Rational Investment Management LLC

Item 5: Fees and Compensation

A. Fee Schedule

Investment Supervisory Services Fees

Fees for portfolio management services are typically calculated as an annual percentage
of managed assets, paid quarterly in arrears based on the average value of all assets in
the client’s account for that quarter. Fees are generally debited from client accounts by
the account custodian after the end of each quarter. Clients may request to be billed
directly. The fee schedule is:

       1.00% annually on the first $1,000,000
       0.75% annually on the next $1,000,000
       0.50% annually from $2,000,001 to $10,000,000
       0.25% thereafter

       These fees are computed on a “blended rate” basis. For example, an account of
       $3,000,000 will be charged 0.75% per year (1% on the first $1,000,000, 0.75% on the next
       million, and 0.50% on the next million).

       These fees are negotiable depending upon the needs of the client and complexity of the
       situation, and the final fee schedule is attached as Schedule A of the Investment
       Management Agreement. Clients may terminate their contracts with written notice.

       Because fees are charged in arrears, no refund policy is necessary. If a client account is
       terminated within 30 days of signing the Investment Management Agreement, any
       advisory fees are refunded.

       Lower fees for comparable services may be available from other sources.

       B. Payment of Fees

       Payment of Investment Supervisory Fees

       RIM typically deducts advisory fees directly from the client’s account, although it may
       invoice and bill a client directly on request. Fees are paid quarterly in arrears.

       C. Clients Are Responsible For Third Party Fees

       Clients are responsible for the payment of all third-party fees, such as mutual fund fees
       and trade commissions. Those fees are separate and distinct from the fees charged by
       RIM. Please see Item 12 of this brochure regarding broker/custodians.

       D. Prepayment of Fees

       RIM collects its fees in arrears. It does not collect fees in advance.

       E. Outside Compensation for the Sale of Securities to Clients

       Neither RIM nor its supervised persons accept any compensation for the sale of securities
       or other investment products, including asset-based sales charges or services fees from
       the sale of mutual funds.

Item 7: Types of Clients

RIM generally provides management supervisory services to the following types of clients:

          v Individuals
          v High-Net-Worth Individuals

Minimum Account Size

 $1,000,000 is the minimum account size, but in special situations, exceptions may be made.