CLF Asset Management Inc

Item 5 Fees and Compensation
Financial Consulting Services
We charge only an hourly fee of $195 for our consulting services. Our consulting fee is non-negotiable
and payable upon completion of the agreed upon consulting services. You may terminate the
advisory consulting services agreement upon written notice to our firm. Since fees are payable in
arrears, you will be responsible for a prorated fee based on services performed.

Typically the hours spent for each previously described service is as follows:

    1. Income Analysis/Cash Flow/Budget Analysis – Typical billing time is between two and five
       hours and is normally delivered within three to six weeks from the information gathering
       session.
    2. Life Insurance Review/Disability Insurance Review – Typical billing time is between two and five
       hours and is normally delivered within three to six weeks from the information gathering
       session.
    3. Employee Benefits Planning – Typical billing time is between four and eight hours and is
       normally delivered within three to six weeks from the information gathering session.

4. Investment Analysis/Asset Allocation – Between four and eight hours per quarter of each

       calendar. For those clients who choose the hourly rate they will be billed for each hour of
       preparation and consultation. For those clients that choose a flat fee, they will be billed in
       arrears. For those that choose an asset-based charge the preparation and consultation is
       included in the asset based fee so no other billing will be required.
    5. Retirement Planning – Typical billing time is between 10 and 20 hours and is normally delivered
       within three to six weeks from the information gathering session.
    6. Estate Planning – Typical billing time is between four and eight hours and is normally delivered
       within three to six weeks from the information gathering session.
    7. Charitable Giving - Typical billing time is between two and five hours and is normally delivered
       within three to six weeks from the information gathering session.
    8. Education Needs Analysis – Typical billing time is between 4-8 hours and is normally delivered
       within three to six weeks from the information gathering session.
    9. Estate Administration – Typical billing time is between 4-8 hours and is normally delivered
       within three to six weeks from the information gathering session.
    10.     Small Business Tax Planning – Typical billing time is between 10-20 hours and is normally
       delivered within three to six weeks from the information gathering session.

Financial Planning Services
Some clients however would like to have comprehensive planning done. Comprehensive financial
planning services require many hours of planning and the ability to charge a one-time fee with a pricing
cap will allow for complex plans to be put together without the client having to worry about the amount
of time they will be billed for.

We only charge a fixed fee for our financial planning services, which generally ranges from $1,000 to
$3,000 and will be determined before signing the written agreement. Our fees are non-negotiable and
payable on completion of the contracted services. We will not require prepayment of a fee more than
six months in advance and in excess of $500. Should the engagement last longer than six months
between acceptance of financial planning agreement and delivery of the financial plan, any prepaid
unearned fees will be promptly returned to you less a pro rata charge for bona fide financial planning
services rendered to date.

Each of the eight modules offered a la carte as previously described will be presented with the
corresponding fixed fees prior to the signing of the written Financial Planning Services Agreement:
    1.     Income Analysis/Cash Flow/Budget Analysis - $1000
    2.     Life Insurance Review/Disability Insurance Review - $1000
    3.     Employee Benefits Planning - $1000
    4.     Investment Analysis/Asset Allocation - $1000
    5.     Retirement Planning - $2000
    6.     Estate Planning - $1000
    7.     Charitable Giving - $1000
    8.     Education Needs Analysis - $1000

The maximum fee charged for financial planning will be $3,000. Said another way you can get all
modules for $3,000 or pick a la carte to determine your one-time or fixed fee.
CLIENTS will determine whether they would like CLF Asset Management, Inc. to perform Financial
Consulting Services or Financial Planning Services.

At our discretion, we may offset our financial planning fees to the extent you implement the financial
plan through our Portfolio Management Service.

You may terminate the financial planning agreement by providing written notice to our firm. Since fees
are payable in arrears, you will be responsible for a prorated fee based on services performed.

Portfolio Management Services
Our annual fee for portfolio management services is a flat fee that will range from .95% to .65% of
assets under management.

All clients will be billed at the annual current rates based on the following Tiered Asset Schedule:

$0 - 499,999.99           $500,000 - $999,999.99          $1,000,000 - $1,999,999.99         $2,000,000.00 +
      .95%                        .90%                              .80%                          .65%

This fee is non-negotiable.

Our annual portfolio management fee is billed and payable monthly in advance based on the value of
your account on the last day of the previous month.

If the portfolio management agreement is executed at any time other than the first day of a calendar
month, our fees will apply on a pro rata basis, which means that the advisory fee is payable in
proportion to the number of days in the month for which you are a client.

At our discretion, we may combine the account values of family members living in the same household
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Item 7 Types of Clients
We offer investment advisory services to individuals to include high net worth individuals, corporations,
pension and profit-sharing plans.

In general, we do not require a minimum dollar amount to open and maintain an advisory account;
however, we have the right to terminate your Account if it falls below a minimum size which, in our sole
opinion, is too small to manage effectively.