Valor Financial Services LLC

Fees and Compensation

The following types of fees will be assessed:

Asset Management – Fees are charged monthly in advance and are based primarily on asset size
and the level of complexity of the services provided. In individual cases, Valor Financial Services
(VFS) has the sole discretion to negotiate fees that are lower than the standard fee shown or to
waive fees. Fees are not based on the share of capital gains or capital appreciation of the funds or
any portion of the funds. Comparable services for lower fees may be available from other sources.
Fees for the initial month will be prorated based upon the number of calendar days in the calendar
month that the advisory agreement is in effect. Fees are based on the market value of the assets
on the last business day of the previous month. Annual fees are charged at a maximum of 1.25%.
Consulting services are included in these fees for asset management services with the exception of
unique circumstances that may require a separate agreement for financial planning services
(description and fees are discussed below). If the situation warrants separate financial planning
fees, it will be discussed upfront and a separate agreement will be negotiated.

As authorized in the client agreement, the account custodian withdraws Valor Financial Services,
LLC’s advisory fees directly from the clients’ accounts according to the custodian’s policies,
practices, and procedures. The custodial statement includes the amount of any fees paid to VFS
for advisory services. You should carefully review the statement from your custodian/broker-
dealer’s statement and verify the calculation of fees. Your custodian/broker-dealer does not verify
the accuracy of fee calculations.

Fees are charged in advance on a monthly basis, meaning that advisory fees for a month are
charged on the fifth day of the month. Clients may terminate investment advisory services
obtained from VFS, without penalty, upon written notice within five (5) business days after
entering into the advisory agreement with VFS. The client is responsible for any fees and charges
incurred by the client from third parties as a result of maintaining the account such as transaction
fees for any securities transactions executed and account maintenance or custodial fees.
Thereafter, the client may terminate advisory services upon written notice delivered to and
received by VFS. Clients who terminate investment advisory services during a month are charged
a prorated advisory fee based on the date of VFS’s receipt of client’s written notice to terminate.
Any earned but unpaid fees are immediately due and payable, and any prepaid and unearned fees
will be immediately refunded.

Additional Fees and Expenses

In addition to advisory fees paid to VFS as explained above, clients may pay custodial service,
account maintenance, transaction, and other fees associated with maintaining the account. These
fees vary by broker and/or custodian. Clients should ask VFS for details on transaction fees or
other custodial fees specific to their account, as these fees are not included in the annual advisory
fee. VFS does not share any portion of such fees. Additionally, for any mutual funds purchased,
the client may pay their proportionate share of the funds’ distribution, internal management,
investment advisory and administrative fees. Such fees are not shared with VFS and are

compensation to the fund manager. Clients are urged to read the mutual fund prospectus prior to
investing.

Mutual fund companies impose internal fees and expenses on clients. These fees are in addition
to the costs associated with the investment advisory services as described above. Complete details
of such internal expenses are specified and disclosed in each mutual fund company’s prospectus.
Clients are strongly advised to review the prospectus(es) prior to investing in such securities.

Mutual funds purchased or sold in broker-dealer accounts may generate transaction fees that would
not exist if the purchase or sale were made directly with the mutual fund company. Mutual funds
held in broker-dealer accounts also charge management fees. These mutual fund management fees
may be more or less than the mutual fund management fees charged if the client held the mutual
fund directly with the mutual fund company.

Clients may purchase shares of mutual funds directly from the mutual fund issuer, its principal
underwriter, or a distributor without purchasing the services of VFS or paying the advisory fee on
such shares (but subject to any applicable sales charges). Certain mutual funds are offered to the
public without a sales charge. In the case of mutual funds offered with a sales charge, the
prevailing sales charge (as described in the mutual fund prospectus) may be more or less than the
applicable advisory fee. However, clients would not receive VFS’s assistance in developing an
investment strategy, selecting securities, monitoring performance of the account, and making
changes as necessary.

Please refer to Item 12 “Brokerage Practices” of this brochure for additional information.

Form ADV, Part 2A, Item 6

         Performance-Based Fees and Side-By-Side Management

Valor Financial Services, LLC does not charge performance-based fees or participate in side-by-
side management. Side-by-side management refers to the practice of managing accounts that are
charged performance-based fees while at the same time managing accounts that are not charged
performance-based fees. Performance-based fees are fees that are based on a share of capital gains
or appreciation of the assets of a client. Our fees are calculated as described in Fees and
Compensation section above and are not charged on the basis of performance of your advisory
account.

Form ADV, Part 2A, Item 7

Types of Clients

VFS offers investment advisory services to individuals. There is no minimum account size to open
and maintain an advisory account.

Form ADV, Part 2A, Item 8

       Methods of Analysis, Investment Strategies, and Risk of Loss

VFS’s methods of analysis and investment strategies incorporate the client’s needs and investment
objectives, time horizon, and risk tolerance. VFS is not bound to a specific investment strategy
for the management of investment portfolios, but rather consider the risk tolerance levels pre-
determined gathered at the account opening, as well as on an on-going basis. Examples of
methodologies that our investment strategies may incorporate include:

Asset Allocation – Asset Allocation is a broad term used to define the process of selecting a mix
of asset classes and the efficient allocation of capital to those assets by matching rates of return to
a specified and quantifiable tolerance for risk.

Dollar-Cost Averaging – Dollar-cost averaging is the technique of buying a fixed dollar amount
of securities at regularly scheduled intervals, regardless of the price per share. This will gradually,
over time, decrease the average share price of the security. Dollar-cost averaging lessens the risk
of investing a large amount in a single investment at the wrong time.

Technical Analysis – involves studying past price patterns and trends in the financial markets to
predict the direction of both the overall market and specific stocks.

Long-Term Purchases – securities purchased with the expectation that the value of those securities
will grow over a relatively long period of time, generally greater than one year.

Short-Term Purchases – securities purchased with the expectation that they will be sold within a
relatively short period of time, generally less than one year, to take advantage of the securities’
short term price fluctuations.

Artificial Intelligence and Machine Learning Risk – Certain service providers utilized by the Firm
to service client accounts have artificial intelligence components. The use of artificial intelligence
and machine learning includes increased risk of data inaccuracies and security vulnerabilities. Due
to the rapid advancement of machine learning technologies, future risks related to artificial
intelligence are unpredictable. As a measure to mitigate these risks to our clients, the Firm
performs periodic due diligence of our service providers for assurance that the service providers
have appropriate controls in place to protect our clients’ information and to limit data inaccuracies
when artificial intelligence is used by the service provider.

Our strategies and investments may have unique and significant tax implications. Regardless of
your account size or other factors, we strongly recommend that you continuously consult with a
tax professional prior to and throughout the investing of your assets.

Investing in securities involves risk of loss that clients should be prepared to bear. Although we
manage your portfolio with strategies and in a manner consistent with your risk tolerances, there
can be no guarantee that our efforts will be successful. You should be prepared to bear the risk of
loss.

All investments involve the risk of loss, including (among other things) loss of principal, a
reduction in earnings (including interest, dividends, and other distributions), and the loss of future
earnings. These risks include market risk, interest rate risk, issuer risk, and general economic risk.
Regardless of the methods of analysis or strategies suggested for your particular investment goals,
you should carefully consider these risks, as they all bear risks.

Form ADV, Part 2A, Item 9