Advisors Financial Inc

ITEM 5 – FEES AND COMPENSATION

AFI charges its Clients investment management and financial planning fees based on the
investment program listed below:

Continuing Financial Planning Services. Fees for Continuing Financial Planning Services are
based on the Client’s total investable assets (all investment assets not including personal
residence, automobiles, and other personal property items, but including non-securities assets
such as investment real estate,) assets management directly by AFI, and the complexity of each
financial planning situation. The annual renewal date is based on the month the Client first began
making use of Continuing Financial Planning Services. The fee is due in two equal installments at
the beginning and middle of the contract period. Fees range from $250 to $10,000. AFI, in its sole
discretion, may waive or negotiate lower fees for certain Clients.

Either party may terminate the Continuing Financial Planning Agreement, at any time, with the
advance written notice to the other party. If the termination is in the middle of a billing period, AFI
will reimburse the Client the pro-rata portion of unearned fees. The fees are payable in two
installments over the term of the annual contract.

Financial Planning Agreement. AFI Clients governed by our Financial Planning Agreement are
billed on an hourly basis at a rate ranging from $250 - $500 per hour.

AFI, in its sole discretion, may waive or negotiate lower fees for certain Clients. Fees for the
Financial Planning Agreement are payable in two or four installments depending on the value, half
of which is due at the time of signing the agreement and the other half upon delivery of the
financial plan document. Either party may terminate the financial planning agreement, at any time,
with advance written notice to the other party, and the Client will receive a refund of any unearned
fees on a pro-rata basis.

AFI Managed Accounts. The fee for AFI Managed Accounts is up to 1.50% annually. Fees for AFI
Managed Accounts are charged quarterly, in arrears, based on the average daily balance of assets
under management during the calendar quarter. Clients authorize AFI to deduct fees automatically
from their accounts but may request that AFI send quarterly invoices to be paid by check. Fees are
negotiable at the discretion of the Advisor. For Clients who authorize AFI to deduct fees, Clients
will be provided with a statement, at least quarterly, from the Custodian reflecting deduction of the

investment advisory fee. All securities held in accounts managed by AFI will be independently
valued by the Custodian. The Advisor will conduct periodic reviews of the Custodian’s valuation to
ensure accurate billing. For accounts that are leaving AFI management, the Advisor reserves the
right to deduct management fees for the period of AFI management from the start of the current
quarter to the date of notice of termination.

The Advisor’s fees noted above do not include the fees paid to investment platforms or
independent manager[s]. The Custodian may charge fees that are in addition to and separate from
the Advisor’s fees. Custodians may charge accounts for various transaction costs and retirement
plan and administrative fees, as applicable. Certain Custodians recommended by the Advisor do
not charge securities transaction fees for ETF and equity trades in a Client's account, provided that
the account meets the terms and conditions of the Custodian's brokerage requirements. However,
the Custodian typically charges for mutual funds and other types of investments. In addition,
mutual fund and investment products may be subject to annual expenses as described in each
product’s prospectus.

Additional details are available in the investment advisory agreement, which is available in
advance upon request.

ITEM 7 – TYPES OF CLIENTS

AFI provides customized investment management services to individuals, high net-worth
individuals, trusts, estates, foundations, endowments, charitable organizations, and other legal
entities. AFI’s minimum investment asset size is generally $500,000, but this amount may be
reduced at the sole discretion of AFI.

Additionally, third-party money managers may impose minimums for the investment strategies as
noted in Item 4B above.