Richey Advisors Inc

ITEM 5 - FEES AND COMPENSATION
Fee Schedule

Investment Management Services
RAI will charge an annual asset management fee for advice, monitoring, and quarterly status updates
based on a percentage of the market value of the portfolio, per the following schedule:

                          Account Value                           Annual Rate
                          The First $50,000                       1.25%
                          The Next $50,000                        1.20%
                          The Next $150,000                       1.00%
                          The Next $250,000                       0.75%
                          The Next $500,000                       0.65%
                          $1.0 Million and Above                  0.55%

All fees are negotiable under certain conditions such as when total household assets exceed $1,000,000.
RAI aggregates family accounts in the same household for purposes of calculating advisory fees. We
generally waive management fees for our personal and family accounts and in rare circumstances, as an
accommodation for some related accounts of our clients. Some accounts are under different fee
schedules honoring prior agreements, including legacy fee arrangements with former clients of Gregory
Advisors Incorporated.

RAI’s advisory fees are payable quarterly in arrears based on the average daily balance of the account.
The first payment is due after the first quarter under management. The formula used for the calculation
is as follows: Average Daily Balance x Annual Rate x (Days in Billing Period / 365), where the Average
Daily Balance is equal to the billable balance for each day in the previous quarter / the amount by the
total number of days in the billing cycle.

For advisory fee calculation purposes, a calendar quarter is a period beginning on January 1, April 1,
July 1, or October 1 and ending on the day before the next quarter. A day is any calendar day including
weekends and holidays. For new accounts, the number of days remaining in the quarter is the number
of calendar days following the date a new account is funded.

With client written authorization, RAI will withdraw RAI’s advisory fee from client accounts held at
Schwab and/or Altruist. Typically, Schwab and Altruist withdraw advisory fees from the client’s account
during the first month of each quarter based on our instruction. As a custodian, SEI generally calculates
and debits our fee for all client accounts managed under the SEI platform; however, RAI calculates the
advisory fees on portfolios with accounts held by more than one custodian. The statement clients
receive from SEI distinguish SEI’s and RAI’s fee. All clients will receive brokerage statements from their
custodian no less frequently than quarterly. The custodian statement will show the deduction of the
advisory fee.

Clients authorize RAI to bill an additional fee for assistance with their heirs, beneficiaries, or estate in
settling Client’s account(s) upon death or incapacitation of the client. The total amount billed is based
on the account type and number of beneficiaries but will never exceed $1,000 and may be reduced or

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waived at our discretion. Related services typically include opening beneficiary IRAs for qualified
accounts, providing letters of instruction for the beneficiaries and account custodians, and obtaining a
copy of the death certificate. RAI also typically consults with the beneficiaries about their options
regarding future distributions and taxation of any distributions. Non-qualified accounts may also require
opening additional accounts, in addition to writing letters of authorization, obtaining a death certificate,
and requesting any adjustment to tax-cost-basis of the assets held. In the event that the client’s
beneficiaries do not require or request assistance with settlement of accounts, no such fee will be
charged.

Either party may terminate the agreement upon thirty (30) days written notice to the other party. For
fees billed in arrears, the client will receive an invoice showing the advisory fees due for services
rendered and not yet paid. If applicable, any earned unpaid advisory fees will be due and payable upon
termination of the agreement.

Financial Planning Services
The initial consultation for Financial Planning Services is complimentary. Thereafter, RAI will calculate
the financial planning fee based on an hourly rate of $200. The total fees will be based on an estimate of
the overall hours needed to complete the plan and according to the nature and complexity of the plan,
report, or analysis. We impose a minimum fee of $500 for any financial plan and both parties will agree
to our fees in advance of RAI providing any services. Discounts may be appropriate where the assets
under management are very substantial and/or the amount of incremental work necessary to manage
such assets is minimal.

Financial Plan fees are due upon completion of the plan. RAI considers the planning phase of our
services to be complete, and the agreement terminated upon delivery of a financial planning project. In
the event that either the client or RAI wishes to terminate the financial planning agreement before
completion of the plan, either party may terminate the agreement at any time by providing written
notice to the other party. Upon notice of termination, RAI will provide the client with any work product
that has been developed up to the point of termination and an invoice for services provided through the
date of termination.

Independent Managers
In addition to the fees that RAI charges as per the above schedule, clients are also responsible for
separately paying the Independent Manager(s) investment advisory fees for each program utilized,
when applicable. These outside fees vary with each program and can be viewed in detail in each
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ITEM 7 - TYPES OF CLIENTS
RAI provides discretionary investment advisory and financial planning services to individuals, high net
worth individuals, and trusts and estates. In addition, we offer advisory services to employer-sponsored
retirement plans, and charitable organizations/endowments.

Account Requirements
RAI will recommend either Schwab Advisor Services™, a division of Charles Schwab & Co., Inc.
(“Schwab”), SEI Investments Distribution Co., (“SEI”), or Altruist Financial LLC (“Altruist”) for
custodial/brokerage of client accounts. SEI imposes a minimum account size of $50,000 and may
aggregate family accounts to meet the minimum requirement. For accounts under $50,000, SEI charges

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clients a quarterly account maintenance fee. Schwab does not have account minimums or account
maintenance fees. We generally do not recommend that clients with less than $250,000 in total
portfolio value custody their assets with SEI in order to avoid the quarterly custodial fees. However,
clients may still choose SEI for smaller accounts at their own discretion.

RAI’s management fee to the client does not depend on the custodial broker selected. However, we
must perform all trading functions for accounts held at Schwab and/or Altruist, and SEI generally
performs trading functions for accounts held at SEI resulting in an administrative savings to us. This
presents a conflict, giving us an incentive to recommend the custodial services of SEI Investments. RAI
makes custodial recommendations based on the best interest of each client.