended services
through other agents or brokers not associated with Parsonex Advisory Services.

Many of Parsonex Advisory Services IARs are dually registered with Parsonex Securities, Inc. You can purchase
many of the same or similar investments as those available in an advisory program for a lower fee through a
broker/dealer, although you will not receive the additional advisory services. It is important that you consider
the additional costs associated with an advisory program before investing. We believe Parsonex Advisory
Services fees are competitive with those charged by other investment advisors for comparable services;
however, comparable services may be available from other sources for lower fees.

Performance Based Fees and Side-By-Side Management
We do not accept any performance-based fees or side-by-side management accounts.

Types of Clients
Parsonex Advisory Services offers services to individuals, high net worth individuals, pooled investment vehicles

(other than investment companies), pension and profit-sharing plans, charitable organizations, and corporations
or other businesses. Our minimum account size is typically $100,000. Parsonex Advisory Services does not open
accounts that may be restricted under the PATRIOT ACT or Foreign Corrupt Practices Act.
Additional requirements for opening or maintaining an account may be imposed by custodians or third-party
investment advisers managing the account.

Methods of Analysis, Investment Strategies and Risk of Loss
Our advisors will use a variety of methods and sources in the process of researching and analyzing securities and
managers to be used. Parsonex Advisory Services uses Third Party Registered Investment Advisors for analysis
and investment strategies utilized in managing assets. Managers are evaluated using data and information from
several sources, including the manager and independent databases. Our process of selecting advisors takes into
consideration the process by which a sub-advisor manages assets, their historical track record, tactical and
strategic approach for managing assets, historical volatility, investment styles, investment philosophies and
correlation across asset styles. Additionally, we review the manager’s Form ADV Part 2A, as well as portfolio
holdings reports that help demonstrate the manager’s securities selection process. Sub-advisors may use other
analysis and management techniques that will be explained in the brochures. Please review sub-advisor
brochures. We may utilize a multi-manager approach to managing assets in order to help clients diversify when
necessary.

Securities may be analyzed using the fundamental method of analysis, financial newspapers and magazines,
research material prepared by third parties, corporate rating agencies, annual reports and other public filings,
and company press releases as sources of information.

There are many risks associated with investing in the market. Past performance does not guarantee future
performance. All investments may decrease in value and you could lose all or part of your principal. Different
investment strategies involve material risks that are described in detail on fact sheets available for each strategy
through a third-party manager.

Diversification can help reduce overall risk of a portfolio but may still be adversely affected by overall market
trends; specific security issues; or poor investment decisions. Diversification “not putting all your eggs in one
basket” can reduce the risk of a total loss of principal. A major risk for most investors will be the deviation from
the average return of an index or an expected return in that the investment could under perform the
expectations of the investor. The risk in a portfolio of diversified stocks or investments will be less than the risk
inherent in holding any one individual stock or investment by itself (provided the risks of the various stocks are
not directly related.)
For the Sterling Fund, Investment conditions sought are:
Dynamic changes in a company that will positively benefit profits and dividends, such as strategic restructuring,
acquisition or break up (i.e. spin-off)
A stock whose market price severely undervalues company assets, recognition of which will eventually
trigger a higher stock price.

A well-established company that our research, analysis and valuation is determined to be out of favor due to non-
company specific factors.

Our investment decisions are based on fundamentals, so we aggressively pursue the search for undervalued
situations when stock prices are depressed. Since the investments we select are usually in situations whose dynamics
may evolve over a one-, two- or three-year duration, long-term capital appreciation is the norm. However, should
our price target be reached sooner, we may opt to take profits and realize short-term capital gains.

Our research efforts are usually, but not exclusively, concentrated on larger companies (NYSE and NASDAQ-listed)
with broad stock capitalization and sufficient industry and corporate information readily available for thorough
analysis.
Conservation of capital is a basic tenet of the Sterling Fund’s investment philosophy and stock selection process.
We therefore do not engage in risky strategies such as trading, short-selling, buying on margin, or speculating in
derivatives. Our portfolio management approach utilizes diversification to help control the risk that is always present
in stock market investments. In addition, to maximize total investment return, some dividend yield is sought
whenever possible.