Capital Management Advisor Group LLC

Item 5: Fees & Compensation

Compensation for Our Advisory Services

Comprehensive Portfolio Management:

The maximum annual fee charged for our Comprehensive Portfolio Management service will not
exceed 1.00% and is often less. Fees to be assessed will be outlined in the advisory agreement to be
signed by the Client. Annualized fees are billed on a pro-rata basis quarterly in arrears based on the

ADV Part 2A – Firm Brochure                     Page 5                    Capital Management Advisor Group, LLC

average daily value of invested assets during the quarter. Fees are negotiable and will be deducted
from client account(s). Unless otherwise agreed to in writing, our advisory fees shall be applicable to
cash and cash equivalents. Adjustments will be made for deposits and withdrawals during the
quarter. Our firm does not offer direct invoicing. As part of this process, Clients understand the
following:

    a) The client’s independent custodian sends statements at least quarterly showing the market
       values for each investment position in the assets and all account disbursements, including the
       amount of the advisory fees paid to our firm;
    b) Clients will provide authorization permitting our firm to be directly paid by these terms. Our
       firm will send an invoice directly to the custodian; and
    c) If our firm sends a copy of our invoice to the client, legend urging the comparison of
       information provided in our statement with those from the qualified custodian will be
       included.

Fees charged for third party manager services shall be in addition to our advisory fees. The third
party money managers we recommend will not directly charge you a higher fee than they would have
charged without us introducing you to them. Third party money managers establish and maintain
their own separate billing processes over which we have no control. In general, they will directly bill
you and describe how this works in their separate written disclosure documents.

Other Types of Fees & Expenses:

In addition to our advisory fees above, clients may also pay holdings charges imposed by the chosen
custodian for certain investments, charges imposed directly by a mutual fund, separately managed
account, index fund, or exchange traded fund, which shall be disclosed in the fund’s prospectus (i.e.,
fund management fees, initial or deferred sales charges, mutual fund sales loads, 12b-1 fees,
surrender charges, variable annuity fees, IRA and qualified retirement plan fees, and other fund
expenses), mark-ups and mark-downs, spreads paid to market makers, fees for trades executed away
from custodian, wire transfer fees and other fees and taxes on brokerage accounts and securities
transactions. Our firm does not receive a portion of these fees.

Termination and Refunds:

Either party may terminate the advisory agreement signed with our firm for Comprehensive
Portfolio Management service in writing at any time. Upon notice of termination our firm will
calculate and bill for any remaining fees due based upon the pro rata number of days elapsed in the
current billing period.

Financial Planning & Consulting:

Our firm charges on an hourly or flat fee basis for financial planning and consulting services. The total
estimated fee, as well as the ultimate fee charged, is based on the scope and complexity of our
engagement with the client. The maximum hourly fee to be charged will not exceed $500. Flat fees
will not exceed $10,000. The fee-paying arrangements will be determined on a case-by-case basis
and will be detailed in the signed consulting agreement. Our firm will not require a retainer exceeding
$1,200 when services cannot be rendered within 6 months.

ADV Part 2A – Firm Brochure                    Page 6                     Capital Management Advisor Group, LLC

Other Types of Fees & Expenses

Clients will incur transaction fees for trades executed by their chosen custodian, via individual
transaction charges. These transaction fees are separate from our firm’s advisory fees and will be
disclosed by the chosen custodian. Charles Schwab and Co. (“Schwab”) does not charge transaction
fees for U.S. listed equities and exchange traded funds.

Clients may also pay holdings charges imposed by the chosen custodian for certain investments,
charges imposed directly by a mutual fund, separately managed account (SMA) index fund, or
exchange traded fund, which shall be disclosed in the fund’s prospectus (i.e., fund management fees,
initial or deferred sales charges, mutual fund sales loads, 12b-1 fees, surrender charges, variable
annuity fees, IRA and qualified retirement plan fees, and other fund expenses), mark-ups and mark-
downs, spreads paid to market makers, fees for trades executed away from custodian, wire transfer
fees and other fees and taxes on brokerage accounts and securities transactions. Our firm does not
receive a portion of these fees.

Termination & Refunds

Either party may terminate the advisory agreement signed with our firm for Comprehensive
Portfolio Management services in writing at any time. Upon notice of termination our firm will
process a pro-rata refund of the unearned portion of the advisory fees charged in advance.

Financial Planning & Consulting clients may terminate their agreement at any time before the
delivery of a financial plan by providing written notice. For purposes of calculating refunds, all work
performed by us up to the point of termination shall be calculated at the hourly fee currently in effect.
Clients will receive a pro-rata refund of unearned fees based on the time and effort expended by our
firm.

Commissionable Securities Sales

Our firm and representatives do not sell securities for a commission in advisory accounts.

Item 7: Types of Clients & Account Requirements

Our firm has the following types of clients: Individuals and High Net Worth Individuals.

Our requirements for opening and maintaining accounts or otherwise engaging us:
   • Our firm requires a minimum account balance of $1,000,000 for our Comprehensive Portfolio
       Management service. This minimum account balance requirement is generally not negotiable
       and would be required throughout the course of the client’s relationship with our firm.
       Exceptions will be made on a case-by-case basis.

ADV Part 2A – Firm Brochure                    Page 7                     Capital Management Advisor Group, LLC