Each client is generally required to pay Alpha Asset Management a monthly management fee of 1/12 of 2% of the account's beginning Net Asset Value, regardless as to the performance for previous month, and an incentive fee of 20% of new monthly trading profits.
The incentive fee is paid only if an account has new trading profits. Thus, if the account experiences a loss after an incentive fee is paid, Alpha Asset Management will retain the payment but will not receive another incentive fee until the account has subsequent trading profits.
Alpha Asset Management may pay persons or firms who introduce accounts to it a portion of the fees it receives from such accounts. Alpha Asset Management reserves the right to modify the management fee and incentive fee.