RJ Patterson Capital Investment Group Inc

ITEM 5: FEES AND COMPENSATION
Fee Schedule

Investment Management Services
RJP charges advisory fees for investment management services in accordance with each client’s
advisory agreement. Fees vary with type of investment strategy, the size of the account, the asset
class being managed, and the investment product. The maximum fees charged to an account
under a net fee arrangement are as follows:

                                                        Annual Fee Percentage
                       Assets Under Management
                                                           (paid quarterly)
                           Up to $5,000,000                     1.00%
                       $5,000,001 to $8,000,000                 0.90%
                       $8,000,001 to $10,000,000                0.80%
                           Over $10,000,000                  Negotiable

Once a client’s portfolio reaches a breakpoint, RJP bills all portfolio assets under management at
the lower rate. Advisory fees may be negotiated and therefore can be different from those listed
in the above schedule. RJP aggregates related account balances of clients within the same
household for purposes of achieving the advisory fee breakpoints listed above. We also manage
some family and related accounts at a reduced fee.

Third-Party Investment Management Fees
If we engage a third-party manager to manage all or a portion of your assets, the third-party
manager will receive an annual fee not to exceed 0.35% of your assets under management in the
TAMP, including cash and cash equivalents. This fee is in addition to the investment
management fee charged by RJP.

Financial Planning and Consultations
RJP will provide an estimate of the total fee required at the start of the relationship. The actual
time spent, and therefore the fee, may be lower or higher than the estimated amount. After work
has started, we will notify the client in advance if we anticipate that a flat fee will exceed or fall
short of our original estimate.

Financial Planning
RJP charges on an hourly or flat fee basis for financial planning and consultation services. The
total estimated fee, as well as the ultimate fee that RJP charges you, is based on the scope and
complexity of our engagement with you. Our hourly fees are $250.

RJ Patterson Group                                 10                                   Part 2A Brochure

Financial Consultations
As stated above in Item 4 – Advisory Business, Financial Consulting Services are typically
performed at no additional charge to Investment Management Service clients as an ancillary
service to the portfolio management they receive. However, in situations where a client does not
also engage us for Investment Management Services, we will bill on an hourly or fixed fee basis,
according to the terms of Financial Planning Services in this Item above.

Emerging Professional Program
RJP charges $250 per month for our Emerging Professional Program services. This fee is
negotiable at our discretion. As stated above in Item 4 – Advisory Business, Emerging
Professional Program fees are waived for Investment Management Service clients with portfolios
of $500,000 or more managed by RJP under separate engagement.

Billing Method

Investment Management Services
Our fees are calculated as a percentage of assets under management and billed quarterly in
advance based on the ending market value of the client’s portfolio on the last business day of the
calendar quarter. We adjust clients’ fees on a pro-rata basis for withdrawals removed from and
additions made to client accounts during the prior quarter when the total contributions and
withdrawals was $10,000 or more. The formula used for the calculation is as follows: (Total
Assets Under Management at Quarter-End) x (Annual Rate) / 4.

For new client accounts, the first payment is a pro-rata calculation that takes into consideration
the number of days remaining in the quarter and the initial value of the portfolio, including
inflows and outflows during the initial partial quarter. The formula used to calculate the initial
advisory fee would be as follows: (Result of Quarterly Calculation) x (Days Remaining in
Quarter) / (Total Number of Days in Quarter).

Clients authorize their independent custodian to automatically withdraw RJP’s advisory fee from
their account. Typically, the custodian withdraws advisory fees from the client accounts during
the first month of each quarter based on our instruction. All clients receive brokerage statements
from the custodian no less frequently than quarterly. The custodian statement will show the
deduction of our advisory fee. It is the client’s responsibility to verify the accuracy of the fee
calculation. The custodian will not determine whether the fee is properly calculated.

Participant Account Management
RJP’s management fees for held-away accounts managed through Pontera (also see Item 4 –
Advisory Business, above) will be charged to the client either by (1) debiting another client
brokerage account also managed by RJP; or (2) direct invoice. RJP is not affiliated with Pontera
in any way and receives no compensation from them for using their platform; however, RJP pays
a fee to Pontera for use of the service. Clients do not pay an additional fee for use of this service.

RJ Patterson Group                                11                                   Part 2A Brochure

Third-Party Investment Management Fees
TAMP fees for third-party managers are charged using the same method, frequency, and billable
market value as described in this section above under Investment Management Services. Fees for
partial billing periods will be prorated based on the number of days in the billing period that the
account was under the third-party manager’s management. If services are commenced during a
billing cycle, prorated fees for the initial billing period will not generally be collected in advance
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ITEM 7: TYPES OF CLIENTS
RJP offers investment, portfolio management, and planning services to a variety of clients
including individuals, high net worth individuals, retirement accounts, and corporations.