Redwood Financial Planning LLC

Item 5 – Fees and Compensation
PORTFOLIO MANAGEMENT SERVICES

The Client will be assessed the following annual fees by RFP in receiving asset management
services. The following fees are negotiable between RFP and the Client; however, no fee may
exceed the stated level below listed.

    Assets                    Annual Fee
$0 - $249,999                  1.50%
$250,000 - $499,999            1.35%
$500,000 - $999,999            1.20%
$1,000,000 - $1,499,999        1.00%
$1,500,000 - $1,999,999        0.75%
$2,000,000 and Up              Negotiable

Fees are paid monthly or quarterly in advance. At the end of each month or quarter, fees are
calculated based on the gross value of the managed assets. This is then multiplied by the annual
fee percentage divided by 365 and multiplied by the days in the billing cycle. The fees will be
deducted directly from the Client’s account.

In addition to the annual fees stated above, the Client may incur additional charges from the
custodian maintaining the Client’s Account(s). Such fees include account maintenance fees,
safekeeping fees, administrative fees, transfer fees, and transaction expenses, such as ticket
charges and mailing and postage charges. Further, the product sponsor may charge fees, like
administrative fees. A complete description of charges can be obtained from RFP or by
reviewing the custodial agreement or prospectus for the custodian and product, respectively.

For Clients who maintain accounts at American Funds, the Client is charged .50% annually. Fees
are deducted quarterly in arrears by American Funds based on the value of mutual fund positions
as of the last business day of the calendar quarter. Fees deducted by American Funds are not
negotiable.

If the Form ADV Parts 2A and 2B were received less than 48 hours before the Client signed the
Investment Advisory Agreement, the Client has the right to cancel the agreement without penalty
within five business days of executing the agreement. For Clients terminating their relationship
in advance of the end of a billing cycle for which RFP has been paid, RFP will provide a pro-rata
refund of fees paid in advance for which services have or will not be rendered. For Clients
joining RFP in the middle of a billing cycle, the Client will be charged only on those days from
when an agreement was entered by the Client for RFP to provide services. In this case, RFP may
elect to charge the Client for the partial period at the time of the next billing cycle. Refer to Item
15 for a more complete discussion of the process of debiting fees.

THIRD PARTY ASSET MANAGEMENT SERVICES

The Client will be assessed annual fees in accordance to the fees established by the third-party
asset manager, unless otherwise negotiated. See the Form ADV for the third-party asset
manager for the percentage amount to be owed by Client, whether the fee is billed in advance or
arrears, policies concerning refunds, and the mechanism for how Clients remit fees owed for
third party asset management services. Total Client fees when utilizing a third-party asset
manager will not exceed 3% of the Client’s assets under management.

FINANCIAL PLANNING SERVICES

For financial planning services, RFP will charge hourly fees of $500 per hour, unless negotiated
at a lower rate or if the Client prefers and RFP agrees for the Client to be billed a flat project rate.
Flat project rates will not exceed $20,000. The determination of whether an hourly fee or flat
project fee will be based on mutual agreement by the Client and RFP. The fee is negotiable and
is due upon the delivery of a written financial plan. RFP will submit an invoice to the Client for
the amount owed.

Clients terminating financial planning services prior to the completion of a written financial plan
will be responsible for the payment of hourly fees accrued by RFP in its performance of financial
planning services. This is based on the hour(s) RFP calculates it has spent on providing the
services agreed upon by the Client. An invoice will be submitted by RFP for the amount owned
by the Client.

ADDITIONAL DISCLOSURE

Michael McLane, an advisor of RFP, provides various securities and brokerage products as a
Registered Representative of Purshe Kaplan Sterling Investments, Inc (“PKS”), a registered
broker-dealer. The receipt of commissions, including trails and distribution fees, for such activity
creates a conflict of interest and gives Michael McLane an incentive to recommend investment
products based on the compensation received. While it is unlikely that a Client receiving
investment management services of RFP will maintain an account through PKS subject to
investment management fees of RFP, the following actions have been undertaken to address this
conflict: 1) trails and distribution fees will not be received by Michael McLane on accounts
maintained through PKS in which RFP provides investment management services: 2) in selecting
mutual funds, only no load mutual funds shall be selected by Michael McLane for accounts
under management by RFP; and 3) Michael McLane shall not charge any commission beyond
any stated minimums required by PKS.

Item 7 – Types of Clients
RFP provides services to individuals, high net worth individuals, and pension/profit sharing
plans. RFP can provide services to other types of clients. RFP does not impose a minimum
investment amount for obtaining the services of RFP.