APO Financial Services LLC

Item 5 Fees and Compensation
APO believes that its fees are reasonable in relation to the services it provides and the fees
charged by other investment advisers offering similar services. However, APO’s fees may be
higher than that charged by other investment advisers offering similar services.

Portfolio Management Services. APO provides Investment Advisory Portfolio Management on
a fee-based basis. APO's annual investment management fee shall be prorated and paid quarterly
in arrears, based upon the market value of the assets on the last day of the preceding quarter.
APO’s investment advisory fee is negotiable at APO’s discretion, but generally ranges from
negotiable up to 1.50%, depending upon various factors including but not limited to: the amount
of assets to be managed; portfolio composition; the scope and complexity of the engagement; the
anticipated number of meetings and servicing needs; related accounts; future earning capacity;
anticipated future additional assets; the professional(s) rendering the service(s); prior
relationships with APO and/or its representatives, and negotiations with the client. As a result,
similarly situated clients could pay different fees and the services to be provided by APO to any
particular client could be available from other advisers at lower fees.

Clients may elect to have APO’s fees deducted from their custodial account(s). Both APO's
Investment Advisory Agreement and the custodial/clearing agreement may authorize the
custodian to debit the account for the amount of APO's investment advisory fee and to directly
remit that management fee to APO in compliance with regulatory procedures. In the limited
event that APO bills the client directly, payment is due upon receipt of APO’s invoice. APO shall
deduct fees and/or bill clients quarterly in arrears, based upon the market value of the assets on
the last business day of the preceding quarter, with the exception of the initial month of
engagement for which APO may charge in arrears

Unless the client directs otherwise or an individual client’s circumstances require, APO shall
generally recommend Axos Advisor Services as the broker-dealer/custodian for client investment
management assets. Broker-dealers charge brokerage commissions and/or transaction fees for
effecting certain securities transactions (i.e. transaction fees are charged for certain no-load
mutual funds, commissions are charged for individual equity and fixed income securities

transactions). In addition to APO’s investment management fees, brokerage commissions and/or
transaction fees, clients will also incur, relative to all mutual fund and exchange traded fund
purchases, charges imposed at the fund level (e.g. management fees and other fund expenses).

The Investment Agreement between APO and the client will continue in effect until terminated
by either party by written notice in accordance with the terms of the Investment Agreement.
Upon termination, APO shall refund the unearned prorated portion of the advanced fee paid
based upon the number of days remaining in the billing quarter.

Other than the commissions from insurance as discussed above in item 4, neither APO, nor its
representatives, accepts compensation from the sale of securities or other investment products.

Financial Planning and Consulting Services. APO’s planning and consulting fees are
negotiable and may be complementary at APO's discretion, but generally range from $1,000 to
$10,000 when charged on a fixed fee basis or up to $500 per hour when charged on an hourly rate
basis, depending upon the level and scope of the service(s) required and the professional(s)
rendering the service(s).

Pension Consulting Services Fees. APO’s pension consulting Fees are negotiable, but generally
are charged up to 100 bps (basis points) of the plan assets for which APO is providing such
consulting services or on a fixed fee basis up to $50,000 depending upon the level and scope of
the service(s) required and the professional(s) rendering the service(s).

Educational Seminars. While certain Educational Seminars may be complementary at APO’s
discretion, generally Educational Seminars attendees may be assessed a fee ranging from $40 to
$100. The workshop fee will be announced in advance and will be determined by the length of
the event, the number and expertise of the presenters involved, and whether or not educational
materials are being provided. Payment will be due in advance of the first session.

Item 7 Types of Clients

We serve individuals, high net worth individuals, business entities and pension/profit sharing
plans. APO does not generally require a minimum asset level for investment services. APO, in its
sole discretion, may charge a lesser investment management fee and/or reduce and/or waive its

minimum asset level requirement based upon certain criteria (i.e. anticipated future earning
capacity, anticipated future additional assets, dollar amount of assets to be managed, related
accounts, account composition, negotiations with client, etc.).