RMDR Advisors Inc

Item 5 – Fees and Compensation

All fees are subject to negotiation.

For clients referred to a financial planner, Mr. Geary will share in commissions on any
insurance products sold to the mutual client.

Hourly Fees: RMDR also charges hourly fees for investment consulting services if the client
elects not to have fees deducted from an investment account. The hourly rate is $150 to
$200. Fees will be due upon completion of the contracted services.

Management Fees: For investment management accounts, RMDR’s annual fees are based
on a percentage of assets in the client’s account. Clients whose investment advisory
agreements with Mr. Zabriskie’s clients will be charged fees quarterly in advance as
provided in their agreements.

Other RMDR clients’ fees are charged quarterly in arrears based on the total market value
of the account, including cash, as reported by the custodian at the close of business on the

last business day of the preceding calendar quarter. This value could differ from the
quarter-end custodial statement value.

RMDR does not maintain a standard fee schedule applicable to individual managed
accounts. Fees are negotiated on a case-by-case basis based upon factors determined by the
firm to be material including but not limited to account size and servicing requirements.
Management fees will not exceed 1.0%. Since RMDR negotiates fees for its services, fees
could vary from client to client. RMDR has a practice of rounding the management fee to
the nearest whole dollar.

RMDR’s fees for the clients who participate in the aforementioned higher education
retirement system plans (Item 4B) are generally lower than fees for RMDR’s other clients,
due to some or all of the following factors: the volume of participants, the regulation of and
standards set for participation in the university’s retirement program, and the tax deferred
nature of the accounts.

RMDR waives its fees for accounts of RMDR’s associated persons and their families.

Fixed Fees: The fee for a few accounts is charged on a fixed-fee basis, which is disclosed in
the client’s agreement, is paid annually in arrears and is negotiable.

Accounting and collection of our fee: Most clients do not pay asset management fees in
advance. However, clients whose investment advisory agreements with Mr. Zabriskie were
assigned to RMDR will continue to be charged fees quarterly in advance as provided in
their agreements.

Fees are deducted from each client’s account(s) as agreed upon, after the end of each
quarter. Fees are based on the client’s account value(s) at the close of business on the last
day of each quarter. The reported valuation used could differ from the quarter-end
custodial statement value. Clients are not invoiced but receive notification of deducted
advisor fees on the next account statement provided by the account custodian.

If a client authorizes the deduction of fees from the account maintained with the client’s
Custodian, the Custodian will not verify RMDR’s fee calculation and therefore it is the
client’s responsibility to review the account custodian statements to ensure that fees were
calculated accurately. Clients can issue written instructions directing RMDR to deduct fees
from one of the client’s RMDR accounts to pay the fees of another of the client’s RMDR
accounts. Clients can also pay RMDR’s fees directly.

Termination of Agreements: Investment management clients are required to sign an
investment advisory agreement with RMDR. The agreement provides that it shall be
continuous until one party to the agreement terminates it. Each agreement provides that
the client can terminate the agreement within five business days of its effective date
without paying any fees or penalties to RMDR. The agreement also provides that once the
initial five-day period has passed, either party to the agreement can terminate the
agreement at any time by providing written notice to the other party, however, the client

will incur a pro rata charge for services rendered prior to termination. If the agreement is
terminated partway through a calendar quarter, RMDR will deduct fees from the client’s
custodial account for the period beginning with the first day of the current calendar
quarter through the date of termination. If there are any prepaid unearned fees at the time
of termination, the firm will promptly refund those fees to the client.

Other fees: RMDR’s fees do not include any bank fees, margin interest, national securities
exchange fees, wire transfer fees or other costs or fees associated with securities
transactions or required by law. Clients’ funds awaiting investment are sometimes placed
in a money market fund; RMDR’s fees do not include any internal fees and expenses of any
money market fund. Some money market funds are affiliated with the Custodian. Accounts
with funds invested in mutual funds will bear the fund’s internal fees and expenses, which
are not included in RMDR’s fees. Clients should review all fees and expenses charged by
mutual funds, RMDR, and others to fully understand the total amount of fees and expenses
the client will pay.

For its asset management clients whose fees are charged based on a percentage of assets
under RMDR’s management, RMDR recommends Fidelity Investments to act as the
custodian for the clients’ accounts. In formulating this recommendation, RMDR considers
the commission price, speed of execution of trades, software available from Fidelity
Investments that aids in servicing clients’ accounts, and the range of securities products
available from Fidelity Investments. Clients could pay commission rates to Fidelity
Investments that are higher than commission rates available elsewhere.

RMDR does receive a nominal fee from Annuity Transfers, Inc., for the purchase of
structured settlement annuities, a non-securities alternative investment. The rate of return
shown by Annuity Transfers, Inc. includes all fees paid to RMDR for the acquisition of the
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Item 7 – Types of Clients

The majority of the firm’s clients are individual investors. The majority of the firm’s clients
are invested in retirement accounts such as IRAs and 403(b) plans as described in item 4
above. There is no minimum account size.