Resource 1 Inc

Item 5 – Fees and Compensation
Fee Schedule

Accounts managed under the Dynamic Service will be considered for immediate family members on
a household basis when calculating fees. The same consideration may be made for participants of
managed pension plans. Accounts under Strategic Service will be billed on an individual account
basis. Resource 1, Inc. may at their discretion, charge a lower fee. Client agreements will reflect
the actual fee schedule and will not be greater than the ADV schedule. Resource 1, Inc. fees are
negotiable.

Amount                            Annual Fee
Strategic Asset Allocation   (Minimum Fee of $1000.00)
First $250,000                   @ 1.0%
Next $250,000                    @ .75%
Next $500,000                    @ .50%
The remainder                    @ .35%

Dynamic Asset Allocation
Accounts under $500,000                 1.5%
Accounts $ 500,000 to $1,999,999        1.25%
Accounts $2,000,000 to $4,999,999       1.00%
Accounts $5,000,000 +                   .75%

Generally, a minimum account of $50,000 is required. This minimum can be waived for a short
period of time as assets are moved into the service.

Third Party Investment Manager Recommendations and Monitoring
Accounts under $100,000                Not Available
Accounts $ 100,000 up to $999,999 .75%
Accounts $1,000,000 to $4,999,999        .60%
Accounts $5,000,000 +                    .40%
Note that these are fees paid to Resource 1, Inc. which are in addition to the fees retained by the
third party manager and the platform. Note that Manning & Napier and Envestnet calculate and
withdraw the total management fee and platform fees, retain their part of the fee, pay the custody
fee and pay Resource 1, Inc. their fee. Resource 1, Inc, may charge a lower fee. Client agreements
will reflect the actual fee schedule and will not be greater than the ADV schedule.

Third Party Investment Managers

Where appropriate, Resource 1, Inc. will assist clients in selecting and monitoring Third Party
Investment Managers to manage client portfolios. In so doing, Resource 1, Inc. will make sure that
the client receives the ADV II, Privacy Policy and all other required notices for Resource 1, Inc. as
well as the Third Party Investment Managers ADV II, Privacy Policy and any other required notices.

There is no affiliation between Resource 1, Inc. and any Third Party Managers other than as a
possible alternative investment advisor. Resource 1, Inc. receives no benefit, other than the
disclosed selection and monitoring fee from Manning & Napier and Envestnet. Resource 1, Inc. will
receive quarterly fees in accordance with the Item 5 Fee Schedule, (paid quarterly in advance). In
the event of termination, any unearned fees shall be refunded pro-rata. Fees shall be calculated on
the value of the account quarterly. Investment Managers may modify their fee schedule upon at
least 30 days written notice to the client. Resource 1, Inc. and its investment advisor
representatives are not agents, representatives nor affiliates of these investment managers.

Resource 1, Inc. is not sharing in the fees of the investment managers, nor do we have any role in
determining the fees of each individual manager.

Investment Advisory and Participant Education Services to Qualified Plans

Plans under $4,000,000                   .50%
Plans $4,000,000 +                       At agreed upon price

Consultative fees limited in scope may be charged on an hourly basis, quoted and agreed upon in
writing prior to delivery of service. Qualified Plan advisory and education fees are paid through the
platform where the plan is custodied. Fees are taken pro rata out of plan assets on a quarterly basis
in arrears. Resource 1, Inc. has no discretionary authority on these plans, cannot affect any trades,
move any money or authorize any withdrawals or deposits. Advice is provided to the plan sponsor
and education is provided to plan participants. Resource 1 receives level fees on plan assets
regardless of the underlying investment choices.

More about Resource 1 Fees

All fees paid to Resource 1, Inc. for advisory services are separate from the fees and expenses
charged to shareholders of mutual fund shares by the mutual funds or by the investment advisor
managing the portfolios. Some funds charge a short-term redemption fee for assets which do not
remain in the fund a specified number of days. This short-term redemption fee comes out of the
trade proceeds and is paid to the fund. Decisions on whether to purchase and whether to hold for
the specified period are made with full knowledge of the effects of the short-term redemption fee.
All funds are purchased at NAV. If there are any transaction fees for the purchase or sale of a fund
under the Strategic or Dynamic Systems, that fee is paid by Resource 1, Inc. The Broker Dealer may

charge the client an annual account fee and/or a custodial fee or other administrative fees for
accounts, particularly IRA accounts. Clients may incur brokerage or other transaction costs. All
charges made by the Broker Dealer are outlined in the Brokerage Account agreement. A complete
explanation of expenses charged by each of the mutual funds is contained in each mutual fund’s
prospectus. Clients are encouraged to read the fund prospectus as well as the Brokerage Account
agreement. Client may also reference Item 12 regarding Brokerage Practices.

Resource 1, Inc. strives to purchase the least expensive mutual fund share class for its clients.
However, transaction charges and mutual fund surcharges impact our share class selection. Since
Resource 1, Inc. pays these costs on behalf of the client as part of our managed programs, we
sometimes select a more expensive share class to avoid or lessen these costs. This is a conflict of
interest since doing so is more expensive for the client. Specifically, if our models call for a
particular mutual fund and the transaction in question is an amount less than $100,000, we will
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Item 7 – Types of Clients
Resource 1, Inc. provides portfolio management services to individuals, high net worth individuals,
corporate accounts, corporate pension and profit-sharing plans, charitable institutions and
foundations. The minimum account size is $50,000.