American Fundstars Financial Group LLC

Item 5: Fees and Compensation
Please note, unless a client has received the firm’s Brochure at least 48 hours prior to signing the
investment advisory contract, the investment advisory contract may be terminated by the client
within five (5) business days of signing the contract without incurring any advisory fees. Our
standard advisory fee will be based on the market value of the assets under management and
complexity of the advisory program.

Our standard advisory fees are as follows:

        Account Asset Value             Annual Advisory Fees          Fixed Income Portfolio
            $0 - $99,999                       1.50%                          0.65%
         $100,000 - $249,999                   1.40%                          0.60%
         $250,000 - $499,999                   1.30%                          0.55%
         $500,000 - $999,999                   1.20%                          0.50%
       $1,000,000 - $1,999,999                 1.00%                          0.40%
       $2,000,000 - $4,999,999                 0.90%                          0.35%
       $5,000,000 - $9,999,999                 0.80%                          0.35%
      $10,000,000 - $24,999,999                0.70%                          0.30%
      $25,000,000 - $49,999,999                0.55%                          0.30%
      $50,000,000 - $99,999,999                0.40%                          0.25%
       $100,000,000 and above                  0.35%                          0.25%

The annual advisory fees are negotiable, prorated, and paid monthly in arrears based on the fair
market value of the account on the last trading day of the previous month. Any increase to the
advisory fees will require written consent from the client. Advisory fees will be directly debited
from client accounts or by separate payment from the client. Accounts initiated or terminated
during a calendar month will be charged a pro-rated fee. An account may be terminated with 30
days’ prior written notice. Due to advisory fees payment in arrears, no refund will be needed upon
termination of advisory services.

Our fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses imposed by custodians, brokers, and other third parties. Mutual fund, exchange-traded
funds and private funds also charge management fees and other fees, which are disclosed in a
fund’s prospectus or private placement memorandum.

For international accounts, we charge a one-time consulting fee for initial consultation and account
maintenance. The fee for individual accounts is $599; for organization accounts the fee is $799.

We may charge performance-based fees to accredited investors and qualified clients. See Item 6
of this Brochure.

Item 12 of this Brochure further describes the factors that we consider in selecting or
                                                                                        6|P a ge

recommending broker-dealers for client’s transactions and determining the reasonableness of their
compensation (e.g., commissions).
The American Fundstars Advised Funds pay management fees to American Fundstars. Please
refer to the applicable offering documents, subscription agreement and/or other governing
document of the American Fundstars Advised Funds for information about fees and expenses with
respect to the American Fundstars Advised Funds.

Third-Party Advisers

For clients introduced by American Fundstars to third-party advisers, American Fundstars may
receive compensation from third-party advisers in the form of a percentage of the fees that third-
party advisers received from such introduced clients. Client advisory fees are not increased in any
way as a result of our referral of any clients to a third-party adviser. We may receive up to 50%
of the advisory management fee paid by the client to the third-party adviser.

Fees received from third-party advisers are generally paid to American Fundstars within 30 days
after third-party advisers collect such fees from the client. Fees are charged in arrears at the end of
every month. All refunds of fees paid under these advisory referral programs must be obtained
directly from the third-party adviser, not from American Fundstars. Clients should refer to the
third-party adviser’s disclosure documents for information regarding their fees, billing practices,
minimum required investments and termination of advisory agreement.

Investment Funds

In addition to the American Fundstars Advised Funds, American Fundstars may also recommend
that clients invest in investment funds unaffiliated with us. If clients follow our recommendations,
in addition to payment of our advisory fees, clients will also indirectly pay to the investment fund
or its advisers or administrators the client’s pro rata share of certain fees and payments associated
with the management, operation or distribution of the investment fund, including but not limited
to distribution fees, shareholder servicing fees, “revenue share” payments, finder’s fees, fund
management fees, and custodial fees, which are directly paid by the fund or its adviser but are, in
whole or in part, ultimately borne by the fund’s shareholders.

Certain mutual funds pay their distributors fees pursuant to Rule 12b-1 under the Investment
Company Act of 1940 (a “12b-1 fee”). Like other fees paid by a mutual fund, a 12b-1 fee has the
effect of reducing the investment returns on the mutual fund held by the investors in that fund.
Investment advisers are incentivized to recommend share classes that pay 12b-1 fees to them or
their affiliated broker-dealers over share classes that pay lower or no 12b-1 fees, which represents
a conflict of interest for the investment advisers. However, American Fundstars generally does not
intend to utilize for client accounts mutual fund share classes that pay American Fundstars 12b-1
...

Item 7: Types of Clients
We provide portfolio management services to individuals, high net-worth individuals, trusts,
charitable organizations and corporations or other businesses.

Our minimum account size requirement is $50,000, which may be waived at the firm’s sole
discretion.

We also provide investment advisory service to the American Fundstars Advised Funds.