Financial Management Network Inc

Item 5 – Fees and Compensation

FMN offers investment advisory services for a percentage of assets under management, hourly charges,
quarterly charges and fixed fees. All of the fees below are negotiable based upon certain circumstances.
Related accounts can be consolidated for fee purposes.

Management
Clients who participated under Management prior to July 1, 2002:
The Client will be charged a start-up fee of two (2) times the management fee based on the total equity
in all managed accounts Client has with FMN for this first year and any custodial fees (if applicable). After
the first year, the following annual fee will be charged: Minimum annual fee of $1,000 or (1) $0 - $200,000
1.00% annual fee; (2) $200,001 - $500,000 .80% annual fee; (3) $500,001 - $1,000,000 .70% annual fee;
(4) over $1,000,000 .60% annual fee (whichever is larger).

Clients who participate(d) under Management after July 1, 2002:

The Client will be charged a start-up fee of two (2) times the management fee based on the total equity
in all managed accounts Client has with Financial Management Network, Inc. for the first year and any
custodial fees (if applicable). After the first year, the following annual fee will be charged: The minimum
account size shall be $200,000; (1) $200,000 - $500,000 .90% annual fee; (2) $500,001 - $1,000,000 .80%
annual fee; (3) over $1,000,000 .70% annual fee; (4) over $3,000,000 negotiable (whichever is larger).

Clients who participate(d) under Management after September 30, 2011 and whose portfolios have a
greater degree of complexity:

FMN                           ADV Part 2A                     December 2025                                  Page 9 of 24
                                                                              © 2010 – 2019 Red Oak Compliance Solutions LLC

The Client will be charged a start-up fee of two (2) times the management fee based on the total equity
in all managed accounts Client has with Financial Management Network, Inc. for the first year and any
custodial fees (if applicable). After the first year, the following annual fee range of .60% to 1.25% will be
charged. Portfolios over $3,000,000 are negotiable.

One-fourth of the annual fee will be charged quarterly. Quarters end on the last day of March, June,
September and December. Billing for a quarter's management will occur at the end of the quarter. The
equity used in the calculation will be the average daily balance. The fees for the first quarter under
management will be pro-rated. There is no refund of any portion of the management fee to the client.

Model Portfolio Management
FMN charges management fees for those Clients who participate under Model Portfolio Management.
The Client will be charged 1.25% annually (minimum of $156.25 per quarter) and may incur transaction
fees. There is no refund of any portion of the management fee to the Client. The minimum account size
shall be $50,000.

FM6 Management
FMN charges management fees for those Clients who participate under FM6 Management. The account
will be charged .50% on the total equity in all managed accounts Client has under the FM6 program. One-
half of the annual fees will be charged semi-annually. Billing periods end on the last day of June and
December. Billing for a period's management will occur after the end of the period. The fees for the first
period under management will be pro-rated. The fee will be one-half the annual fee multiplied by the
account's equity for the period. The equity used in the calculation will be the total equity at the end of the
preceding period plus any withdrawals during the period. There is no refund of any portion of the
management fee to the Client. The minimum account size shall be $100,000.

Class F-2 shares of the American Funds
Clients who invest in Class F-2 shares of the American Funds will be charged .50%. American Funds Service
Company (AFS) shall deduct fees proportionally from Client accounts unless otherwise instructed by the
firm. Fees shall be calculated by AFS for each quarterly period ending the last business day of February,
May, August and November and shall be the product of (i) the average daily net asset value of Client
assets invested in shares of the Funds through the Program during the quarter; (ii) the number of days in
the quarter; and (iii) the rate agreed to by the parties divided by the number of days in the year. The fees
shall be paid within thirty (30) days following the end of the quarter for which such fees are payable.

Sub-Adviser
The total client fee for sub-adviser management services is 1%. The sub-adviser will trade the account,
do the reporting, billing, etc. and will charge 0.25%, this fee is not in addition to the 1% client fee. FMN
will not charge a fee for the introduction to the sub-adviser.

Financial Planning
FMN has a fee range of $500 to $25,000 for the plan report. The lesser of 50% of the fee or $1200 is due
upfront and the balance due upon delivery of the plan. FMN refunds any part of said fee to an unsatisfied
Client within five (5) business days of receipt of payment.

FMN                           ADV Part 2A                     December 2025                                Page 10 of 24
                                                                              © 2010 – 2019 Red Oak Compliance Solutions LLC

Quarterly Consulting
FMN has a fee range of $500 to $25,000 for the plan report. The lesser of 50% of the fee or $500 is due
upfront and the balance is due upon delivery of the plan. FMN refunds any part of said fee to an
unsatisfied Client within five (5) business days of receipt of payment. In addition to the fee for the report,
FMN will charge a consulting fee which ranges from $500 to $25,000 annually, billed to the Client on a
quarterly basis, which covers an agreeable period of consulting. Quarterly fees are due on the first day
following each quarter end during the consulting period. Quarters begin on the first day of January, April,
...

Types of Clients
FMN generally provides investment advice to individuals, high net-worth individuals, trusts, insurance
companies, and corporate pension and profit-sharing plans.

Minimum Account Size
For certain accounts opened by FMN, a minimum account balance is required:

        Management
        For accounts opened after July 1, 2002, a minimum account size of $200,000 is required.

        Model Portfolio Management
        A minimum account size of $50,000 is required.

        FM6 Management
        A minimum account size of $100,000 is required.

There are no minimum account size requirements on remaining services.

Minimum Annual Fee
Management accounts opened prior to July 1, 2002, are subject to a minimum annual fee of $1,000.

FMN                           ADV Part 2A                     December 2025                                Page 13 of 24
                                                                              © 2010 – 2019 Red Oak Compliance Solutions LLC