Vaughan and Company Securities Inc

Item 5      Fees and Compensation

                         INVESTMENT SUPERVISORY SERVICES ("ISS")

                         INDIVIDUAL PORTFOLIO MANAGEMENT FEES

 The fee will be based on the account asset value on the last day of the previous month. No
 adjustments will be made to the fee for any additions, withdrawals, appreciation or depreciation in the
 value of the securities held in the account during any monthly fee period.

Annualized Fee based on total value of Household assets under management (AUM). For the
purposes of Fee calculation, the following assets shall be excluded from the total AUM: (1) value of
any asset where the fee is waived (2) value of any 529 Education Portfolio assets (3) value of any
Retirement Plan Consulting asset.

Vaughan & Co. Securities, Inc.'s current fee schedule is as follows:

       Vaughan Asset Allocation Program Fee Schedule

                           Up to $500,000                              1.50%

                           Over $500,000 to $1,000,000                 1.40%

                           Over $1,000,000 to $2,000,000               1.30%

                           Over $2,000,000 to $3,500,000               1.20%

                           Over $3,500,000 to $5,000,000               1.10%

                           Over $5,000,000 to $7,500,000               1.00%

                           Over $7,500,000 to $10,000,000              0.80%

                           Over $10,000,000 to $15,000,000             0.60%

                           Over $15,000,000 to $20,000,000             0.40%
                           Over $20,000,000 to $30,000,000             0.30%

                           Over $30,000,000 to $40,000,000             0.25%

                           Over $40,000,000 to $50,000,000             0.20%

                           Over $50,000,000                        Negotiable

           Vaughan Dividend Growth Program Fee Schedule + Performance Fee*

                           Up to $500,000                              1.50%

                           Over $500,000 to $1,000,000                 1.40%

                           Over $1,000,000 to $2,000,000               1.30%

                           Over $2,000,000 to $3,500,000               1.20%

                           Over $3,500,000 to $5,000,000               1.10%

                           Over $5,000,000 to $7,500,000               1.00%

                           Over $7,500,000 to $10,000,000              0.80%

                           Over $10,000,000 to $15,000,000             0.60%

                           Over $15,000,000 to $20,000,000             0.40%
                           Over $20,000,000 to $30,000,000             0.30%

                             Over $30,000,000 to $40,000,000             0.25%

                             Over $40,000,000 to $50,000,000             0.20%

                             Over $50,000,000                        Negotiable

*The performance fee shall equal 10% of investment gains. When a decrease in value occurs, then the
performance fee is payable only after the account has appreciated above the net value after the
last performance fee was paid. In the event of an investment loss, performance compensation will only
be paid after the client has regained their investment losses.

In measuring the Managed Account client's assets for the calculation of performance-based fees,
Vaughan & Co. Securities, Inc. includes: for securities for which market quotations are readily available,
the realized capital losses and unrealized capital losses of securities over the period and, if the
unrealized capital appreciation of the securities over this period is included, the unrealized capital
depreciation of securities over the period. As such, we may receive increased compensation with regard
to unrealized appreciation as well as unrealized gains in the client's account.
The client must understand the performance-based fee method of compensation and its risks prior to
entering into a management contract with us.

PERFORMANCE-BASED FEES WILL ONLY BE CHARGED IN ACCORDANCE WITH THE
PROVISIONS OF REG. 205-3 OF THE INVESTMENT ADVISERS ACT OF 1940 AND/OR
APPLICABLE STATE REGULATIONS. PERFORMANCE-BASED FEES WILL NOT BE OFFERED TO
ANY CLIENT RESIDING IN A STATE IN WHICH SUCH FEES ARE PROHIBITED.

                            SELECTION OF OTHER ADVISERS FEES

Vaughan & Co. Securities, Inc. may direct clients to third-party investment advisers. Annualized Fee
based on total value of Household assets under management (AUM). For the purposes of Fee
calculation, the following assets shall be excluded from the total AUM: (1) value of any asset where
the fee is waived (2) value of any 529 Education Portfolio assets (3) value of any Retirement Plan
Consulting asset.

Vaughan & Co. Securities, Inc. will share fee with the third-party adviser according to fee schedule
below. The shared fees are negotiable and will not exceed any limit imposed by any regulatory
agency. The notice of termination requirement and payment of fees for third-party investment
advisers will depend on the specific third-party adviser selected.

Fees for selection of a third-party manager, are withdrawn directly from the client’s accounts by
Vaughan & Co. Securities, Inc. with client’s written authorization, and subsequently Vaughan & Co.
Securities, Inc. is permitted to collect and pay the third-party manager fee with client written
authorization.

The fee will be based on the account asset value on the last day of the previous month. No
adjustments will be made to the fee for any additions, withdrawals, appreciation or depreciation in
the value of the securities held in the account during any monthly fee period. Fees are paid monthly
in arrears.

Vaughan & Co. Securities, Inc.'s current fee schedule is as follows:

                           Vaughan Other Advisers Program Fee Schedule
...

Item 7     Types of Clients

Vaughan & Co. Securities, Inc. provides advisory services to the following types of clients:

           Individuals (other than high net worth individuals)

           High net worth individuals

           Pension and profit sharing plans (other than plan

           participants)

           Corporations or other businesses not listed above.