RDM Capital Associates Inc

Item 5: Fees and Compensation

       A.      Fees Charged

       Asset Management

       All clients will be required to execute an Investment Management Agreement that will describe the
       type of management services to be provided and the fees, among other items. Clients are advised that
       they may pay fees that are higher or lower than fees they may pay another advisor for the same services,
       and may pay lower fees for comparable services from other sources. Clients are under no obligation
       at any time to engage, or to continue to engage, RDM for investment services.

       RDM provides investment advisory services for an annual fee based upon a percentage of the assets
       being managed by RDM. This asset based fee typically varies between 0.45% and 2% depending on
       the amount of assets under management and complexity of the Client account. RDM typically charges
       1.5% of assets under management for equity-based accounts and for fixed income-based accounts
       0.45% of assets under management.

       Fees are negotiable, and may be higher or lower than this range, based on the nature of the account.
       Factors affecting fee percentages include the size of the account, complexity of asset structures, and
       other factors.

       B.      Fee Payment

       Investment advisory fees will generally be debited directly from each client’s account. The advisory
       fee is paid quarterly, in advance, based upon the balance of the accounts managed by RDM on the last
       day of the previous billing period as valued by the custodian of your assets. To the extent there is cash
       in your account, it will be included in the value for the purpose of calculating fees. Once the calculation
       is made, we will instruct your account custodian to deduct the fee from your account and remit it to
       RDM. While almost all of our clients choose to have their fee debited from their account, we will
       invoice clients upon request and permit payment of fees by check payable to RDM.

For the initial quarter, the fee is calculated on a pro rata basis, meaning clients will pay a fee based on
the number of days left in the quarter in which they engage RDM. In the event the advisory agreement
is terminated, the fee for the final billing period is prorated through the termination date and the
outstanding or unearned portion of the fee is refunded to the client, as appropriate.

Clients whose fees are directly debited will provide written authorization to debit advisory fees from
their accounts held by a qualified custodian. Each month, clients will receive a statement from their
account custodian showing all transactions in their account, including the advisory fee. Clients should
carefully review their statements, including the fee amounts, and should contact RDM with any
questions.

C.      Other Fees

There are several other fees that can be associated with holding and investing in securities. You will
be responsible for fees including but not limited to transaction fees for the purchase or sale of a mutual
fund, Exchange Traded Fund or stock. These fees are charged by your account custodian. RDM does
not share in these fees. Further, internal expenses of mutual funds will not be included in management
fees, as they are deducted from the value of the shares by the mutual fund manager. When selecting
mutual funds that have multiple share classes, RDM will take into account the internal fees and
expenses associated with each share class. It is RDM policy to purchase the lowest-cost share class
available to us, absent circumstances that dictate otherwise. For a complete discussion of expenses
related to each mutual fund, you should read a copy of the prospectus issued by that fund. RDM can
provide or direct you to a copy of the prospectus for any fund that we recommend to you.

Please make sure to read Item 12 of this informational brochure, where we discuss broker-dealer and
custodial issues.

D.      Termination

Once your notice of termination is received, we will assess pro-rated fees for the number of days
between the end of the prior billing period and the date of termination to be paid in whatever way you
direct (check, wire). RDM will cease to perform services, including processing trades and
distributions, upon termination. Assets not transferred from terminated accounts within 30 (thirty) days
of termination may be “de-linked”, meaning they will no longer be visible to RDM and will become a
retail account with the custodian.

If you terminate our relationship before the completion of the financial plan, any unearned fees will
be returned to you on a pro rata basis.

E.      Compensation for the Sale of Securities.

This is not applicable. Neither RDM nor its advisory affiliates receive compensation or commissions
for the sale of securities.

Item 7: Types of Clients

       Clients advised may include individuals, families, trusts, charitable organizations and foundations,
       pensions and corporations. RDM does not impose a stated minimum fee or minimum portfolio value
       for starting or maintaining an investment advisory account.