Palomar Advisors Inc

Item 5- Fees and Compensation
Following is the tiered annual fee schedule of Palomar Advisors. When using a tiered annual fee schedule,
the annual fee is calculated by applying different rates to different portions of the assets under
management. The following tiered fee schedule will be blended.

   5a, b & d: Fee Schedules, Payments & Options
   Individual Investment Management
                 Assets Under Management                                    Annual Fee (%)
                 $0 to $1,000,000                                           1.00%
                 $1,000,001 to $3,000,000                                   0.75%
                 $3,000,001 and above                                       0.50%

   Prior to 04/01/2024, the following tiered fee schedule was in place:

   5a, b & d: Fee Schedules, Payments & Options
   Individual Investment Management
                 Assets Under Management                                    Annual Fee (%)
                 Less than $250,000                                         1.00%
                 $250,001 to $750,000                                       0.75%
                 $750,001 and above                                         0.50%

 The previous fee schedule will continue to be in effect for existing clients of Palomar Advisors. New
 clients will be subject to the new fee schedule. Clients with multiple accounts will have assets
 aggregated for breakpoints.

 For purposes of determining value, securities and other instruments traded on a market for which
 actual transaction prices are publicly reported are valued at the last reported sale price on the
 principal market in which they are traded. In certain circumstances, fees may be negotiable. The fee
 includes the time and activities necessary to work with your attorney and/or accountant in reaching
 agreement on solutions, as well as assisting them in implementation of all appropriate documents.
 We are not responsible for attorney or account fees charged to you as a result of the above activities.

 Compensation for our services will be calculated in accordance with what is set in the client
 agreement. We may modify the terms of any agreement by written changes submitted to the client
 for signature. While we strive to maintain competitive fees, the same or similar services may be
 available from other firms at higher or lower fees.

 Palomar Advisors fees are paid from your account by the custodian when we submit an invoice to them. If
 there is insufficient cash in your account to pay your fees, an equal balance of securities in your portfolio may
 Form ADV Part 2A Firm Brochure                                                                Page 8

be sold to pay our fee. In addition to our fees, there may be custodial, mutual fund, 12b-l fees or similar
third-party management fees and charges.

Palomar Advisors fees are paid quarterly in arrears, with payment due within 10 days from the date of the
invoice. Our fee is determined by taking the percentage rate we charge times the market value of the
account. The market value is the sum of the values of all assets in the account, not adjusted by any margin
debit. Fees for partial quarter at the commencement or termination of our agreement will be billed or
refunded on a pro-rated basis contingent on the number of days the account was open during the quarter.
Quarterly fee adjustments for additional assets received into the account during a quarter or for partial
withdrawals will also be provided on the above pro rata basis.

Sponsored Retirement Plans
For Retirement Plan services the retirement plan sponsor has two fee options – an annual base fee plus a
percentage of plan assets or a tiered fee schedule based on a percentage of plan assets. The fee schedules
are negotiated and may be customized based on the facts and circumstances for each retirement
plan client. Factors include frequency of investment committee meetings, expected call volume
from participants or committee members, frequency of enrollment meetings, expected interaction
with third party administrators and time and travel expense. Existing legacy accounts may have a fee
structure that differs from the fee structure below.

When the plan fees are billed as a percentage of plan assets, the retirement plan sponsor will pay
Palomar Advisors subject to a signed investment advisory agreement in arrears on either a monthly or
quarterly based on the account's market value as of the close of business on the first or last business day of
the period to be billed based on the amount reported on the statement the retirement plan sponsor
receives from the custodian.

The initial fee will be calculated on a prorated basis. Fees will be deducted from the retirement plan's assets
pro rata based on each participant's account balance in accordance with the signed plan expense account
agreement. These factors will be reviewed and agreed upon prior to signing the investment advisory
agreement. Plan participants will receive a quarterly statement from the plan custodian reflecting these
asset-based deductions in their account.

Retirement Plan Fees
Option 1
$2000 annual base fee (Paid by Plan Sponsor), plus an annual fee of 0.25% of total plan assets.

Option 2

                Plan Assets Under Management                             Annual Fee (%)
                $0 to $2,500,000                                         0.50%
                $2,500,001 and above                                     0.25%
Form ADV Part 2A Firm Brochure                                                               Page 9

Defined Benefit Plans and Corporate Account Fees
Option 1
Annual fee of 0.50% of total plan assets.

Option 2

                Plan Assets Under Management                           Annual Fee (%)
                $0 to $2,500,000                                       0.50%
                $2,500,001 and above                                   0.25%
...

Item 7- Types of Clients
   Palomar Advisors generally provides asset management to the following types of clients:
      ■ Individuals
      ■ High-Net-Worth Individuals
      ■ Pension and Profit Sharing Plans
      ■ Charitable Organizations
      ■ Corporations

   Minimum Account Size
Palomar Advisors has a minimum Retirement Plan account value of $500,000 when utilizing Option 2
fee schedule. This minimum can be waived at the discretion of Palomar Advisors.