Naylor & Company Investments LLC

Item 5.    FEES AND COMPENSATION
Naylor & Company charges fees for its services based upon a percentage of assets under
management. Fees are negotiable, but do not exceed three percent (3%) of assets per year. Fees
are calculated and assessed quarterly in advance of the quarter (or in some instances, monthly in
advance of the month) for which services are provided. In most instances, fees are collected
directly from client accounts by the brokerage company used for the client account, typically,
Interactive Brokers. In some instances, Naylor & Company bills the clients directly for its fees.
Clients are also responsible for brokerage commissions and mutual fund fees. If Naylor &
Company is not paid within 30 days of an invoice, Naylor & Company is entitled to charge
interest and/or collect from Client, any, and all of its collection expenses, including reasonable
attorneys’ fees.
Clients may terminate their investment advisory contracts with thirty (30) days written notice. In
the event of termination, clients will receive a pro-rata refund of any prepaid fees for the
remainder of the quarterly billing period.
As mentioned in Item 4 above, Naylor and Company may enter into a Sub-Advisory
arrangement with other Investment Advisors by offers discretionary asset management services
by making certain managed portfolios available for such other Investment Advisers to offer to
their clients. When entering into a Sub-Advisor arrangement with another Investment Advisor,
Naylor and Company will be paid a percentage of the Investment Advisors’ fee it receives from
its client(s) that elect to have a portion of their assets managed by Naylor and Company.
Apart from the fees noted above from client accounts, neither Naylor & Company, nor its
representatives accept any fees or compensation from any brokerage, mutual fund company or
any other source Therefore, Naylor & Company has no incentive to select one investment over
another apart from the client’s own interest.
Clients should be aware that lower fees for comparable services may be available from other
investment advisory firms, however, those firms may or may not have obtained similar past
performance or use comparable approaches to selecting investments.

Item 7.    TYPES OF CLIENTS
Naylor & Company works with individuals, high net-worth individuals, families, pension and
profit-sharing plans, and businesses.

Clients must have a minimum of $100,000 to open an account with Naylor & Company. In some
cases, Naylor & Company may negotiate a lower minimum account size for some special
circumstances.