Red Lighthouse Investment Management LLC

Item 5 – Fees and Compensation

A    Red Lighthouse is a fee-only advisory Firm, meaning we are compensated only by our Clients
     and do not receive compensation or commissions from any other parties. We believe this
     method of compensation minimizes conflicts of interest.

     In consideration for our services, Clients pay us a fee quarterly in arrears, with payment due
     within 2 to 3 days from the date of the invoice. The fee will be equal to the agreed upon rate
     per annum, billed quarterly on a pro rata basis.

     Compensation to us for our services will be calculated in accordance with “Schedule A” of the
     Investment Advisory Agreement (“IAA”) which is entered into with each Client. We reserve
     the right to amend the fee but only upon 30-days prior written notice to each Client.

      STANDARD FEE SCHEDULE

                                     Schedule A

                    Assets Under Management                Annual Fee

                    First $1 million                         1.00%
                    Second $1 million                         0.90%
                    Third $1 million                          0.70%
                    Fourth $1 million                         0.50%
                    Fifth $1 million                          0.50%
                    Over $5 million                         Negotiable

     For purposes of determining value, securities, mutual funds, and other instruments traded on
     a market for which actual transaction prices are publicly reported shall be valued at the last
     reported sale price on the principal market in which they are traded

B    Our fees may be paid directly to us from the account by the custodian holding a Client’s assets
     upon submission of an invoice to the custodian showing the amount of fees, the value of the
     Client’s assets on which the fees are based, and the specific manner in which the fees are
     calculated. Payment of fees may result in the liquidation of Client’s securities if there is
     insufficient cash in the account. Copies of the fee invoices will be mailed to each Client as
     required. Clients bear the responsibility for verifying the accuracy of fee calculations.

C    In addition to our fee and any sub-advisor’s fees, Clients may be required to pay brokerage
     commissions, stock transfer fees, and other similar charges incurred in connection with
     transactions for their account. These fees are paid out of the assets in a Client’s account and
     are in addition to the investment management fees paid to us.

                         RED LIGHTHOUSE INVESTMENT MANAGEMENT, LLC
                                  Part 2A of Form ADV – Firm Brochure

D      The market value will be construed to equal the sum of the values of all assets in the account,
       adjusted by any margin debit. Fees for partial quarters at the commencement or termination
       of an Investment Advisory Agreement will be billed or refunded on a pro rata basis contingent
       on the number of days the account was open during the quarter. Quarterly fee adjustments
       for additional assets received into the account during a quarter or for partial withdrawals will
       also be provided to Client’s on the above pro rata basis.

E      We are a fee-only investment advisory Firm paid on a percentage of Client assets managed or
       a flat fee. This means that no supervised person associated with us receives or accepts any
       compensation for the sale of securities or investment products.

Rollover Education
In accordance with the U.S. Department of Labor’s Interpretive Bulletin 96-1, we primarily take an
educational approach when clients request information on rollovers. Under this approach, our role
will be limited only to providing you with general educational materials regarding the pros and cons
of rollover transactions. We will make no recommendation to you regarding the prospective rollover
of your assets and you are advised to speak with your trusted tax and legal advisors with respect to
rollover decisions. As part of this educational approach, we may provide you with materials discussing
some or all of the following topics: the general pros and cons of rollover transactions; the benefits of
retirement plan participation; the impact of pre-retirement withdrawals on retirement income; the
investment options available inside your Plan Account; and high level discussion of general investment
concepts (e.g., risk versus return, the benefits of diversification and asset allocation, historical returns
of certain asset classes, etc.). We may also provide you with questionnaires and/or interactive
investment materials that may provide a means for you to independently determine your future
retirement income needs and to assess the impact of different asset allocations on your retirement
income. You will make the final rollover decision.

Alternatively, as part of our investment advisory services to you, we may recommend that you roll
assets from your employer’s retirement plan, such as a 401(k), 457, or ERISA 403(b) account
(collectively, a “Plan Account”), to an individual retirement account, such as a SIMPLE IRA, SEP
IRA, Traditional IRA, or Roth IRA (collectively, an “IRA Account”) that we will manage on your
behalf. We may also recommend rollovers from IRA Accounts to Plan Accounts, from Plan Accounts
to Plan Accounts, and from IRA Accounts to IRA Accounts. When we provide any of the foregoing
rollover recommendations we are acting as fiduciaries within the meaning of Title I of the Employee
Retirement Income Security Act (“ERISA”) and/or the Internal Revenue Code (“IRC”), as applicable,
which are laws governing retirement accounts.

If you elect to roll the assets to an IRA that is subject to our management, we will charge you an asset-
based fee as set forth in the advisory agreement you executed with our firm. This creates a conflict of
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Item 7 – Types of Clients

We provide investment advice to the following types of Clients:

       Corporations
       Individuals
       Foundations
       Endowments
       Pension and Profit Sharing Plans
       Trusts, Estates or Charitable Organizations

Because each Client is unique, we encourage involvement in the planning and processes involved in
the management of their accounts. Such involvement does not have to be time consuming, however
we want our Clients to remain informed and have a sense of security about their investments.

We generally set a minimum account requirement of $2,000,000 as a condition for managing a Client’s
account. However, under certain limited circumstances we may waive this requirement.