Southern Financial Group LLC

Item 5 Fees and Compensation
Portfolio Management Fees
The annualized fee for portfolio management services will be charged as a percentage of assets under
management, according to the following schedule:

Assets Under Management            Annual Fee
First $500,000                     1.00%
Next $500,000                      0.85%
Next $1,000,000                    0.75%
Above $2,000,000                   0.50%

Our fees are billed quarterly, in advance, at the beginning of each calendar quarter based upon the
value (market value or fair market value in the absence of market value), of the client's account at the
end of the previous quarter. Clients may make additions to the account at any time. Additional assets
received into the account will be charged a pro rata fee based upon the number of days remaining in
the quarter at the time of the deposit. No fee adjustments will be made for partial withdrawals, nor for
account appreciation or depreciation within a billing period. Fees will be debited from the account in
accordance with the client authorization in the Investment Advisory Agreement.

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A minimum account size of $50,000 of assets under management and a minimum quarterly fee of $75
per account is required for this service. A setup fee of $1,000 will be charged per account, but waived
provided the account remains active for one entire year. These items may be negotiable under certain
circumstances. Southern Financial Group may group certain related client accounts for the purposes of
achieving the minimum account size and determining the annualized fee.

Limited Negotiability of Advisory Fees: Although Southern Financial Group has established the
aforementioned fee schedule(s), we retain the discretion to negotiate alternative fees on a client-by-
client basis. Client facts, circumstances and needs will be considered in determining the fee schedule.
These include the complexity of the client, assets to be placed under management, anticipated future
additional assets; related accounts; portfolio style, account composition, reports, among other factors.
The specific annual fee schedule will be identified in the contract between the adviser and each client.

Discounts, not generally available to our advisory clients, may be offered to family members and
friends of associated persons of our firm.

Financial Planning Fees
Southern Financial Group financial planning fees will be determined based on the nature of the
services being provided and the complexity of each client's circumstances. All fees are agreed upon
prior to entering into a contract with any client.

Our financial planning fees are calculated and charged on an hourly basis, ranging from $50 to $200
per hour. Although the length of time it will take to provide a Financial Plan will depend on each client's
personal situation, we will provide an estimate for the total hours at the start of the advisory
relationship. There is a minimum fee of $1,000 for this service.

These fees may be waived for clients who choose to use the firm's portfolio management services or
other services provided by the firms associated persons in their capacities as registered
representatives or insurance agents.

Consulting, Income Tax Preparation, Estate Settlement Services Fees
Southern Financial Group's fee for these services will be determined based on the nature of the
services being provided and the complexity of each client's circumstances. All fees are agreed upon
prior to entering into a contract with any client.

These fees are calculated and charged on an hourly basis, ranging from $50 to $200 per hour. Clients
are provided an invoice at the time the services are rendered. Clients have the option of paying the
invoice directly or having the fees deducted from their brokerage account(s).

Other Compensation
Transaction-based accounts: Persons providing investment advice on behalf of our firm are
registered representatives of Osaic Wealth, Inc. ("Osaic") (FINRA and SIPC member, and registered
broker-dealer) and are licensed as insurance agents with various insurance companies. As such, they
are entitled to receive commissions or other remuneration on the sale of insurance as well as other
products. In their capacity as registered representatives of Osaic, they may earn commissions and/or
compensation in connection with the purchase and sale of securities or other investment products,
including asset-based sales charges, service fees or 12b-1 fees, for the sale or holding, of mutual
funds. Compensation earned by these persons in their capacities as Registered Persons is separate
and in addition to our advisory fees. They do not earn commissions on the sale of securities or
investment products recommended or purchased in advisory accounts through our firm. This practice
presents a conflict of interest because persons providing investment advice to advisory clients on
behalf of our firm who are Registered Persons have an incentive to recommend investment products

                                                                             ©2017 National Compliance Services 800-800-3204

based on the compensation received rather than solely based on your needs. Persons providing
investment advice to advisory clients on behalf of our firm can select or recommend, and in many
instances will select or recommend, mutual fund investments in share classes that pay 12b-1 fees
when clients are eligible to purchase share classes of the same funds that do not pay such fees and
are less expensive. This presents a conflict of interest. You are under no obligation, contractually or
otherwise, to purchase securities products through any person affiliated with our firm who receives
compensation described above. However, when purchasing these securities and investment products
...

Item 7 Types of Clients
Southern Financial Group serves individuals, high net worth individuals, corporations, and other
businesses. As previously disclosed in Item 5, Fees and Compensation, our firm has established
certain initial minimum account requirements, based on the nature of the service(s) being provided. For
a more detailed understanding of those requirements, please review the disclosures provided in each
applicable service.