Advisors Management Group Inc

Item 5         Fees and Compensation

Portfolio Management Services Fees
AMG charges an advisory fee based on a percentage of total market value of assets under management:

               Annual Advisory Fee                                   Assets Under Management

                1.25% on the first                                          $1,000,000
                .85% on amounts                                       $1,000,001 - $2,000,000
              .60% on amounts over                                          $2,000,000

The fee is negotiable under limited circumstances. The advisory fee may be deducted directly from the
client’s brokerage account or paid separately by check. If client assets are invested in mutual funds, the
client will pay, in addition to our advisory fee, a proportionate share of the mutual fund’s fees and
expenses. The client is also responsible for all custodial fees and brokerage commissions, if any.
Please refer to the Brokerage Practices section of this brochure for more information pertaining to
these possible fees and commissions.

Advisory fees are computed on a quarterly basis. The quarterly fee will be charged at the beginning of
each calendar quarter based upon the value of assets under management at the end of the previous
quarter. For new accounts, the fee for the first quarter will be payable on the date on which the
advisory agreement is accepted by AMGI and will be based on the market value of the assets on that
date. The initial fee will be prorated from the date AMGI accepted the advisory agreement through the
end of the calendar quarter. If additional assets are added to or withdrawn from the account during a
quarter, the fee will be prorated to reflect the period of time the assets are under management. These
fee refunds or amounts due for the prior quarter will be processed with the current quarter fees.

Termination of the Portfolio Management Services Fee
If either AMG or the client terminates the investment advisory agreement, a portion of advisory fees
already paid will be refunded. If a client terminates the agreement at any time, a pro-rata
reimbursement of the fee will be made to the client for the quarter in which the agreement ended.

Financial Planning Service Fees
The Firm typically charges a flat fee for financial planning with a minimum planning fee of $500.00
and a maximum fee of $10,000.00. The fees vary depending upon the complexity of the Client’s
financial situation, the estimate of hours involved, preparation and research, and the specified areas.
The Firm will provide an estimated fee in the written agreement for services. In limited circumstances,
the Firm will not charge a financial planning fee.

Fees for all financial planning services are agreed upon in advance in writing and due at that time. For
prepaid fees in excess of $1200.00, services will be completed within six months of the date fees are
received.

Termination of Financial Planning Services
A client may cancel any Financial Planning Service Agreement for any reason during the first five (5)
days from the date of signing the agreement and will receive a refund of 100% of all fees paid without
cost or penalty. To cancel the agreement, a client must notify the Firm and return any materials
received to that date. Thereafter, the contract may be terminated at any time by giving written notice to
the Firm. If a client cancels, any prepaid fees will be refunded on a prorated basis based upon the
number of hours worked.

401K Plan Participant Consulting
AMG’s 401K Plan participant consulting services are provided on a flat fee basis. Fees range from $250
to $10,000 depending on the scope of services to be provided. Fees are payable monthly in advance or
arrears as agreed upon in the client agreement.

Business Consulting Service Fees
The fee for AMG’s business consulting services varies based on the type of service provided, the duration
of the project, the expertise required and other factors and is negotiated on a client-by-client basis.

Fees for all business consulting services are agreed upon in advance in writing and due as agreed upon.
For prepaid fees in excess of $1200.00, services will be completed within six months of the date fees are
received.

Termination of Business Consulting Service Fees
A client may cancel any Business Consulting Service Agreement for any reason during the first five (5)
days from the date of signing the agreement and will receive a refund of 100% of all fees paid without
cost or penalty. To cancel the agreement, a client must notify the Firm and return any materials received
to that date. Thereafter, the contract may be terminated at any time by giving written notice to the Firm.
If a client cancels, any prepaid fees will be refunded on a prorated basis based upon the number of hours
worked.

Item 7                Types of Clients

AMG provides investment advice and financial planning services to individuals, trusts, estates,
charitable organizations, corporations or other business entities, and participants of employee benefit
plans (e.g. 403(b) plans, SIMPLE plans and IRA accounts). AMG also provides investment advice to
participants of 401(k) and 457(b) plans. AMG does not currently require a minimum account balance
to provide these services.

AMG also prepares income tax returns for individuals, trusts, estates, and business entities for a fee in
addition to the investment advisory fee paid for advisory services. In addition, we provide
bookkeeping, accounting, and business consulting services for small businesses, also for an additional
fee.

Item 8         Method of Analysis, Investment Strategies and Risk of Loss

AMG follows a disciplined investment philosophy of diversifying investments across several asset
classes in a global context. The basic asset classes include stocks, bonds, and cash reserves. Each
general asset class can be further broken down into various asset classes or investment alternatives (e.g.
foreign stocks, small capitalization stocks, growth stocks, etc.). The various asset classes tend to
perform differently under various market/economic conditions. Appropriate diversification among
asset classes and market sectors allows the investor to achieve more consistent returns over time.

As part of the mutual fund and ETF selection process, we analyze the historical performance of the
fund over the past one-, three-, five-, and 10-year periods and examine the fund’s volatility during
relevant time periods. We also analyze portfolio fundamentals and evaluate the fund’s management.
AMG primarily recommends no-load mutual funds. The universe of available investments may cause
performance to vary slightly. Although we attempt to decrease risk in the portfolio design, investing in
securities involves risk of loss that clients should be prepared to bear.

As part of the individual equity selection process, we analyze the volatility during relevant time periods
along with the company’s fundamental and technical data. We are seeking to add equities to the
portfolio at a discount relative to 3–5-year fair value that are committed to paying dividends and/or
have the potential for growth over time.

                                           RISKS OF LOSS

Clients should understand that investing in any securities, including mutual funds, involves a risk of
loss of both income and principal. Investing in securities inherently involves risk of loss which clients
should be prepared to bear. Each portfolio involves different levels and types of risks. The following
identifies the material risks associated with the portfolios described above:

Market Risk: Conditions in a broad or specialized market, a sector thereof or an individual industry
may adversely affect security prices, thereby reducing the value of the portfolio’s investments.

Equity Risk: Equity securities are subject to market risk. Stocks and other equity securities fluctuate in
price, often based on factors unrelated to the issuers’ value, and such fluctuations can be pronounced.
Equity securities may also be subject to investment style risk, which is the risk that the particular

market segment on which a portfolio focuses will underperform other kinds of investments.

Fixed Income Risk: Fixed income securities are subject to interest rate risk, credit risk, reinvestment
risk, prepayment risk and call risk. Interest rate risk is the potential for a decline in bond prices due to
rising interest rates. Credit risk is the possibility that the issuer of a fixed-income security will fail to
make timely payments of interest or principal, or that the security will have its credit rating
downgraded. Reinvestment risk is the risk that future proceeds will have to be reinvested at a lower
potential interest rate. Prepayment risk is the chance that a large number of the mortgages underlying a
mortgage-backed security will be refinanced sooner than the investor had expected. Call risk is the
possibility that an issuer will “call”—or repay—a high-yielding bond before the bond’s maturity date.
In the case of both prepayments and calls, the portfolio is usually forced to reinvest the proceeds in a
security with a lower yield.

Small-and Medium-Sized Capitalization Company Risk: Investing in securities of small-and
medium-sized capitalization companies may involve greater risks than investing in larger, more
established issuers. Smaller capitalization companies typically have relatively lower revenues, limited
product lines and lack of management depth, and may have a smaller share of the market for their
products or services than larger capitalization companies. The stocks of smaller capitalization
companies tend to have less trading volume than stocks of larger capitalization companies. Less trading
volume may make it more difficult for Adviser to sell securities of smaller capitalization companies at
quoted market prices. Finally, there are periods when investing in smaller capitalization stocks falls out
of favor with investors and the stocks of smaller capitalization companies underperform.

Non-U. S. Securities Risk: Non-U.S. markets can be significantly more volatile than domestic
markets, causing the prices of a portfolio’s investments to fluctuate significantly, rapidly and
unpredictably. Non-U.S. securities may be less liquid than domestic securities; consequently, the
portfolio may at times be unable to sell non-U.S. securities at desirable times or prices. Brokerage
commissions, custodial fees and other fees and expenses associated with securities transactions
generally are higher for non-U.S. securities. In the event of a default in connection with certain debt
securities issued by foreign governments, the portfolio may have very limited recourse, if any.
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