Regency Investment Advisors Inc

5. Fees & Compensation
INVESTMENT SUPERVISORY/INDIVIDUAL PORTFOLIO MANAGEMENT AND ‘OTHER’ PORTFOLIO MAN-
AGEMENT SERVICES FEES

Regency’s annual fees for Investment Supervisory Services and “other” non-continuous portfolio man-
agement services are based upon a percentage of assets under management and generally range from
0.60% to 1.20%. Regency’s fee schedule is identified in the contract between the advisor and each client.

A minimum of $250,000 of assets under management is required for investment supervisory services.
There is a minimum of $1,000,000 of assets under management for retirement plans. We reserve the right
to waive this minimum and fees will be negotiated individually based on the work and services provided
and disclosed in our contract. If a retirement plan requires more than our standard set of services, we may
deviate from our normal fee schedule; the fee would be disclosed in our contract.

There is generally a $50,000 minimum account balance for active management on College 529 Plans.
However, Regency is willing to serve as Advisor on accounts with a smaller balance if the client has a min-
imum account balance of $250,000 in investment supervisory assets. Regency doesn’t generally provide
active management for College 529 Plan accounts with balances less than $15,000. In that case, the client
can choose amongst Target Date Funds. Regency will not charge a management fee for accounts invest-
ed in Target Date Funds. For both actively managed 529 accounts and accounts invested in Target Date
Funds, Regency will not report performance, but rather, the account performance will be stated on the
custodian’s quarterly statement. It is recommended that the client carefully review their quarterly state-
ment from the custodian and notify Regency of any discrepancies.

A minimum of $250,000 of assets under management is required for “other” non-continuous portfolio
management service.

Part 2A of Form ADV                                                                                         6

These account minimums may be negotiable under certain circumstances. Ongoing account manage-
ment fees are generally payable quarterly, in advance, based on the market value of the assets on the last
business day of the previous quarter. Account management fees may be directly deducted from your ac-
count(s) on a quarterly basis. For retirement plans with a third-party recordkeeper, the recordkeeper may
calculate and deduct Regency’s fee or instruct Regency to deduct said fee. This fee may be calculated on a
monthly or quarterly basis, in arrears, based on the value of the managed assets as of the close of business
on the last business day of the preceding month/quarter and number of days in the period. Please refer to
the specific services agreement for further details.

Limited Negotiability of Advisory Fees: Although Regency has established the fee schedule mentioned
above, we retain the discretion to negotiate alternative fees on a client-by-client basis. The specific annual
fee schedule is identified in the contract between the adviser and each client.

We may group certain related client accounts for the purposes of achieving the minimum account size re-
quirements and determining the annualized fee. Discounts, not generally available to our advisory clients,
may be offered to family members and friends of associated persons of our firm.

FINANCIAL PLANNING FEES

Regency’s Financial Planning fee is determined based on the nature of the services being provided and
the complexity of each client’s circumstances. All fees are agreed upon prior to entering into a contract
with any client.

The fee charged to the client is either hourly (generally $200 to $300 per hour) or fixed and may be nego-
tiated. Our hourly fee varies based upon the nature of services and the individual performing the services,
including their experience and training. There are no commissions received by Regency or by individuals
working for Regency. Fees may be waived if approved by management. Although the length of time it
will take to provide a Financial Plan will depend on each client’s personal situation, if an hourly fee will be
charged, we will provide an estimate for the total hours at the start of the advisory relationship.

Financial Planning Fee Offset: Regency reserves the discretion to reduce or waive the hourly fee and/or
the fixed fee if a financial planning client chooses to engage us for our investment management services.
The client is billed after the project is complete.

GENERAL INFORMATION

Termination of the Advisory Relationship: A client agreement may be canceled at any time, by either
party, for any reason upon notice to any of our staff. As disclosed above, certain fees are paid in advance of
services provided. Upon termination of any account, any prepaid, unearned fees will be promptly refunded.
In calculating a client’s reimbursement of fees, we will prorate the reimbursement according to the num-
ber of days remaining in the billing period. If you don’t automatically receive a refund upon termination,
please call Marci Deck at 559-438-2640, immediately.

Mutual Fund Fees: All fees paid to Regency for investment advisory services are separate and distinct from
the fees and expenses charged by mutual funds and/or ETFs to their shareholders. These fees and expens-
es are described in each fund’s prospectus. These fees will generally include a management fee, other fund
expenses, and a possible distribution fee. If the fund also imposes sales charges, a client may pay an initial
or deferred sales charge. A client could invest in a mutual fund directly, without our services. In that case,
the client would not receive the services provided by our firm which are designed, among other things, to
assist the client in determining which mutual fund or funds are most appropriate to each client’s financial
...

7. Types of Clients
Regency provides advisory services to the following types of clients:

    •   Individuals (other than high-net-worth individuals)
    •   High-net-worth individuals
    •   Trusts
    •   Pension and profit-sharing plans (other than plan participants)
    •   Charitable organizations
    •   Corporations or other businesses not listed above

As previously disclosed in Item 5, our firm has established certain initial minimum account requirements,
based on the nature of the service(s) being provided. For a more detailed understanding of those require-
ments, please review the disclosures provided in each applicable service.

Part 2A of Form ADV                                                                                          8