Prudent Investor Advisors LLC

Item 5 Fees and Compensation

INDIVIDUAL ACCOUNTS

Annual fees are based on a percentage of assets under management and generally range
from 0.60% to 0.95%.
                        Annualized Investment Management Fees

                                                     Per Quarter            Per Year
 Up to $1 million                                    .2375%                 .95%
 Between $1 – 5 million                              .1500%                 .60%
 Over $5 million                                     Negotiable              Negotiable

Payroll deduction, retirement program solutions are offered for under $20 and 0.50%
annually per participant.

Fees are paid quarterly in arrears. They are payable on the first day of the calendar
quarter, and are based on an account’s asset value as of the last business day of the
prior calendar quarter.

In addition to an investment advisory/management service fee, accounts may incur
transaction costs, retirement plan administration fees, deferred sales charges on

mutual funds initially deposited in an account, and 12b-1 fees and other mutual
fund annual expenses as described in fund prospectuses.

Limited Negotiability of Advisory Fees: Prudent has established the aforementioned
fee schedule, but retains the discretion to negotiate alternative fees on a client-by-client
basis. Client facts, circumstances and needs are considered in determining the fee
schedule. These include the complexity of the client’s circumstances, assets to be placed
under management, anticipated future additional assets; related accounts; family
members and friends of associated persons of our firm; portfolio style, account
composition, reports, among other factors. We may group certain related client accounts
for the purposes of achieving the minimum account size requirements and determining the
annualized fee. The specific annual fee schedule is identified in the contract between the
adviser and each client.

ERISA & NON-ERISA RETIREMENT ACCOUNTS

Fees are based upon a percentage of assets under management and generally range
from 0.075% to 0.75%.
                       Annualized ERISA Fee Guideline

                                                        Per Quarter             Per Year
 Up to $1 million                                       0.1875%                 0.75%
 Between $1 – 10 million                                0.15%                   0.60%
 Between $10 million - $20 million                      0.0875%                 0.35%
 Above $20 million negotiable

Prudent provides investment manager services to retirement programs designed by third
parties, and charges between 0.025% and 0.25% annually, based on the discretionary
authority, discretionary control or discretionary responsibility for the plan assets.

Fees are paid in arrears. They are payable on the first day of the calendar quarter or
month and are based on the account’s asset value as of the last business day of the prior
calendar quarter or month. In addition to an investment advisory/management service
fee accounts may incur transaction costs, retirement plan administration fees, deferred
sales charges on mutual funds initially deposited in the account, and 12 (b)(1) fees and
other mutual fund annual expenses as described in the fund’s prospectus.

The advisor has instituted a one-time plan implementation fee that is $1,000 or less
depending on the individual circumstances of the engagement. The implementation fee
is due and payable immediately. The Adviser, at its discretion, reserves the right to waive
all or part of this implementation fee as an incentive to encourage the immediate signing
of an agreement for the provision of investment advisory services.

STARTUP ERISA & NON-ERISA RETIREMENT ACCOUNTS

Prudent may charge startup retirement plans a combination of fixed and asset-based fees.
The fixed fee is within a range of $1,000 to $5,000 per year, payable quarterly in arrears.
The fixed fee is negotiable and based on the circumstances of each individual situation.
The asset-based fee is covered under the annualized ERISA guideline fee above.

Limited Negotiability of Advisory Fees: Prudent has established the aforementioned
fee schedule, but retains the discretion to negotiate alternative fees on a client-by-client
basis. Client facts, circumstances and needs are considered in determining the fee
schedule. The actual fee is negotiated based on factors that include the types of services
being provided and the number of plan employees. The assets to be placed under
management, anticipated future additional assets; portfolio style, account composition,
reports, among other factors. The specific annual fee schedule is identified in the contract
between the adviser and each client.

FINANCIAL PLANNING FEES

Financial planning fees are negotiable but generally fees are charged at the rate of $200
to $300 an hour or for a fixed fee that generally ranges from $1,000 to $25,000. The
Adviser may also provide general non-securities advice on topics that may include tax and
budgetary planning, estate planning and business planning. This is considered an integral
part of the financial planning process and does not generate a separate fee. On occasion,
the Adviser may enter into an agreement to offer financial consultation at a similar hourly
rate as the financial planning rate.

When both investment management and financial planning services are offered, there is
a conflict of interest since there is an incentive for the party offering financial planning
services to recommend itself to be the investment manager. Clients of the Adviser,
however, are under no obligation to act upon any recommendations of the Adviser or to
affect any transactions through the Adviser if they decide to follow the Adviser’s
recommendations.

Either the client or the Adviser may terminate an account agreement at any time upon
written notice. All fees are paid in arrears. There are no prepaid unearned fees. The
...

Item 7 Types of Clients

Prudent provides advisory services to the following types of clients:

   Individuals (other than high net worth individuals)
   High Net Worth Individuals – Individuals who are “qualified clients” under rule 205-3
    of the Advisers Act of 1940 or are “qualified purchasers”
   Pension and profit-sharing plans (other than plan participants)
   Charitable organizations
   Other investment advisers
   State or municipal government entities

Grandfathering of Minimum Account Requirements: Pre-existing advisory clients
are subject to Prudent's minimum account requirements and advisory fees in effect at
the time the client entered into the advisory relationship. Therefore, our firm's minimum
account requirements will differ among clients.