Red Mountain Financial Partners LLC

Item 5 – Fees and Compensation

Asset Management

The specific manner in which fees are charged by the firm is established in a client’s written
agreement between the client and Red Mountain Financial Partners – up to 1.5% of assets
under management. Clients can determine to engage the services of Red Mountain Financial
Partners on a discretionary or non-discretionary basis. The firm’s annual investment advisory
fee shall be based upon a percentage (%) of the market value billed quarterly in advance based
on the value on the last day of the previous quarter.

Clients will provide LPL Financial, as the qualified custodian, with written authorization to
deduct fees and pay the advisory fees to Red Mountain Financial Partners. The advisory fee is
paid directly by LPL Financial to Red Mountain Financial Partners (not an individual). Red
Mountain Financial Partners will then share the advisory fee with its advisors/associated
persons.

LPL Financial will send statements on a quarterly basis to clients of Red Mountain Financial
Partners showing the market values and all account disbursements including the amount of the
advisory fees paid to Red Mountain Financial Partners.
Clients may terminate the agreement without penalty for a full refund of fees within five
business days of signing the Investment Advisory Contract. Thereafter, clients may terminate
the Investment Advisory Contract generally with 30 days' written notice. If the advisory
agreement is terminated before the end of the quarterly period, client is entitled to a pro-rated

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refund of any unearned pre-paid quarterly advisory fee based on the number of days
remaining in the quarter after the termination date.

Financial Planning Services

We charge on an hourly or fixed fee basis for financial planning services. The total estimated
fee, as well as the ultimate fee that we charge you, is based on the scope and complexity of our
engagement with you but typically range from $100 - $5,000 per plan

Hourly Consulting Services

We charge on an hourly or fixed fee basis for consulting services. The total estimated fee, as
well as the ultimate fee that we charge you, is based on the scope and complexity of our
engagement with you. Our hourly fees range from $100 - $250.

Other Types of Fees & Expenses

Clients will incur transaction charges for trades executed in their accounts. These
transaction fees are separate from our advisory fees and will be disclosed by the firm that
the trades are executed through. Also, clients will pay the following separately incurred
expenses, which we do not receive any part of: charges imposed directly by a mutual
fund, index fund, or exchange traded fund which shall be disclosed in the fund’s
prospectus (i.e., fund management fees and other fund expenses).

Commissionable Securities Sales

LPL Financial charges brokerage commissions and transaction fees for effecting certain
securities transactions (i.e., transaction fees are charged for certain no-load mutual funds,
commissions are charged for individual equity and debt securities transactions). LPL Financial
enables us to obtain many no-load mutual funds without transaction charges and other no-load
funds at nominal transaction charges. LPL Financial commission rates are generally
discounted from customary retail commission rates. However, the commission and transaction
fees charged by LPL Financial may be higher or lower than those charged by other Custodians
and broker/dealers. Clients retain the right to direct their brokerage transactions at a firm other
than LPL Financial. Advisory fees are generally not reduced to offset commissions or
markups.

When dealing with investment advisory clients and services, investment adviser
representatives have an affirmative duty of care, loyalty, honesty and good faith to act in the
best interests ofits clients. Investment adviser representatives must fully disclose all material
facts concerning any conflicts of interest and avoid even the appearance of a conflict of
interest.

The Firm and IARs must abide by honest and ethical business practices including, but not
be limited to:

   •   Not inducing trading in a client's account that is excessive in size or
       frequency in view of the financial resources and character of the account;

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    •   Making recommendations with reasonable grounds to believe that they are
        appropriate based on the information furnished by the client;
    •   Placing discretionary orders onl y after obtaining client’s written trading
        authorization contained within the advisory agreement or via separate
        amendment;
    •   Placing non-discretionary orders only after receiving express client
        consent per order;
    •   Not borrowing money or securities from, or lending money or securities to a
        client;
    •   Not placing an order for the purchase or sale of a security if the security is not
        registered, or the security or transaction is not exempt from registration in the
        specific state;

The Firm and the IAR will:

    •   Allocate securities in a manner that is fair and equitable to all clients
    •   Not effect agency-cross transactions for client accounts

Clients retain the right to purchase investment products recommended by our firm through
other, non-affiliated broker dealers or agents.

When the firm’s representatives sell an investment product on a commission basis, the firm
does not charge an advisory fee in addition to the commissions paid by the client for such
product. When providing services on an advisory fee basis, Red Mountain Financial Partners
representatives do not also receive commission compensation for such advisory services.
However, a client may engage the firm to provide investment management services for an
advisory fee and separately purchase an investment product from an investment adviser
...

Item 7 – Types of Clients

The advisory services offered by Red Mountain Financial Partners are available for individuals,
individual retirement accounts (“IRAs”), banks and thrift institutions, pension and profit
sharing plans, including plans subject to Employee Retirement Income Security Act of 1974
(“ERISA”), trusts, estates, charitable organizations, state and municipal government entities,
corporations and other business entities.

However, the firm generally provides investment advice to high net worth individuals and
individuals as well as corporations. The firm is currently not working with other types of clients
or pursuing them as prospects but would not turn away any opportunities that may arise.