Rahlfs Capital LLC

Fees and compensation…
These investment management and supervisory services are compensated as a percentage of
assets managed. Special projects are available at an agreeable fixed fee. This schedule of annual
fees is based on total value of assets with accrued income. Fees may vary if your investment
strategy is focused solely on fixed income securities, solely on equity securities, or in some
balanced combination of multiple asset classes. Fees are computed with 1/12th of the
below rates being applied to the prior month-end portfolio value as determined by your
independent custodian, and paid monthly in arrears after service has been provided to you.

Fee Billing Blocks All Equity             Balanced        All Fixed
First 1,000,000     0.90%                  0.90%           0.70%
Next 2,000,000      0.80%                  0.70%           0.50%
Next 2,000,000      0.70%                  0.60%           0.30%
Next 10,000,000     0.55%                  0.50%           0.25%
Amount over $15mm 0.40%                    0.35%           0.20%

This can be cumbersome, so clients almost always negotiate a single fixed percentage rate easily
applied to the value on your month-end valuation for ease of audit and understanding, and
such rate continues unless renegotiated. So, in many circumstances the negotiated fees may vary
from this schedule. Your custodial fees may be paid by the firm, but this may change in 2026
subject to the policies described by the banking institution having custody of your assets.

Fees are typically paid direct from your custodial account, or may be billed direct as you desire.
Outside brokerage commissions and trading costs are added to the transaction amounts for
trades. In the event of a termination, fees for the final month may be calculated proportional to
the number of days of service provided. Clients may terminate a contract without penalty
within five business days after signing a contract, if this requisite disclosure statement was not
delivered to the client at least 48 hours prior to entering any advisory contract with the firm.

Performance-based fees and side-by-side management…
Performance-based fees are not assessed on any account at this time.

                                                                ADV part 2 brochure (continued)

Types of clients…
The firm serves individuals, family trusts, estates, partnerships, corporations, and charitable
portfolios, as well as other investment advisors in a sub-advisory capacity. Clients are selective in
choosing a private investment manager. The firm is likewise selective as to the families it
provides service to, but does not necessarily impose a minimum dollar value of assets or other
measurable criteria for establishing an agreement.

Methods of analysis, investment strategy, and risk of loss…
We do not believe there is a known or knowable correct value for securities prices, such prices
being the product of individual value judgments and group behavior. We do believe
experienced investors are more likely able to judge relative value and group behavior than
inexperienced investors. Dislocations between short-term influences and equilibrium judgments
create opportunities which can sometimes be recognized in our view. Thus, our methods of
security analysis include macroeconomics, microeconomics, liquidity issues, investigative
accountings, evaluations of other experienced investors, technical price behaviors, cyclical
studies, credit and duration analysis, and other methods. This may include methods of
behavioral and social investment finance; such studies building on concepts of psychology
to further explain and understand investor behavior, the assignment of valuation level, and
events developing prospectively in the financial markets. Some of this analysis would be
considered traditional and some could be judged proprietary/unique to our perspective.

Sources of information may include corporate reports, prospectuses, regulatory filings,
research materials prepared internally and by others, timing algorithms, rating services,
press releases and media of all types, facility inspections, and any other proper public
content. Strategies and tactics may result in holding periods which last many years or more
rarely even as short as a few days, but strategies involving uncovered options or margin or
short sales would be unlikely, and unique only to a particular situation endorsed by an
individual client. Clients bear a significant risk of loss in strategies involving equity
securities and typically moderate risk of loss in strategies involving fixed income securities.
Such significant risks stem from changes in interest rates, inflation, economic activity,
currencies, credit quality, liquidity, specific security events, news media reports,
management of an entity, and shifts in market sentiment. Future returns are impacted by
prospective changes in volatility, taxes, management, costs, economic conditions, and other
factors. Performance evaluations can be an important component of analysis. However,
past performance is no guarantee of future success.