Rexford Capital Inc

5) Fees and Compensation

      Our Fees

    Pricing for the Investment Management Service program is charged monthly in arrears based
    on assets under management at an annual, non-tiered rate of 0.9%-1.7%, based on the previous
    end-of-quarter balance or average daily balance. This range will depend on the size and
    complexity of the relationship. Fees may be negotiable.

    Pricing for the Wealth Advisory Service - which combines our Investment Management
    Service with continuous financial planning - is structured on a tiered annual fee schedule based
    on assets under management. Accounts under $500,000 are charged 2.50%, while those
    between $500,001 and $1,000,000 carry a rate of 2.15%. Accounts ranging from $1,000,001 to
    $3,000,000 are charged 1.80%, and those exceeding $3,000,000 are charged the lowest rate of
    1.75%.

    Rexford Capital Inc. does not have a minimum account size for services provided by the firm.
    If an account does not have enough cash, or a minimum cash level is required for an account,
    fees will be deducted from what we believe to be the most appropriate account.

    On a case-by-case basis, fixed fees are negotiated in response to the volume and complexity of
    ongoing work based on hourly billing rates and the expected amount of time our staff will
    spend on the work being performed. Fees are based on expected service time and range from
    $300-$500 per hour, depending on the service requested. Compensation is due upon receipt of
    invoice, quarterly in arrears. Either party may cancel the engagement at any time.

      How and When Compensation is Payable

    There are two fee structures that Rexford Capital employs:

    Legacy clients are charged monthly in arrears based on total assets under management,
    including accrued dividends at an annual percentage rate. Fees are billed quarterly in advance
    based on the previous end-of-quarter balance (EOQ), calculated on a 365/366-day basis. The
    quarterly fee is divided by three and debited in arrears from the clients' accounts on or near the
    last day of the month earned. The Fidelity statement will show the monthly fees debited. Initial
    fees will be prorated to cover the number of days from the date the account is funded until the
    end of the quarter and debited during the first full quarter.

    Some clients are charged on Average Daily Balances (ADB), based on a 365/366-day basis.
    Fees are calculated based on the average daily balance of total assets under management during
    each month. Our independent third-party portfolio reporting platform calculates the average
    daily balance each day using trade-date accounting and accrued dividends. We divide the

REXFORDCAPITAL.COM                                                                                       6

Form ADV 2A Disclosure Statement
Firm Brochure: SEC File No. 801-67511

    applicable annual rate by 365 (or 366 in a leap year) to arrive at a daily rate, sum those daily
    values across the month, and debit the total from the client's account monthly in arrears on or
    near the first day of the following month. Fees accrue daily. Initial fees will be prorated to
    cover the number of days from the date the account is funded until the end of the month and
    debited during the first full month.

    Thereafter, fees are based on the trade-date market value of the portfolio (including cash) as
    reported for the previous quarter's last monthly billed value. Fidelity's statements are as of
    settlement date. We believe that trade date accounting is more indicative of true account values.
    Trades executed but not settled are not reported as part of the portfolio value on the Fidelity
    monthly statement, where they are reported as "pending trades." We will adjust the value to
    include any trades done before the end of the quarter. The Billed Value of the account sums all
    securities, including stocks, bonds, options, and accrued dividends, and may be different than
    the Account Value.

    Rexford Capital has contracted with a third-party vendor to prepare and distribute our
    performance reports. The balances that our third-party reporting platform calculates may vary
    from the custodian's statement, depending on options, margin, dividends accrued, reporting
    dates, valuation methodologies of certain securities, or other factors.

    Dividends accrued: Our third-party reporting platform adjusts the gap between the day after the
    record date (ex-dividend date) and the payment of a dividend. When a company declares a
    dividend, the price of the company drops by the amount of the dividend. This undervalues the
    portfolio until the dividend is received. The third-party reporting platform back-dates dividends
    to comply with GIPS Recommendation 1.B.3, namely "Accrual accounting should be used for
    dividends (as of the ex-dividend date)." Additionally, GIPS requires accrual accounting to be
    used for fixed-income securities. The accrued value of the dividend will be added to the asset's
    market value each day from the ex-dividend date to the dividend payment date. Between the
    ex-date and the payment date, the market value of an asset will exceed the market value
    provided by the custodian. Market values provided by our third-party reporting platform and
    the custodian will match after the dividend payment date. Rexford Capital does not perform
    securities valuations; rather, we rely upon third-party vendors to provide this data.

      Other Fees and Expenses

    The Firm has negotiated several trading arrangements with Fidelity Institutional as custodian.
    Fidelity's pricing is listed below and is subject to change.

    If the aggregate family account size is less than $1,000,000, there is a discount in Fidelity fees
...

7) Types of Clients

    We provide investment advice to individuals, primarily retirees. Clients may also include
    pension and profit-sharing plans, trusts, corporations, and estates.

    We generally work best with clients who demonstrate disciplined spending and savings habits.
    We have tried to work with spendthrifts, but they seem to be incapable of living within their
    means. A certain amount of discipline is required on the part of the client to have a successful
    outcome.