Hauser Retirement Solutions 2 LLC

Item 5. FEES AND COMPENSATION
 Investment management and advisory fees are HRS’s sole compensation. We receive no fees or
 compensation in connection with the purchase or sale of securities for other investment products on behalf
 of our clients, including such things as brokerage commissions, asset-based sales changes, or service fees
 from the sale of mutual funds. Some mutual funds pay 12b-1 fees to third parties for distribution-related
 services and fees for administrative services. These 12b-1 and administrative fees are reflected in the net
 asset value of a mutual fund’s shares. These types of fees are typically deducted directly from plan
 participants’ investments, and the plan trustee(s) may determine to utilize these fees to compensate
 service providers to the plan. When providing discretionary advisory services, HRS utilizes no-load mutual
 funds and/or retirement plan class shares that do not carry any sales load, revenue share or 12b-1 fees, when
 available. When providing non-discretionary advisory services HRS provides to the plan trustee(s)
 recommended mutual funds to be utilized and the share class or classes available for those mutual funds.
 HRS’s investment management and advisory fees are not dependent upon the share class of a mutual fund
 utilized by a plan client. However, plan trustee(s) will at times determine to utilize mutual fund share classes
 that pay a sales load, revenue share or 12b-1 fees, even in instances when other share classes are available.
 The plan trustee(s) will utilize these fees to pay HRS’s investment management and advisory fees, as well
 as the fees charged by other services providers to a plan client. At no time does HRS receive any fees or
 payments that are greater than, or in addition to, the investment management and advisory fees set forth
 in each written engagement agreement with a plan client.
 The specific manner in which we charge fees is established in the written engagement agreements that we
 enter into with our clients. All fees are subject to negotiation. Our fees are:
    •    Based on the market value of plan assets under management,
    •    calculated and paid on a monthly or quarterly basis, in arrears, as of the end of applicable period,
    •    pro-rated for any assets that we manage for less than a full calendar quarter, and
    •    vary by the level of service each client has chosen.

    HRS does not deduct client fees. The plan administrator makes the fee calculation and sends HRS the
    fee. Thus, HRS does not have the ability to deduct fees. The methodology for fee deduction will be
    clearly outlined in the Client Engagement Agreement.

The advisory fees paid to HRS represent fees for management of your retirement plan and are separate
from any other fees and expenses charged by other parties; therefore, the advisory fees shown in this
Brochure represent only the fees paid to HRS and do not reflect operating expenses and other costs charged
by the mutual funds, or other products a client may be invested in and these expenses and costs are
ultimately borne by the client, as the shareholder. In addition, mutual funds may charge contingent deferred
sales charges (“CDSC”) on withdrawals. HRS is not responsible for any CDSC charges incurred through
HRS’s management of a client’s portfolio or for any transaction costs incurred while managing a client’s
assets. A complete description of all fees and expenses of the securities in which a client is invested is
contained in the relevant prospectuses. HRS also advises clients to carefully review their custody agreement
with their custodian as there may be custodial fees and other service fees charged to such clients by such
custodians. See Item 12 below entitled “Brokerage Practices.”

The same or similar investment advisory services may be available from other investment advisors for a
lower fee. The advisory fee may be more or less costly than paying for the services separately, depending
upon the investment advisory fees charged, , the level of brokerage and other fees that would be payable
if the client obtained the services available under the program individually.

HRS’s investment advisory services and associated fees are as follows:

  A. Retirement Plan Investment Management Services
  I. INVESTMENT    AND FIDUCIARY CONSULTING SERVICES AND NON-FIDUCIARY SERVICES FEES*
  The annual fee will be invoiced monthly or quarterly, in arrears, based on the market value of the
  funds under advisement on the last business day of the previous month or quarter and will range from
  15 to 100 basis points based on the value of plan assets. The minimum annual fee is $7,500.
  II. RETIREMENT    PLAN 3(21) INVESTMENT ADVISORY FEES*
  The annual fee will be invoiced monthly or quarterly, in arrears, based on the market value of the funds
  under advisement on the last business day of the previous month or quarter. This fee is in addition to
  the Consulting Services Advisory Fees noted above, the fee for 3(21) services will not exceed 15 basis
  points.

  III. RETIREMENT   PLAN 3(38) INVESTMENT ADVISORY FEES*
  The annual fee will be invoiced monthly or quarterly, in arrears, based on the market value of the funds
  under advisement on the last business day of the previous quarter. This fee is in addition to the
  Consulting Services Advisory Fees noted above, the fee for 3(38) services will not exceed 30 basis points.
*All fees may be negotiated based on the specific situation of the plan and the asset levels and
expected growth in the assets. In some circumstances, when certain one-time projects or work exceeds
the scope of fee related work, HRS and clients may negotiate a separate hourly or per project rate for
certain plan related project work. Depending on the services requested and scope of the project,
hourly rates can range between $75.00 and $100.00 per hour.

  IV. OTHER FEE ARRANGEMENTS
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Item 7. TYPES OF CLIENTS
    HRS provides investment management services to retirement plans. There are currently no requirements
    for opening or maintaining account minimums. See Item 5 for additional annual fees associated with
    certain services.

Item 8. METHOD OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS
    HRS follows a disciplined research and evaluation process to determine appropriate investments for each
    client’s investment line-up. HRS has the expertise and analytical tools to choose from thousands of funds
    and fund families with a wide range of investment managers. This provides HRS with the flexibility to
    analyze leading investments in each asset class and develop investment strategies for client plans.
    Investing in securities involves risk of loss that clients should be prepared to bear.
    HRS’s investment research process seeks to identify investment managers that are more consistent long-
    term performers in their areas of expertise. Using both quantitative and qualitative analysis, HRS screens
    in seeking to identify money managers across a broad spectrum of asset classes. HRS’s objective is to
    create a roster of investment managers to play specific roles in our clients’ plan portfolios.

    HRS’s selection process employs a bottom-up approach, concentrating first on each specific asset class
    and then on the many investment managers that specialize there. Through a series of evaluation steps,
    HRS narrows our selection to those investment managers that HRS believes may meet a client’s
    Investment Policy Statement.

    HRS’s research team begins with a review of an investment manager’s rate of return, relative risk
    measurements, and management expenses as compared to its peer group. HRS’s focus is on investment
    managers that have demonstrated a consistent, long-term track record. Going beyond the numbers,
    HRS’s investment research team also considers a manager’s reputation for ethical practices, style
    consistency, and administrative infrastructure.

    Listed below are samples of criteria tracked in HRS’s screening process.

    Quantitative Factors:
    1. Returns vs. peer funds: 1, 3, 5 & 10 year total returns

2. Consistency of returns
3. Volatility measures: Standard Deviation of return
4. Return to Risk measures: Sharpe Ratio
5. Expense ratio analysis
6. Portfolio turnover
7. Style consistency

Qualitative Factors:
1. Management tenure and personnel
2. Investment process / decision making procedures
3. Fiduciary matters
4. Information availability

The quantitative screening of each Morningstar fund category significantly reduces the number of potential
investments. From there, the qualitative standards are applied to create a client’s fund lineup as well as building
a “bullpen” of secondary fund choices should the preferred funds close to new investors or fall in our ranking
system for any reason. For important information pertaining to the risks associated with investing, please
review the section titled “Risk Factors” at the end of this section.

Risk Factors
Client understands, acknowledges and agrees that no assurance has been or can be given to client
that any client will achieve his or her investment objectives by accepting or implementing in whole or
in part any investment strategy and/or allocation or any specific recommendation by HRS to purchase
or sell any security or other investment.

Securities markets fluctuate substantially over time. All investments in securities include a risk of loss of
money invested (principal) and any unrealized profits (i.e., profits in the account that have not been
liquidated, sometimes called “paper profits”). In addition, performance of any investment is not
guaranteed. HRS cannot guarantee any level of performance or that clients will not experience a loss of
account assets.

HRS does not represent, warrant or imply that the services or methods of analysis used by HRS can or will
predict future results, successfully identify market tops or bottoms, or insulate clients from losses due to
major market corrections or crashes. No guarantees can be offered that clients’ goals or objectives will
be achieved. Further, no promises or assumptions can be made that the advisory services offered by HRS
will provide a better return than other investment strategies.

The managers of the mutual funds, ETFs and collective investment trusts (“CITs”) that HRS clients may
utilize may employ the same or substantially similar investment strategies, and may hold similar portfolios
of investments, in other investment products or programs that they manage, such as managed account
programs. Such other products or programs may be available through HRS or elsewhere. The costs and
the services relating to the other products or programs in which these strategies are offered will differ.

There is no assurance that the no-load mutual funds, select load-waived mutual funds, ETFs and CITs
will perform in any particular manner. Past performance of any mutual fund, ETF, CIT or asset class, is
no guarantee of future performance. Clients should carefully read the prospectus of each mutual fund
and ETF before they invest.

Client has been informed, understands and acknowledges that unless stated otherwise in a supplemental
disclosure document related to a specific investment or program, the investments in a client’s program
account are not insured by the Federal Deposit Insurance Corporation (FDIC), are not deposits with or

    the obligation of or guaranteed by HRS or the custodian or any of their affiliates, are subject to
    investment risk, including possible loss of principal invested, and that past performance is no guarantee
    of future results.

    Risks associated with investing in mutual funds: Equity based mutual funds are subject to risks similar to
    those of stocks, including market risk, which is the risk that investment returns will fluctuate and are
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