Risk Management Group LLC

Item 5. Fees and Compensation

Investment Management Services
The annual fee for investment management services is generally a percentage of the client’s assets under
the firm’s management. This is our standard fee schedule:

First $2,999,999                       1.0%
$3,000,000 – $4,999,999                0.9%
Over $5,000,000+                       0.7%

These are marginal rates. For example, an account valued at $3,500,000 would pay, under the fee
schedule above, 1% on the first $2,999,999, plus 0.9% on the next $500,000. The methodology for
calculating the value of AUM for purposes of the fee calculation may be different than the methodology
used to calculate Regulatory Assets Under Management. These fees are negotiable at the sole discretion
of the firm. The fee to be charged each client will be stipulated within each client’s advisory agreement
and will apply to all assets of the client or, if stipulated in the agreement, the client's household.

Although RMG does not generally advise that clients use margin, if the client does use margin, assets
included in clients’ margin balances are included when calculating RMG's advisory fees. In other words,
advisory fees are calculated on the value of the assets in the account, and not on the net liquidating value
of the account. Clients who use margin will also pay margin interest on the same assets.

We generally require clients to instruct the custodian (SEI) to debit our fees from the client’s account. In
special cases, in our sole discretion, we will agree to invoice clients for the fee due.

Clients are billed on a monthly basis, in arrears, based on the market value of the client’s assets on the
last day of the prior month as reflected in the custodian’s advisory fee calculation system. These values
may differ from the values shown on the custodian's statements of the accounts, generally due to the
timing of posting of transactions, deposits, withdrawals, distributions and dividends. When a cash
position is used as a strategy and a certain portion of the client’s account is allocated to cash, an advisory
fee will be charged on the cash position unless we determine otherwise. For any client who engages the
Firm during a month, the investment advisory fee is assessed pro rata from the inception date of the
account(s) to the end of the month. In addition to our firm's investment advisory fees, the client will pay
all direct and indirect expenses incurred for the client or disbursements made on behalf of the client,
including custodian’s charges for commissions, transaction fees, service fees, asset-based custody fees,
and all other fees described in the custodial agreement. Clients will also incur charges imposed by other
third-parties in connection with the client's investments, including mutual fund fees, confirmation fees,
surcharges, fees charged by third party money managers or sub-account managers, clearing, custody and
other transaction charges and service fees, and IRA and Qualified Retirement Plan fees.

SIMC and its affiliates earn fees from the SEI Funds and SEI ETFs, which costs are indirectly borne by
Clients invested in these models. As a result, SIMC does not charge RMG or its clients a direct fee for
the use of the SEI Asset Allocation Models. In addition, SEI Private Trust Company (“SPTC”), the
custodian to the Client and an affiliate of SIMC, will not charge a custodial platform fee on Client assets
invested in SEI mutual funds, SEI ETFs and third-party non-transaction fee (NTF) mutual funds. Clients
participating in the SEI Sub-Advised Program will not pay custodial platform fees, but, the Client will
pay an annual advisory fee to SIMC as sub-advisor. A complete description of SEI’s advisory services
and fees, custody fees and account minimums will be disclosed in the SEI onboarding documents
provided to you by RMG before or at the time the account is established. Each billing period, SEI sends
clients an account statement that includes details of the direct fees charged to the client's account.

Clients who engage us to provide investment management of variable annuity or insurance sub-accounts
will pay all internal costs, fees and expenses, including any exchange fees and surrender charges,
imposed by the insurance company. RMG does not share in these fees charged by the insurance
company. Clients should refer to the prospectus of the variable annuity and/or variable life contract for
more details about the insurance company’s management expenses and any exchange or surrender fees.

Financial Planning Services
General financial planning is included in the services we provide to clients who engage us for
investment management services.

When we provide financial planning services on a stand-alone basis, we generally charge a flat fee,
which we determine by estimating the number of hours to be spent, the complexity of the engagement,
and other factors we deem relevant. The fee is generally a range of $3,500 to $10,000, but in some cases
may be included as the part of ongoing investment advisory fees. The specific fee is set forth in the
advisory agreement with the client. We reserve the right to increase the fee if the scope of work expands
or if the plan requires significantly more work than anticipated. If an agreement is terminated prior to the
service being delivered, RMG will bill for work completed unless RMG determines, in its discretion, not
to do so. In the case of prepayment of fees, the refund will be based upon the percentage of work
completed.

Divorce Planning, Divorce Mediation and Consulting Services

Divorce-related planning or mediation or other consulting work is charged hourly. Ms. Lapin charges
$500 per hour. Support staff time is billed at $300 per hour.
We require clients to pay a retainer, in advance, against the fees and costs of ongoing service. We will
issue invoices monthly and will charge our fees and costs against the retainer until the retainer falls to
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Item 7. Types of Clients

We provide financial advice to individuals and high net worth individuals and their families. RMG
generally requires that clients maintain at least $1 million in assets under our management in order to
use our investment management services, although RMG has the right to make exceptions to this
requirement in its sole discretion.