Ranch Capital Advisors Inc

Item 5: Fees and Compensation

Compensation – Portfolio Management Services
Our fee for portfolio management services is based on a percentage of the assets in your
account. The annual fee is set forth in the following schedule:

Annual Fee Schedule

             Total Assets Under Management                    Annual Fee
                       0 - $500,000                             1.50%
                   $500,001 - $1,000,000                        1.00%
                 $1,000,001 - $5,000,000                        0.85%
                     Over $5,000,001                            0.65%

Our annual portfolio management fee is billed and payable, quarterly in advance, based on the
balance at end of the previous billing period. The asset-based fee is billed on a quarterly basis,
in advance, based upon the market value of the Household Assets, including cash, on the last
day of the previous quarter as valued by the custodian.

If the portfolio management agreement is executed at any time other than the first day of a
calendar quarter, our fees will apply on a pro rata basis, which means that the advisory fee is
payable in proportion to the number of days in the quarter for which you are a client. If Assets
are deposited into or withdrawn from an Account after the inception of a quarter, the Fees
payable with respect to the Assets for the following quarter will be prorated based on the
number of days remaining in the quarter the deposit or withdrawal was made. Our advisory fee
is negotiable, depending on individual client circumstances.

At our discretion, we may combine the account values of family members living in the same
household to determine the applicable advisory fee. For example, we may combine account
values for you and your minor children, joint accounts with your spouse, and other types of
related accounts. Combining account values may increase the asset total, which may result in
your paying a reduced advisory fee based on the available breakpoints in our fee schedule
stated above.

We will deduct our fee directly from your account through the qualified custodian holding your
funds and securities. We will deduct our advisory fee only when you have given our firm written
authorization permitting the fees to be paid directly from your account. Further, the qualified
custodian will deliver an account statement to you at least quarterly. These account statements
will show all disbursements from your account.

Compensation - Financial Planning
We offer financial planning and consulting services on both a fixed fee basis and an hourly fee
basis. Our fixed fees are negotiable and range between $1000 and $5,000 annually depending

on the scope and complexity of the services rendered. The first half of the estimated fee is due
in advance of services rendered with the remaining balance is payable quarterly in advance.
Our hourly fee for financial planning is $250 - $450 and is payable as invoiced. Our fees are
negotiable depending upon the complexity and scope of the services rendered. We will provide
you with an estimate of the total time/cost at the start of the advisory relationship. In limited
circumstances, the cost/time could potentially exceed the initial estimate. In such cases, we will
notify you and request that you approve the additional fee. All terms of our engagement will be
evidenced in the agreement that you sign with our firm.

Compensation - Financial Coaching Subscription Membership Service
Our financial coaching service is a subscription service model. The subscription term and service
fee are agreed upon in advance and will range from $150-$500 a month depending on the
scope and complexity of the work. Typically, subscription terms are 3-6 months and are
renewable by the client. A 10% discount is offered if you choose to pay up front and in full for
the financial coaching service. Financial coaching fees are collected through a third-party
software whereby a client will create an account, agree to the subscription terms and monthly
fee, and enter payment information. Ranch Capital Advisors will not have the capability to view
or store personal banking or credit card data and therefore, we do not have custody of client
funds.

Compensation - Insurance
Gregory T. Pacitti, CFP®, Abigail U. Skipper, and Bradley S. Tremitiere provide investment advice
on behalf of our firm and are licensed as independent insurance agents. They will earn
commission-based compensation for selling insurance products, including insurance products
they sell to you. Insurance commissions earned by them are separate and in addition to our
advisory fees. This practice presents a conflict of interest because persons providing investment
advice on behalf of our firm who are insurance agents have an incentive to recommend
insurance products to you for the purpose of generating commissions rather than solely based
on your needs. You are under no obligation, contractually or otherwise, to purchase insurance
products through any person affiliated with our firm.

Cash Balances
Some of your assets may be held as cash and remain uninvested. Holding a portion of your
assets in cash and cash alternatives, i.e., money market fund shares, may be based on your
desire to have an allocation to cash as an asset class, to support a phased market entrance
strategy, to facilitate transaction execution, to have available funds for withdrawal needs or to
pay fees or to provide for asset protection during periods of volatile market conditions. Your
cash and cash equivalents will be subject to our investment advisory fees unless otherwise
agreed upon. You may experience negative performance on the cash portion of your portfolio if
the investment advisory fees charged are higher than the returns you receive from your cash.

Retirement Plan Rollover Recommendations
As part of our investment advisory services to our clients, we may recommend that clients roll
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Types of Clients
We offer investment advisory services to individuals, high net worth individuals, trusts, estates
and small businesses.

Account Minimums
In general, we require a minimum of $1,000,000 to open and maintain an advisory account. At
our discretion, we may waive this minimum account size. We may also combine account values
for you and your minor children, joint accounts with your spouse, and other types of related
accounts to meet the stated minimum.