Resource Management LLC

Item 5 Fees and Compensation

   A. INVESTMENT ADVISORY AND FINANCIAL PLANNING SERVICES
      The client can engage the Registrant on a negotiable, fee-only basis to provide discretionary
      and/or non-discretionary investment advisory services bundled with financial planning and
      consulting services. Registrant’s annual investment advisory fee typically ranges between
      negotiable and $50,000 dollars, but may be reduced at the sole discretion of the Registrant
      depending upon the level and scope of service(s) required and the professional rendering
      the service(s).

       Registrant’s annual investment advisory fee is negotiable and shall be based upon various
       objective and subjective factors, including but not limited to: the dollar amount of the assets
       placed under Registrant’s direct management, portfolio composition, the complexity of the
       engagement, the anticipated number of meetings and servicing needs; related accounts;
       future earning capacity; anticipated future additional assets; and the level and scope of the
       overall investment advisory services to be rendered and negotiations. Thus, similarly
       situated clients could pay diverse fees, and the services to be provided by Registrant to any
       particular client could be available from other advisers at lower fees. A very limited
       minority of Registrant’s clients pay an annual fee based strictly upon the amount of assets
       under management. For these clients, the annual investment advisory fee is generally one

    half of one percent (0.50%). Before engaging Registrant to provide investment advisory
    services, clients are required to enter into a discretionary or non-discretionary Investment
    Advisory Agreement, setting forth the terms and conditions of the engagement (including
    termination), which describes the fees and services to be provided, and the fee that is due
    from the client prior to Registrant commencing services. (Also See Item 7 below) All
    clients and prospective clients should be guided accordingly. ANY QUESTIONS:
    Registrant’s Chief Compliance Officer, D. Randolph Waesche, remains available to
    address any questions regarding Fee Differentials.

    RETIREMENT CONSULTING
    The Registrant also provides discretionary and/or non-discretionary pension/retirement
    plan consulting services where it charges a negotiable annual fee for Retirement Plan
    Consulting Services which generally ranges between negotiable and $20,000 depending on
    the scope and complexity of the services requested and the size of the plan. The terms and
    conditions of the engagement shall generally be set forth in a Retirement Plan Consulting
    Agreement between the Registrant and the plan sponsor.

    TAX PREPARATION SERVICES
    To the extent requested by the client, Registrant may determine to provide tax preparation
    services on a stand-alone separate flat-fee basis ranging between $1,500 and $5,000
    depending upon the complexity of the engagement. Registrant and the client will agree
    upon the specific fee before Registrant commences tax preparation services.

B. As a general practice, the Registrant bills clients for its services. When the Registrant bills
   the client directly, payment is due upon receipt of the Registrant’s invoice. However,
   clients may elect to have the Registrant’s advisory fees deducted from their custodial
   account. Both Registrant’s Investment Advisory Agreement and the custodial/clearing
   agreement may authorize the custodian to debit the account for the amount of the
   Registrant’s investment advisory fee and to directly remit that management fee to the
   Registrant in compliance with regulatory procedures. When the Registrant’s fees are
   deducted directly from the Client’s account, the Registrant shall deduct fees and/or bill
   clients annually in advance.

C. As discussed below, unless the client directs otherwise or an individual client’s
   circumstances require, the Registrant shall generally recommend that Schwab serve as the
   broker-dealer/custodian for client investment advisory assets. Broker-dealers such as
   Schwab charge brokerage transaction fees for effecting certain securities transactions (i.e.
   transaction fees are charged for certain no-load mutual funds, and fixed income securities
   transactions). In addition to Registrant’s investment advisory fee and brokerage transaction
   fees, clients will also incur, relative to all mutual fund and exchange traded fund purchases,
   charges imposed at the fund level (e.g. management fees and other fund expenses). When
   beneficial to the client, individual fixed-income and/or equity transactions may be effected
   through broker-dealers with whom Registrant and/or the client have entered into
   arrangements for prime brokerage clearing services, including effecting certain client
   transactions through other SEC registered and FINRA member broker-dealers (in which
   event, the client generally will incur both the transaction fee charged by the executing
   broker-dealer and a “tradeaway” fee charged by the withdrawing broker-dealer.

D. Registrant’s annual investment advisory fee shall be prorated and paid annually, in
   advance. The Registrant generally requires a minimum annual investment advisory fee of
   $3,500. The Registrant, in its sole discretion, may charge a lesser investment advisory fee

         based upon certain criteria (i.e. anticipated future earning capacity, anticipated future
         additional assets, dollar amount of assets to be managed, related accounts, account
         composition, negotiations with client, etc.). The Investment Advisory Agreement between
         the Registrant and the client will continue in effect until terminated by either party by
         written notice in accordance with the terms of the Investment Advisory Agreement. Upon
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Item 7           Types of Clients

         The Registrant’s clients generally include individuals, high net worth individuals,
         corporations and charitable organizations. The Registrant generally requires a minimum
         annual investment advisory fee of $3,500. The Registrant, in its sole discretion, may
         charge a lesser investment advisory fee based upon certain criteria (i.e. anticipated future
         earning capacity, anticipated future additional assets, dollar amount of assets to be
         managed, related accounts, account composition, negotiations with client, etc.).

         Please Note: As result of the above, similarly situated clients could pay different fees. In
         addition, similar advisory services may be available from other investment advisers for
         similar or lower fees. ANY QUESTIONS: Registrant’s Chief Compliance Officer, D.
         Randolph Waesche, remains available to address any questions that a client or prospective
         client may have regarding advisory fees.