Affinity Investment Group LLC

Item 5          Fees and Compensation
                                   PORTFOLIO MANAGEMENT FEES
The annualized fee for Portfolio Management Services is charged as a percentage of assets under
management, according to the following schedule:
    Assets under Management                             Annual Fee
         $250,000 - $500,000                              1.25%
         $500,001 - $1,000,000                            1.00%
         $1,000,001 - $2,000,000                          0.75%
         Greater than $2,000,000                          0.50%
Typically, these fees are debited directly from client accounts quarterly in arrears based upon the
value (market value or fair market value in the absence of market value) of the account as of the last
day of the quarter. In rare circumstances client may elect to be billed directly for portfolio
management services rendered. Alternatively, and upon mutual agreement, fees may be charged as a
fixed or flat fee.

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A minimum of $250,000 of assets under management and a $3,125 minimum annual fee is required for
this service. Fees for accounts under $250,000 will be negotiated upon the needs of each individual
client. Affinity may group certain related client accounts for the purposes of achieving the minimum
account size and determining the annualized fee.
Limited Negotiability of Advisory Fees: Although Affinity has established the aforementioned fee
schedule(s), Affinity shall generally price its advisory services based upon various objective and
subjective factors. As a result, our clients could pay diverse fees based upon the type, amount and
market value of their assets, the anticipated complexity of the engagement, the anticipated level and
scope of the overall investment advisory and consulting services to be rendered. Additional factors
effecting pricing can include related accounts, employee accounts, competition, and negotiations.
Please Also Note: As a result of these objective and subjective factors, similarly situated clients could
pay diverse fees, and the services to be provided by Affinity to any particular client could be available
from other advisers at lower fees. All clients and prospective clients should be guided accordingly.
ANY QUESTIONS: Affinity’s Chief Compliance Officer, Gregory Gagne, remains available to address
any questions regarding advisory fees. The specific annual fee schedule is identified in the contract
between the adviser and each client.
Affinity reserves the right to reduce or waive advisory fees for services provided to family members
and friends. Such rates are not available to all our advisory clients.
Cash and Margin Holdings:

Unless agreed otherwise, any and all account asset classes, including cash positions, are included in
Affinity’s advisory fee calculation. At certain times our advisory fee may exceed the money market
yield for cash assets.

Margin Accounts: Risks/Conflict of Interest. Affinity does not recommend the use of margin for
investment purposes. A margin account is a brokerage account that allows investors to borrow money
to buy securities and/or for other non-investment borrowing purposes. The broker/custodian charges
the investor interest for the right to borrow money and uses the securities as collateral. By using
borrowed funds, the customer is employing leverage that will magnify both account gains and losses.
Should a client determine to use margin, Affinity will include the entire market value of the margined
assets when computing its advisory fee. Accordingly, Affinity’s fee shall be based upon a higher
margined account value, resulting in Affinity earning a correspondingly higher advisory fee. As a
result, the potential of conflict of interest arises since Affinity may have an economic disincentive to
recommend that the client terminate the use of margin. Please Note: The use of margin can cause
significant adverse financial consequences in the event of a market correction. ANY QUESTIONS:
Our Chief Compliance Officer, Gregory Gagne, remains available to address any questions that a
client or prospective client may have regarding the use of margin.
                          FINANCIAL PLANNING / CONSULTING FEES
Affinity's Financial Planning / Consulting fee is determined based on the nature of the services being
provided and the complexity of each client’s circumstances. All fees are agreed upon prior to entering
into a contract with any client.
Our Financial Planning / Consulting fees are calculated and charged on a fixed fee basis, typically
ranging from $2,500 to $10,000, depending on the specific arrangement reached with the client.

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However, under certain rare circumstances, these rates may be negotiable. We will quote the fixed fee
to the client at the time the advisory agreement is executed. Affinity generally requires financial
planning / consulting clients to pay a retainer (typically one half of the agreed upon fee). The balance
of the fee will be billed on a quarterly basis. We will never charge more than $1,200 more than 6
months in advance of the financial planning or consulting service having been earned.
Fees Offset By Commissions: If a Financial Planning / Consulting client executes recommended
transactions through associated persons of our firm in their separate capacity as a licensed insurance
agent/broker, these individuals will earn commissions which are separate and distinct from fees
charged for advisory services. In some instances, depending on the size of the transaction, advisory
fees will be discounted, at our discretion, for commissions earned. Commissions will not be credited
towards future advisory fees.
Financial Planning / Consulting Fee Offset: Affinity reserves the discretion to reduce or waive the
minimum fixed fee if a financial planning / consulting services client chooses to engage us for our
Portfolio Management Services.
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Item 7          Types of Clients
Affinity generally provides investment advice to individuals, including high net worth individuals;
trusts and estates; charitable organizations, and corporations or business entities. Our employees may
serve on boards of certain client entities or undertake similar internal functions for clients and receive
additional compensation for such activities. The terms of such compensation, if any, will be outlined
in a separate written document.
As previously disclosed in Item 5, our firm has established certain initial and ongoing minimum
account requirements, based on the nature of the service(s) being provided. For a more detailed
understanding of those requirements, please review the disclosures provided in each applicable
service.
Affinity shall generally price its advisory services based upon various objective and subjective factors.

4895-7422-1722, v. 1

As a result, our clients could pay diverse fees based upon the type, amount and market value of their
assets, the anticipated complexity of the engagement, the anticipated level and scope of the overall
investment advisory and consulting services to be rendered. Additional factors effecting pricing can
include related accounts, employee accounts, competition, and negotiations. Please Also Note: As a
result of these objective and subjective factors, similarly situated clients could pay diverse fees, and
the services to be provided by Affinity to any particular client could be available from other advisers
at lower fees. All clients and prospective clients should be guided accordingly.