Reagan Companies Asset Management Inc

Item 5: Fees and Compensation

A. Fee Schedule

Investment Supervisory Services Fees

              Total Assets Under Management                     Annual Fee

                      First $1 - $2,000,000                        1.00%

                         Next $2,000,000                           0.75%

                  Everything Over $4,000,000                       0.50%

These fees are negotiable depending upon the needs of the client and complexity of the
situation and the final fee schedule is attached as Exhibit II of the Investment Advisory
Contract. Fees are calculated using the value of the account on the last business day of the
previous quarter and are calculated by dividing the annual fee percentage by 4(4 quarters)
and are paid quarterly and initial fees for new accounts will be calculated on a pro-rata
basis.

Clients may terminate their contracts without penalty, for full refund, within 5 business
days of signing this advisory contract. After that point, this agreement may be terminated
for any reason by any party with thirty days’ written notice of such termination by the
parties.

Refunds are given on a prorated basis, based on the number of days remaining in a
quarter at the point of termination. Fees that are collected in advance will be refunded
based on the prorated amount of work completed up to the day of termination within the
quarter terminated. The fee refunded will be the balance of the fees collected in advance
minus the daily rate* times the number of days in the quarter up to and including the day
of termination. (*The daily rate is calculated by dividing the quarterly AUM fee by the
number of days in the termination month).

Advisory fees are withdrawn directly from the client’s accounts with client written
authorization. The IA will review and evaluate, on a case by case basis, requests from
clients to receive an invoice and pay their fee directly rather than from their accounts.

Financial Planning Fees

Fixed Fees

The rate for creating client financial plans is $1,500. Fees are paid in arrears upon
completion. Because fees are charged in arrears, no refund is necessary. The fees are
negotiable and the final fee schedule will be attached as Exhibit II of the Financial
Planning Agreement. Clients may terminate their contracts without penalty within five
business days of signing the advisory contract.

Hourly Fees

Depending upon the complexity of the situation and the needs of the client, the hourly fee
for these services is between $150 and $500. The fees are negotiable, and the final fee
schedule will be attached as Exhibit II of the Financial Planning Agreement. Fees are paid
in arrears upon completion. Because fees are charged in arrears, no refund is necessary.
Clients may terminate their contracts without penalty within five business days of signing
the advisory contract.

Pension Consulting Fees

Each plan is individually priced based on the complexity of the services provided to the
plan.

Educational Seminar and Workshop Fees

RCAM does not charge for the educational seminars and workshops they offer.

Selection of Other Advisers Fees

If appropriate for clients, RCAM will occasionally direct clients to third-party investment
advisers (TPIA).

While RCAM does not receive a fee for this service, the third-party adviser will charge a
fee for their service as outlined below. These fees are not negotiable and will not exceed
any regulatory limits. The notice of termination requirements and payment of fees for
third-party investment advisers will depend on the specific adviser selected.

Depending on the client's specific needs and if appropriate, RCAM will direct clients to
Vanguard Personalized Indexing Management, LLC. The annual fee schedule is as
follows:

                   Total Assets w/TPIA              Third Party’s Fee

                    First $1 - $50,000,000                0.20%

                 $50,000,001 to $100,000,000              0.18%

                $100,000,001 to $500,000,000              0.15%

     Depending on the client's specific needs and if appropriate, RCAM will direct clients to
     Parametric Portfolio Associates. The annual fee schedule is as follows:

 Total Assets w/TPIA             RCAM’s Fee              Third Party’s Fee            Total Fees

  First $1 - $2,000,000              1.0%                      0.18%                     1.18%

$2,000,001 to $4,000,000            0.75%                      0.18%                     0.93%

 $4,000,001 AND UP                  0.50%                      0.18%                     0.68%

     B. Payment of Fees

     Payment of Investment Supervisory Fees

     Advisory fees are withdrawn directly from the client’s accounts with client written
     authorization. The timing of which fees are paid is dependent on the custodian which the
     clients account is held. Fees will be paid quarterly in arrears or in advance. Advisory fees
     may also be invoiced and billed directly to the client with payments due by the first
     business day of the quarter. Clients may select the method in which they are billed.

     For some clients that are plan sponsors or participants in a 401(k) plan, fees may be billed
     monthly based on the market value of the account at the time of that month’s billing. The
     actual scheduled day of billing will vary depending on the custodian chosen, but will take
     place around the same time each month.

     Payment of Financial Planning Fees

     Hourly Financial Planning fees are paid via check in arrears upon completion. Because fees
     are charged in arrears, no refund is necessary.

     Fixed Financial Planning fees are paid via check in arrears upon completion. Because fees
     are charged in arrears, no refund is necessary.

     At the option of the advisor, financial planning fees may be waived and considered part of
     the investment advisory services provided.

     Payment of Pension Consulting Fees
...

types of clients:

    ❖   Individuals
    ❖   High-Net-Worth Individuals
    ❖   Pension, Profit Sharing, and 401k Plans
    ❖   Retirement Plans

Minimum Account Size
There is an account minimum, $250,000, there is a plan minimum of $1,000,000 for corporate 401(k) plans.
Account minimums may be waived by the investment advisor, based on the needs of the client and the
complexity of the situation.