Financial Network Wealth Advisors LLC

Item 5 Fees and Compensation
Asset Management Services
FNWA offers direct asset management services to advisory Clients. FNWA charges an annual
investment advisory fee based on the total assets under management as follows:

             Assets Under Management                       Annual Fee     Monthly Fee
             First $500,000 ($0-$500,000)                    1.00%          .0833%
   Your next $500,000 ($500,000.01 - $1,000,000)             0.90%          .0750%
  Your next $1,000,000 ($1,000,000.01 - $2,000,000)          0.80%          .0667%
  Your next $3,000,000 ($2,000,000.01 - $5,000,000)           0.70%          .0583%
        Subsequent amounts ($5,000,000.01+)                   0.60%          .0500%

Our asset management fee is billed and payable, monthly in arrears, based on the average daily
balance for the previous month.

This is a tiered/blended fee schedule, the asset management fee is calculated by applying different
rates to different portions of the portfolio. FNWA may group certain related Client accounts for the
purposes of achieving the minimum account size and determining the annualized fee.

The annual fee is negotiable 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.). The calculation for
the average daily balance is based on the formula (A/D) x (F/P).

A = the sum of the daily balances in the billing period
D = number of days in the billing period
F = annual management fee
P = number of billing periods per year

Step 1: Based on monthly billing cycle: Calculate the average of the values of the Client’s account
over the course of the entire month to determine the average daily balance.

 Day    Balance      Day    Balance     Day     Balance
   1    $587,654      11    $587,664     21     $587,677
   2    $587,999      12    $588,009     22     $588,022
   3    $600,021      13    $600,031     23     $600,044
   4    $601,187      14    $601,197     24     $601,210
   5    $599,862      15    $599,872     25     $599,885
   6    $599,884      16    $599,894     26     $599,907
   7    $587,135      17    $587,145     27     $587,158
   8    $597,635      18    $597,645     28     $597,658
   9    $602,587      19    $602,597     29     $602,610
  10    $599,358      20    $599,368     30     $599,381
                                                                            $17,890,296
Total of days 1-30

  Average daily balance
                           $596,343.20
($17,890,296 (A)/30 (D)) =

Step 2: Calculate the annual fee:

AUM                 Annual Fee   Total
First $500,000.00 x .01 =        $5,000
Next $96,343.20 x .009 =         $867.09
Grand total for the year         $5,867.09

Step 3: Determine the monthly fee: $5867.09/12 (P)=$488.92

Range of Fees for Asset Management Services
For certain clients, FNWA charges an annual fee that varies up to 1.25% and is dependent upon the
market value of your assets under our management, the type and complexity of the asset management
services provided, as well as the level of administration requested either directly or assumed by the
client. Although this fee is higher than stated above, clients who do not utilize the services of a Sub-
Advisor, and pay additional fees to the Sub-Advisor, will be billed on this fee schedule. Assets in each
of your account(s) are included in the fee assessment unless specifically identified in writing for
exclusion. Our annual asset management fee is billed and payable, quarterly in advance, based on the
balance at end of billing period. If this Agreement is terminated prior to the end of the billing cycle, any
unearned fees will be refunded to the Client.

Lower fees for comparable services may be available from other sources. Clients may terminate their
account within five (5) business days of signing the Investment Advisory Agreement with no obligation
and without penalty. After the initial five (5) business days, the agreement may be terminated by
FNWA with thirty (30) days written notice to Client and by the Client at any time with written notice to
FNWA. For accounts opened or closed mid-billing period, fees will be prorated based on the days
services are provided during the given period. All unpaid earned fees will be due to FNWA. Client shall
be given thirty (30) days prior written notice of any increase in fees. Any increase in fees will be
acknowledged in writing by both parties before any increase in said fees occurs.

FNWA also utilizes the services of TownSquare Capital, LLC ("Sub-Advisor") to manage Clients’
investment portfolios. FNWA will enter into Sub-Advisor agreements with other registered investment
advisor firms. When using Sub-Advisors, the Client will pay additional fees. The Sub-Advisors fees will
be disclosed to the Client in the Investment Advisory Agreement.

ERISA Plan Services
The annual fees are based on the market value of the Included Assets and will not exceed 1%. The
annual fee is negotiable and will be charged as a percentage of the Included Assets. Fees may be
charged quarterly or monthly in arrears or in advance based on the assets as calculated by the
custodian or record keeper of the Included Assets (without adjustments for anticipated withdrawals by
Plan participants or other anticipated or scheduled transfers or distribution of assets). If the services to
be provided start any time other than the first day of a quarter or month, the fee will be prorated based
on the number of days remaining in the quarter or month. If this Agreement is terminated prior to the
end of the billing cycle, FNWA shall be entitled to a prorated fee based on the number of days during
the fee period services were provided or Client will be due a prorated refund of fees for days services
were not provided in the billing cycle.
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Item 7 Types of Clients
Description
FNWA generally provides investment advice to individuals, high net worth individuals, or charitable
organizations, corporations or business entities. Client relationships vary in scope and length of
service.

Account Minimums
In general, FNWA does 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.