Clay Northam Wealth Management LLC

ITEM 5 - FEES AND COMPENSATION
Fee Schedule

Investment Management Services
CNWM charges advisory fees for investment management services at an annual rate not to exceed
1.25% of the client’s total assets under management. Our standard fee rate may be negotiable based on
a number of factors, which include but are not limited to “grandfathered” accounts, related accounts,
and other structures that we may consider in special situations. Some accounts are billed under
different fee schedules honoring prior agreements. We also manage accounts for some family members
and friends without charge.

Clay Northam Wealth Management                       8                                     Part 2A Brochure

Participant Account Management
CNWM’s management fees for held-away accounts (see description in Item 4 – Advisory Business,
above) will be charged to the client either by (1) debiting another client brokerage account also
managed by CNWM; or (2) direct invoice. CNWM receives no compensation from Pontera for using their
platform; however, we pay a fee to Pontera for use of the service. Clients do not pay an additional fee
for use of this service.

Financial Planning Services
CNWM provides financial planning services without additional charge to clients that engage us for
investment management services.

Billing Method

Investment Management Services
CNWM’s advisory fees are payable quarterly in advance based on the account market value on the last
business day of the calendar quarter. The first payment is due after the first quarter under management.
The formula used for the calculation is as follows: (Annual Rate) x (Total Assets Under Management at
Quarter-End) / 4. For advisory fee calculation purposes, a calendar quarter is a period beginning on
January 1, April 1, July 1, or October 1 and ending on the day before the next quarter. A day is any
calendar day including weekends and holidays. Additions and withdrawals from the account made
during a quarter will be prorated to the date funds were received or withdrawn. For new accounts, the
number of days remaining in the quarter is the number of calendar days following the date a new
account is funded. The fee-based annuities we manage may be billed in advance or arrears depending
on where the policy is held.

Fees billed on assets held in client accounts that receive valuations less than quarterly will be calculated
using the most recent pricing data available through the product sponsor and/or the client’s custodian.

Clients generally authorize our advisory fees to be withdrawn directly from their custodian account. The
custodian will withdraw CNWM’s advisory fee upon receipt of our instructions, typically the first month
after the quarter in which advisory services were rendered. All clients will receive brokerage statements
from the custodian no less frequently than quarterly. The custodian statement will show the deduction
of the advisory fee. It is the client’s responsibility to verify the accuracy of the fee calculation. The
custodian will not determine whether the fee is properly calculated.

Sub‐Advisory Fees
Fees for sub-advisory services under Schwab’s Managed Accounts Select/Access Platform vary based
upon the schedules and requirements of the various managers participating in the Managed Account
Access Select program. The fees that CNWM receives for providing investment management services are
separate from the fees charged to clients by third party advisers. Fees under these programs may be
billed in arrears or advance, depending on each outside manager’s billing methodology.

CNWM does not receive a portion of the fees paid to third-party advisers that we recommend. Clients
should consider the additional cost of paying sub-advisory fees since we do not discount or offset our
standard management fee for clients that choose to participate in sub-advisory programs.

Clay Northam Wealth Management                       9                                      Part 2A Brochure

Other Fees and Expenses
CNWM’s fees do not include custodian fees. Clients pay all brokerage commissions, stock transfer fees,
and/or other similar charges incurred in connection with transactions in accounts from the assets in the
account. These charges are in addition to the fees client pays to CNWM. See Item 12 - Brokerage
Practices below for more information. In addition, any fund shares held in a client’s account are subject
to fund-related expenses and, if applicable, 12b-1 fees and/or early redemption fees on mutual funds.
The fund’s prospectus fully describes the fees and expenses. All fees paid to CNWM for investment
advisory services are separate and distinct from the fees and expenses charged by funds. Funds pay
advisory fees to their managers, which are indirectly charged to all holders of the fund shares.

Termination
Either party may terminate the advisory agreement at any time with written notice to the other party.
Upon termination of the agreement, any unearned advisory fees will be refunded on a pro-rata basis.

ITEM 7 - TYPES OF CLIENTS
CNWM generally provides discretionary investment advisory services to individuals, high net worth
individuals, trusts and estates, and individual participants of retirement plans. In addition, we offer
advisory services to charitable organizations, corporations, and pension/profit sharing plans.

Account Requirements
Generally, CNWM requires clients to maintain a minimum account size of $500,000. Withdrawal of
significant funds may result in a request for additional fund deposits to continue with management of
accounts. At our discretion, we may combine family accounts to meet the account size minimum or
reduce or waive the account minimum requirements.