R F Lafferty & Co Inc

5. FEES AND COMPENSATION

Fees for RFL Advisor Program are computed at an annualized percentage of assets under
  management on a sliding scale. All fees are negotiable. There are 3 options available.

                                       SCHEDULE A

                          MANAGED ACCOUNT FEE SCHEDULE

Please select the appropriate option from below:

   ●   Option 1. __________ (Please Initial)

                                                        ASSET FEE        FEE TO
                                ASSET TOTAL             (Maximum         CLIENT
                                                        Allowable)

                            $25,000 - $250,000 *          2.75%

                               $250,00-500,000                2.50%

                               $500,001 - $750,000            2.25%

                               $750,00 -$1,000,000            2.00%
                               $1,000,001          -
                               $2,500,000                     1.50%

                               $2,500,001 - Greater           1.25%
                               $5,000,001 -
                               $10,000,000                  Negotiable
                               $10,000,001 and
                               above                         Negotiable

                       * Minimum advisory account size is $25,000.

   ●    Option 2. __________ (Please Initial)

        Note: Minimum rate of $200/hour to be invoiced quarterly,
        in arrears, by R. F. Lafferty & Co., Inc.

        Hourly Rate: $____________________

   ●    Option 3. __________ (Please Initial)
        Note: All fees to be invoiced in arrears by R. F. Lafferty & co., Inc.

       a. Fixed Fee:                  $____________________

       b. Fixed Fee Billing option:    ______________ Quarterly

                                      ______________ Semi-annually

                                      ______________ Annually

For the RFL Advisor Program the fee will be payable quarterly in advance. The first
payment is due and payable upon execution of the Agreement and will be assessed pro-rata
in the event the Agreement is executed other than the first day of the new calendar quarter.
Subsequent payments are due and will be assessed on the first day of each calendar quarter
based on the value of the portfolio as of the last day of the previous calendar quarter.

If a financial plan is requested by the client, the fee may be included under the RFL Advisor
Program. In almost all cases the cost is inclusive, and no additional fees are required. If the
client requests, the IA Rep will quote a fixed fee ranging from $1,500 to $25,000,
depending upon the nature and complexity of services, the client’s financial situation, and
the anticipated time to be incurred. The IA Rep may require the full fee to be paid in
advance or a retainer fee (e.g., 50%) to be paid in advance with the balance due on
delivery of the written plan. The IA Rep may apply financial planning fees to offset first year
fees of the RFL Advisor Program, should the client choose to implement the Program.

These fees are for advisory services only and do not include any transaction fees or
commissions, which may be charged separately by the broker/dealer’s custodial firm. See
the section heading Brokerage Practices for more information. Mutual funds are purchased
at NAV or no-load, however transaction fees may apply.

Payment of fees may be paid direct by the client, or client may authorize RBC or Pershing as
the custodian holding client funds and securities to deduct RFL advisory fees direct from the
client account as prepared by RBC or Pershing on behalf of RFL. The custodian will provide
periodic account statements to the client. Such statements will reflect all fee withdrawals
made on behalf of RFL. It is the client’s responsibility to verify the accuracy of the fee
calculation.

Fees as published on the fee schedule may be negotiable.

Fees are not collected for services to be performed more than six months in advance.

In addition to fees paid for advisory services with respect to clients' investments in mutual
funds, and in accordance with the mutual fund’s prospectus, clients pay additional fees on
the mutual fund investment because the mutual funds also pay advisory and/or
management fees to an investment advisor.

IA Reps of RFL are also Registered Representatives (“RRs”) of RFL, a broker/dealer, and as
such may receive commission-based compensation for the sale of securities and other
investment products. RFL and its IA Reps do not double-dip and will either receive fee-
based compensation or commissions on specified assets. Mutual funds recommended under
advisory services will be “no-load” or “load-waived.” Client will not pay the advisory fee for
mutual funds held in the RFL Advisor Program that were purchased from RFL as a
broker/dealer with a front-end sales load until the client has held those shares for at least
two years from the date of the initial purchase. In the case where a client invests in a
mutual fund, the client may also indirectly pay for the expenses and advisory fees charged
by the mutual fund companies in which they invest. Clients are not obligated to purchase
recommended investment products, or to purchase through our firm or affiliated firms.
RFL’s primary business is as a broker/dealer.

For the RFL Advisor Program, services will continue until either party terminates the
agreement upon receipt of written notice. If termination occurs prior to the end of a calendar
quarter, a pro-rata refund of unearned fees will be made to the client, provided that the
minimum annual fee requirement in the amount of $100.00 has been satisfied. Upon
termination of the Agreement, it is solely Client’s responsibility to issue instructions regarding
disposition of the assets in the account. As of the date of termination, RFL will no longer be
...

7. TYPES OF CLIENTS

RFL provides advisory services to individuals, pension and profit-sharing plans, trusts,
estates, charitable organizations, corporations, and other business entities.

RFL sets the initial minimum account size under the RFL Advisor Program at $50,000. RFL
may waive this minimum in its sole discretion.