Abernathy Group II LLC

Item 5 Fees and Compensation

TAG charges fees on a percentage of assets under advisement or management. The
fees for discretionary assets under management and non-discretionary assets under
advisement may be identical but are subject to negotiation.

The Abernathy Group II Family Office

The fee for Family Office services ranges from 0.29%-1.25% of assets under
advisement or management per year. TAG charges a reduced fee of 0.09% - 0.29% of
assets under advisement for Family Office Clients that also use TAG’s Business
Advisory Services.

If a Family Office client receives Business Advisory Services, the fees for such services
may be in addition to the family office fees. The fees for the Business Advisory Services
may be billed on a project by project basis, and may take into account the amount of
time, and/or travel, and/or individuals outside of TAG involved, and out of pocket costs
are incurred in the process of creating strategy and tactics for the Business Advisory
Services. If legal, tax, medical, or tax professionals who are not employed by The
Abernathy Group Family Office are involved, their costs, if any, will be passed along
directly to the recipient of their services. The Abernathy Group II does not receive
compensation from any entity other than the client to avoid any conflicts of interest.
Business Advisory Services are billed hourly at the rate of $750 per hour. There is a
minimum fee of $1,000 per year for Business Advisory Services and the client will be
charged as specified in the signed client contract outlining the scope of the project and
associated the fees and expenses.

The Abernathy Group II Separately Managed Accounts

The fee for separately managed accounts is 0.39%- 2.00% of assets under advisement
or management. For those families who are members of the Abernathy Family Office,
the Separately Managed Account may be included in the Family Office Service fee
described above.

Investment Management to a Private Fund

The Affiliated Fund charges a fee between 0-2% of assets under management yearly
and an incentive fee of 10% of profits, charged quarterly relative to an annual high water
mark for all investors who are NOT clients of The Abernathy Group Family Office.
There are no extra charges for investors who are Family Office members. If there are
no profits generated relative to the annual high water mark, there will be no incentive
fees charged. Some investors in the Affiliated Fund are also members of the Family
Office. If an investor is a Family Office member, TAG will either charge a fee for Family
Office Services on the assets in the Affiliated Fund, or collect the fee charged by

Affiliated Fund. The Abernathy Group Family Office Investors will not be charged both a
fee for Family Office services and an investment management fee by the Affiliated Fund
on assets invested in the fund.

Pension Consulting
The fee for pension consulting ranges from 0.14% – 0.69% of assets in the plan,
charged quarterly in arrears.

Fees for the Family Office and Separately Managed Accounts are charged quarterly in
advance based on the ending balance on the last day of the preceding calendar quarter.
Fees for pension consulting and Family Office clients who receive business advisory
services are billed quarterly in arrears based on the ending balance of the last day of
the preceding calendar quarter. TAG generally directly debits fees from clients’
accounts. Clients may choose to have their fees directly debited or billed.

TAG in its sole discretion may charge a lesser investment advisory fee based upon
certain criteria (e.g., historical relationship, type of assets, anticipated future earning
capacity, anticipated future additional assets, dollar amounts of assets to be managed,
related accounts, account composition, negotiations with families, etc.).

In addition to TAG’s fee, clients pay brokerage and other transaction costs. Clients also
pay charges to financial institutions and other third parties such as custodial fees,
charges imposed directly by mutual funds (including money market funds) and
exchange traded funds, and deferred sales charges. Additionally, exchanges and
federal and local governments may charge transaction fees on purchases or sales of
certain mutual funds and exchange- traded funds. These transaction charges are the
responsibility of the investor or the owner of the account. The Abernathy Group II does
not receive compensation of fees of any type from anyone other than the client to avoid
any conflicts of interest.

TAG has no control over the “other fees” described above and does not participate in
any of these fees or charges. Further, TAG will do its best to minimize these and all
transaction charges and fees. For further information regarding TAG’s brokerage
practices, see Item 12 of this brochure.

If a client terminates their relationship with TAG in the middle of a quarter, TAG will
refund the client any unearned portion of fees paid in advance as of the date of
termination.

Steven Abernathy, Edward Coyle and Debra LeMoine are registered representatives of
an unaffiliated broker-dealer, Dinosaur Financial Group DBA APB Financial Group
“Dinosaur Financial” and may receive commissions the sale of securities or other
investment products, including or service fees from the sale of mutual funds. This
practice presents a conflict of interest and gives TAG’s supervised persons an incentive
to recommend investment products based on the compensation received, rather than on

a client’s needs. To avoid any conflict of interest, supervised persons of TAG do not
receive commissions on investments held by Separately Managed Accounts and Family
Office Clients. However, certain clients of TAG may also have a separate brokerage
accounts with APB which are not managed by TAG. Employees of TAG acting as
registered representatives of APB may receive commissions on transactions executed
...

Item 7 Types of Clients

TAG generally provides family offices services to high net worth individuals and their
families. It also provides services to pension and profit sharing plans, trusts, estates,
corporations or business entities and charitable organizations. TAG has a stated
account minimum of $5,000,000 for Family Office Services. The management team
reserves the ability to modify this account size based on specific variables they believe
to be important. For instance, if the management team believes it can add value to a
family’s decision-making process, and the assets under management are slightly below
our minimum account size, we may choose to invite the family to join the Family Office.

On the other hand, if we do not believe we will be able to add value to a family’s
decision-making process, or improve the family’s investment returns, or reduce the risk
they are taking, and we conclude they are generally well cared for, we may not invite
them to become members of the Family Office. TAG may also waive the minimum
account size for employees of TAG and their relatives, or relatives of existing families.

TAG provides separately managed account services to individuals and high net worth
individuals. TAG has a minimum account size of $100,000 for Separately Managed
Accounts. TAG management may decide to accept a smaller account provided they
believe the account will meet the minimum size over the course of the next year.

TAG also provides investment advisory services to one private fund, the Affiliated Fund.
The Affiliated Fund accepts accredited investors only, who have a prior substantive
relationship with TAG or with the introducing representative and has a minimum account
size of $1,000,000. TAG management may accept lesser amounts at its discretion.
This fund in not open to the public and in the future may only be used by certain existing
clients of The Abernathy Group.