Powers Investment Advisory Corporation

Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
 ASSET MANAGEMENT
 PIAC offers discretionary direct asset management services to advisory Clients. PIAC
 charges an annual investment advisory fee on the total assets under management as
 follows :
        Assets Under Management                 Annual Fee               Quarterly Fee
     First $2,500,000 ($0-$2,500,000)             1.00%                     .25%
            Your next $2,500,000                  0.80%                     .20%
       ($2,500,000.01 - $5,000,000)
            Subsequent amounts                     0.60%                      .15%
              ($5,000,000.01+)
 This is a tiered/blended fee schedule, the asset management fee is calculated by applying
 different rates to different portions of the portfolio. PIAC may group certain related Client
 accounts for the purposes of achieving the minimum account size and determining the
 annualized fee.

 For example (based on quarterly billing period):
 Client with $5,500,000 under management would pay $12,000.00 on an quarterly basis.
               AUM                     Quarterly fee          Total
               First $2,500,000        x 0.25% =              $6,250.00
               Next $2,500,000         x 0.20% =              $5,000.00
               Next $500,000           x 0.15% =              $750.00
               Total for the quarter                          $12,000.00

 In addition, PIAC charges an annual administrative fee. The administrative fee is as follows:
 Client Assets Under Management                        Administrative Fee
 Up to $75,000                                         $250
 $75,001 - $125,000                                    $175
 $125,001 - $150,000                                   $100
 Above $150,000                                        Fee waived

 Billing cycles are January, April, July and October. The annual fee is not negotiable.
 Fees are billed quarterly in arrears based on the amount of assets managed as of the close
 of business on the last business day of the previous quarter. Lower fees for comparable
 services may be available from other sources. Clients may terminate their account within
 five (5) business days of signing the Investment Advisory Agreement with no obligation
 and without penalty. After five (5) business days, the Client may cancel by providing
 written notice to PIAC and PIAC may terminate advisory services with thirty (30) days
 written notice to the Client. For accounts opened or closed mid-billing period, fees will be
 prorated based on the days services are provided during the given period. All unpaid
 earned fees will be due to PIAC. Client shall be given thirty (30) days prior written notice of
 any increase in fees. Any increase in fees will be acknowledged in writing by both parties
 before any increase in said fees occurs.
Client Payment of Fees
 Fees for asset management services are deducted from a designated Client account to
 facilitate billing or they may pay PIAC directly. The Client must consent in advance to direct
 debiting of their investment account.
Additional Client Fees Charged
 Custodians may charge transaction fees and other related costs on the purchases or sales of
 mutual funds, equities, bonds, options and exchange-traded funds. Mutual funds, money
 market funds and exchange-traded funds also charge internal management fees, which are
 disclosed in the fund’s prospectus. PIAC does not receive any compensation from these
 fees. All of these fees are in addition to the management fee you pay to PIAC. For more
 details on the brokerage practices, see Item 12 of this brochure.

Prepayment of Client Fees
 PIAC does not require any prepayment of fees.
External Compensation for the Sale of Securities to Clients
 Investment Advisor Representatives of PIAC receive external compensation for the sale of
 securities to clients as a registered representative of LPL Financial, a broker-dealer. This
 represents a conflict of interest because it gives an incentive to recommend products based
 on the commission received. As registered representatives, they do not charge advisory
 fees for the services offered through LPL Financial. This conflict is mitigated by disclosures,
 procedures, and PIAC’s fiduciary obligation to place the best interest of the Client first and
 Clients are not required to purchase any products or services. Clients have the option to
 purchase these products through another registered representative of their choosing.

Item 7: Types of Clients
Description
 PIAC generally provides investment advice to individuals and high net worth individuals.
 Client relationships vary in scope and length of service.
Account Minimums
 PIAC does not require a minimum to open an account.