Red Mountain Financial LLC

Item 5: Fees and Compensation

The rate for hourly financial planning services varies between $125 and $225 per hour depending upon
complexity of the service. Client is billed upon completion of service.

Fees for assets under management at custodian are computed on a quarterly, semi-annual or annual basis
depending on the signed client agreement. The fee excludes CD’s and cash. The annual percentage varies
between .25% and .75%. Fees are negotiable.

Red Mountain Financial, LLC will also utilize and offer as an option in certain client relationships a flat
annual fee that varies between $1,500 and $25,000 per year. On a percentage basis, the flat annual fee
amount will not exceed 0.75% of the total assets under management. After reviewing all aspects of a
prospective client’s situation, Red Mountain Financial, LLC prices the engagement based approximately
on the amount of time required to serve each relationship yearly. Fees may be more in particular cases
depending on complexities, number of accounts, portfolio size, or other unusual circumstances. Red
Mountain reserves the right to renegotiate in the event of a material change in the scope or volume of
services to be performed. Red Mountain reserves the right to charge a lesser investment advisory fee
based upon a client’s historical relationship to the firm, anticipated earnings capacity, dollar amount of
assets to be managed, related accounts, and account composition.

These fees are for advisory services only and do not include any transaction fees or commissions, which
may be charged separately by the custodian. See the section heading Brokerage Practices for more
information.

For Red Mountain the fee will normally be payable quarterly in arrears. Other billing periods are available
including semi-annually and annually. These will also be billed in arrears. For the percentage of assets
under management fee arrangement, payments are due and will be assessed on the first day after the end
of each quarter based on the value of the account assets under supervision as of the close of business on
the last business day of that quarter (or semi-annual or annual period as well). The fees for the flat fee
arrangement will be billed quarterly on the first day after the end of each quarter and will be ¼ of the
agreed upon annual advisory fee. For semi-annual and annual fee arrangements, the fee will be ½ of
agreed upon annual fee for semi-annual and full amount for annual payment arrangement.

                               Red Mountain Financial, LLC
Payment of fees may be paid direct by the client, or client may authorize custodian to deduct Red
Mountain advisory fees direct from the client account in accordance with invoices prepared and submitted
to custodian by Red Mountain. The client custodian will provide periodic account statements to the
client. Such statements will reflect all fee withdrawals by Red Mountain. The client custodian will not
determine whether the fee is properly calculated.

Client receives an informational invoice showing the amount of the fee, the value of the assets upon
which the fee was based, the time period and the specific manner in which the fee was calculated.

If client chooses to have fees deducted directly from their account, Red Mountain sends an invoice to the
client near the time Red Mountain sends the invoice to the custodian. The invoice will include the amount
of the fee, the value of the assets upon which the fee was based, the time period for the fee and the
specific manner in which the fee was calculated.

Not all custodians allow for direct fee deductions from client accounts so direct billing may be the only
fee payment option for some clients.

In addition to fees paid for advisory services with respect to clients' investments in mutual funds, clients
pay additional fees on the mutual fund investment because the mutual funds also pay advisory and/or
management fees to an investment advisor.

For Red Mountain, the percentage of assets under management and flat fee services will continue until
either party terminates the Agreement.

If termination occurs prior to the end of a quarter, the client will be invoiced for fees earned but unpaid on
a pro-rata basis.

Item 7: Types of Clients and Account Minimums

Red Mountain Financial, LLC. provides advisory services to individuals, trusts, estates, and business
entities.

Minimum account size is $50,000. Red Mountain Financial, LLC may waive this minimum in certain
circumstances.