Systematic Alpha Investments LLC

Item 5           Fees and Compensation

   A.
                                   INVESTMENT ADVISORY SERVICES
         SAI’s annual investment advisory fee is negotiable, but is generally a fixed fee and is
         dependent on the value of the assets placed under SAI’s management. Fees generally are
         not adjusted for additions to, withdrawals from, or fluctuations in the balance of an account.
         The fee that SAI agrees on is based upon various objective and subjective factors,
         including, but not limited to, the amount and type of the assets placed under SAI’s
         management and the complexity of the engagement. The services to be provided by SAI
         to any particular client could be available from other advisers at lower fees. All clients and
         prospective clients should be guided accordingly.

   B. Clients may elect to have SAI’s advisory fees deducted from their custodial account or may
      alternatively pay their fees by check or wire. If clients agree to have their fees deducted
      from their account, SAI’s Investment Advisory Agreement and the custodial/clearing
      agreement will authorize the client’s account’s custodian to debit the account of SAI’s
      investment advisory fee. In the event that SAI bills the client directly, payment is due upon
      receipt of SAI’s invoice. SAI generally deducts fees or invoices clients monthly, based
      upon the market value of the assets on the last business day of the previous month.

   C. Broker-dealers that clients receive execution from charge brokerage commissions and/or
      transaction fees for effecting certain securities transactions (i.e. transaction fees are charged
      for certain mutual funds, commissions are charged for individual equity transactions, and
      mark-ups and mark-downs are charged for fixed income transactions). Also, clients’
      account custodians will charge typical custodial fees and expenses. In addition, client
      accounts may invest in mutual funds (including money market funds) and ETFs that have
      various internal fees and expenses (i.e. management fees), which are paid by these funds
      but ultimately borne by clients as a fund shareholder. These internal fees and expenses are
      in addition to the fees charged by SAI.

   D. Trade away/Prime Broker Fees. Securities transactions will be affected through broker-
      dealers other than the account custodian, in which event, the client generally will incur both
      the fee (commission, mark-up/mark-down) charged by the executing broker-dealer and a
      separate “trade away” and/or prime broker fee charged by the account custodian.

   E. SAI’s annual investment advisory fee is pro-rated and generally paid monthly. SAI does
      not generally require an annual minimum fee or asset level for investment advisory
      services.

         The Investment Advisory Agreement between SAI and the client will continue in effect
         until terminated by either party by written notice in accordance with the terms of the
         Investment Advisory Agreement. Upon termination, SAI shall debit the account for the
         pro-rated portion of the unpaid advanced advisory fee based upon the number of days that
         services were provided during the billing quarter.

   F. Neither SAI nor its representatives accept compensation from the sale of securities or other
      investment products.

Item 7           Types of Clients

         SAI’s clients shall generally include high net worth individuals.