SUBSCRIPTION AGREEMENT

Reynolds Blue Chip Growth Fund, Inc.

Wood Island, Third Floor

80 East Sir Francis Drake Blvd.

Larkspur, California 94939

Gentlemen:

The undersigned hereby subscribes to 10,000 shares of the Common Stock, $.01 par value per share, of Reynolds Blue Chip Growth Fund, Inc., in consideration for which the undersigned agrees to transfer to you upon demand cash in the amount of $100,000.

It is understood that a certificate or certificates representing the shares subscribed for shall be issued to the undersigned upon request at any time after receipt by you of payment therefor, and that said shares shall be deemed to be fully paid and nonassessable.

The undersigned agrees that the shares are being purchased for investment with no present intention of reselling or redeeming said shares.

Dated and effective as of this day of , 1988.

REYNOLDS CAPITAL MANAGEMENT

/s/ Frederick L. Reynolds

Frederick L. Reynolds, Sole Proprietor

ACCEPTANCE

The foregoing subscription is hereby accepted. Dated and

effective as of this day of , 1988.

By: /s/ Frederick L. Reynolds    

Frederick L. Reynolds, President

[CORPORATE SEAL]

Attest: /s/Andrea I. Schucker    

Andrea I. Schucker, Secretary