Deschutes Investment Consulting LLC

Item 5—Fees and Compensation

For DIC’s services a client will pay a fee based on either the market value of the Plan assets, or a
flat fee in accordance with the schedule of fees described and selected below unless otherwise
agreed to by both parties. Our fees are negotiable and may vary according to the facts and
circumstances including the scope of services to be provided, the duration of services and the
size of the client (number of employees, plan or individual assets, and other demographic
factors).

Under these services, clients may be charged a flat base fee plus a percentage of total Plan
assets, based on the sliding scale below. Therefore, clients will be charged a total fee that is the
sum of the base fee and the appropriate percentage fee for that portion of the Plan which falls
within the ranges specified below. We may receive fees directly from a client (plan sponsor or
individual), for providing any or all services. Fees may be paid on a one-time only or ongoing
basis, depending on the scope of the services, and the desired length of time that those
services will be provided.

Fee Structure
Asset-based Fee
Asset-based fees may be charged based on the market value of the plan assets and may range
from 0.05% - 1.25% of Plan assets, depending on the scope of the project and duration of
services.

Flat Fee
A flat fee may be charge ranging from $2,500 – $500,000 or more depending on the scope of
the project and duration of services.

Per-participant Fee
A per-participant fee may be charged ranging from $150 - $250 or more depending on the
scope of the project and duration of the services.

Hourly Fee
An hourly fee may be charged ranging from $250 - $350 per hour depending on the scope of
the project and duration of the services.

Fees are billed in advance and can be paid by the Plan or Plan Sponsor.

Clients may be paying fees different than those above as they are based on historical fee
schedules. Any fees paid in advance but are unearned shall be returned to the client prorated
to the date of termination.

Other Fees
The client will likely incur fees from brokerages, custodians, administrators and other service
providers. These fees are incurred as a result of managing a client account and are charged by
the service provider.

The amount and nature of these fees is based on the service provider’s fee schedule(s) at the
provider’s sole discretion. These fees are separate and distinct from any fees charged by DIC.

DIC may provide advice on mutual funds, ETFs, and other managed products or partnerships in
clients’ portfolios. Clients may be charged for the services by the providers/managers of these
products in addition to the service fees paid to DIC. The fees and expenses charged by the
product providers are separate and distinct from the management fee charged by DIC. These
fees and expenses are described in each mutual fund’s or underlying annuity fund’s prospectus
or in the offering memorandums of a partnership. These fees will generally include a
management fee, other fund expenses and a possible distribution fee. No-load or load waived
mutual funds may be used in client portfolios so there would be no initial or deferred sales
charges; however, if a fund that imposes sales charges is selected, a client may pay an initial or
deferred sales charge. A client could invest in a mutual fund or variable annuity or investment
partnership directly, without the services of DIC. Accordingly, the client should review both the
fees charged by the funds and the applicable program fee charged by DIC to fully understand
the total amount of fees to be paid by the client and to thereby evaluate the advisory services
being provided.

Item 7—Types of Clients

We generally provide advice to the following types of clients:

      Corporate pension and profit sharing plans

      Individuals, including their trusts, estates, individual retirement accounts (IRAs), and
       self-directed 401(k) accounts.
      Endowments and other charitable organizations
      Corporations and other businesses
Minimum Account Size

We generally require a minimum of $5,000,000 to open an institutional account (or group of
accounts). We reserve the right to waive these minimum requirements at our discretion.