Tudor Financial Inc

Item 5 Fees and Compensation

Fees have been established to be reasonable and incentive-based. Tudor Financial’s goal is to provide
consistent and proactive money management services at reasonable cost in conjunction with objective
and reliable financial advisory services.

The firm’s objective is to keep costs of services at reasonable levels. From an investment perspective, for
example, the firm can purchase mutual funds on a no-transaction fee basis and will use such funds
wherever possible. Additionally, transaction costs to purchase or sell mutual funds, exchange-traded
funds and individual securities are based on the size of the trade, and these transaction costs are
structured to be very reasonable: transaction costs will typically range from $35.00 to $80.00 for even
the largest trades. If transaction charges occur, representatives may receive a portion of these costs
through a broker/dealer. However, the transaction charges are levied largely to cover costs of the
custodial firm/broker-dealer clearing charges. Additionally, no transaction costs are paid to Tudor
Financial. Transaction charges will not reduce or have an impact on the management fees associated
with a client portfolio. See Brochure 2B for further fee information.

Transaction costs to buy or sell a security may be construed as a conflict of interest since they may
generate a small incremental benefit to an adviser; however, the firm follows a long-term successful
disciplined program of model portfolios. These models naturally drive the purchase or sell decisions
which will limit transactions to those designed to improve results. If they chose to, clients could
purchase similar securities from other sources.

Investment management:

Investment management fees based on managed household balances are as follows:

                         Portfolio Value                          Fee
                          $0 – 500,000                      1.25% of balance
                      $500,001 – 3,000,000              1.00% of entire balance
                     Greater than $3,000,000             .75% of entire balance

Our investment management fees for the Legacy Individual Stock Strategies are:

                          Portfolio Value                        Fee
                       $500,000 – 5,000,000             .75% of entire balance
                      Greater than $5,000,000           .60% of entire balance
                                        $35 Transaction Costs

Investment fees are billed or pro-rated quarterly for the time of service rendered and deducted
automatically from client accounts. Terminated accounts are pro-rated through the date of service. Fees
are charged in arrears – they are charged after the end of a quarterly period. At our discretion, we may
combine the account values of family members living in the same household. Fees are typically not
reduced, but may be negotiated in unusual circumstances. Multiple portfolios aggregated by
family members living in the same household could provide an incremental fee benefit.
There may be an annual custodial fee associated with an account – usually these are charges made by
the custodian firm holding the assets and the charges are usually for the additional costs associated with
retirement accounts. These fees are as low as $35.00 to $50.00 annually depending on the complexity of
the retirement account. A current custodian of brokerage accounts used by the firm is National Financial
Services.
Mutual funds allocated to portfolios have their own underlying costs. Exchange-traded funds also have
underlying costs – but these tend to average about half or less the cost of mutual funds.
Load (sales-charge) funds are not included in our fee-based models. Advisers associated with our firm
may offer these products outside of our investment models through their affiliation with a commission-
based broker-dealer. See Brochure 2B for further details.

Some clients use our RetirementTrack 401(k) Management Services to assist with the management of
their company-sponsored retirement plans. This service has a fee schedule as follows:

       RetirementTrack 401(k) Management Services                            Fee
                                                                  .75% of balance annually =
                     Quarter-End Value:
                                                               .1875% quarterly (min. $300/yr.)

RetirementTrack fees can be deducted from an existing brokerage account each quarter, billed as an
invoice or through agreement by ACH bank account draws. Clients can choose their preferred method.

Financial Advisory and Guidance Services:

Financial Advisory and Planning Services fees are based on the complexity of each client’s unique
circumstances. Advisory and Planning Services include ad hoc investment advice, budgeting, estate
planning, tax planning, asset protection and other business and personal financial matters. Some
financial advisory/planning services are offered for a fixed fee – for example, $495-895 for a
comprehensive financial plan. Fees are ordinarily billed following completion of advisory and planning
services.

Our Financial Advisory and Planning Services can also be structured to be systematic and consistent
year-round. Our approach is proactive – communicating with and advising clients consistently. The fees
for these services are most often determined as a monthly amount usually ranging from $150-
400/month. These fees are pro-rated based on the length of time services are offered and will typically
be charged by ACH from a client bank account monthly as outlined in the client ACH agreement.

Item 7 – Types of Clients

Our firm and advisers work with individual investors and financial planning clients, high-net-worth
clients, trusts, small and midsized retirement plans and pension plans. For larger established firms,
Tudor manages pooled pension accounts.

Our experience, technology and strategies can accommodate a range of client objectives and risk
parameters. The firm has experience with high-net-worth client investment management and financial
planning. The firm also manages a number of company-sponsored pension and retirement plans.

The firm works with existing client advisers such as CPA’s and attorneys. If clients desire a relationship
with a CPA or attorney, the firm may refer a client to an established professional.

Although the firm has not established a minimum account size to initiate a client relationship, cost
savings and investment flexibility are greater as account size increases.