Clayton Financial Group LLC

Item 5 – Fees and Compensation

A.     Fee Schedule
ASSET MANAGEMENT
CFG offers asset management services to advisory Clients. CFG charges an annual investment
advisory fee based on the total assets under management as follows:

              Assets Under Management                           Maximum Annual Fee

                     $0 - $2,000,000                                     1.00%

                $2,000,001 - $5,000,000                                  0.75%

               $5,000,001 – $10,000,000                                  0.50%

               $10,000,001 - $20,000,000                                 0.40%

               $20,000,001 - $30,000,000                                 0.35%

               $30,000,001 - $50,000,000                                 0.30%

               $50,000,001 - $75,000,000                                 0.25%

                    Over $75,000,000                                  Negotiable

This is a blended fee schedule, meaning different asset levels are assessed different fees, as shown
above. Fees are billed quarterly in advance based on the amount of assets managed as of the close of
business on the last business day of the previous billing period. Lastly, please note that CFG may

group certain related Client accounts, often known as “householding”, for the purposes of achieving
the minimum account size and determining the annualized fee.
FINANCIAL PLANNING AND CONSULTING
CFG charges an ongoing fixed fee for financial planning and consulting. Prior to the planning process
the Client will be provided an estimated plan fee which will be based on the complexity of the
engagement. CFG reserves the right to waive the fee should the Client implement the plan through
CFG. Services are offered based on an annual fee to never exceed $200,000, charged quarterly in
advance. Services will continue year over year until canceled, in writing, by either CFG or the Client.

B.     Payment of Fees
Asset Management Fees are deducted directly from the Client’s Account.

Financial Planning and Consulting Fees are generally invoiced directly to the Client but may also be
deducted from another account held with CFG.

CFG, in its sole discretion, may charge a lesser investment advisory fee based upon certain criteria
(e.g., historical relationship, type of assets, anticipated future earning capacity, anticipated future
additional assets, dollar amounts of assets to be managed, related accounts, account composition,
negotiations with Clients, etc.).

For all services, Clients may terminate their engagement with CFG within five (5) business days of
signing an Agreement with no obligation and without penalty. After the initial (5) business days, the
Agreement may be terminated by CFG with thirty (30) days written notice to Client and by the Client
at any time with written notice to CFG. For accounts opened or closed mid-billing period, fees will be
prorated based on the days services are provided during the given period. In the case of hourly
engagements, fees will be prorated based on the work completed at the stated hourly rate. All unpaid
earned fees will be due to CFG and all unearned fees will be refunded to the Client. Any increase in
fees will be acknowledged in writing by both parties before any increase in said fees occurs.

C.     Additional Fees
Custodians may charge brokerage commissions, transaction fees, and other related costs on the
purchases or sales of mutual funds, equities, bonds, options, margin interest, and exchange-traded
funds. Mutual funds, money market funds, and exchange-traded funds may also charge internal
management fees, which are disclosed in the fund’s prospectus. CFG does not receive any
compensation from these fees. All of these fees are in addition to the management fee you pay to CFG.
For more details on the brokerage practices, see Item 12 of this brochure.

D.     Prepayment of Fees
Asset Management, Financial Planning and Consulting fees are charged in advance.

E.     External Compensation for the Sale of Securities
CFG does not receive any external compensation from the sale of securities.

Item 7 – Types of Clients & Account Minimums

CFG’s Clients are generally individuals, small businesses, trusts, estates, high net-worth individuals,
and charities. Client relationships vary in scope and length of service.

There is no minimum account size and Clients are not required to have a certain amount of
investment experience or sophistication.