Forness Financial LLC

Item 5 – Fees and Compensation

The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client shall sign an investment advisory agreement that details the responsibilities of Forness
Financial and the Client.

A. Fees for Advisory Services
Investment Management Services
Investment advisory fees are paid quarterly, at the end of each calendar quarter, pursuant to the terms of the
investment advisory agreement. Investment advisory fees are based on the market value of assets under
management at the end of each quarter.

                                                  Forness Financial LLC
                                     105 Chestnut Street, Suite 37, Needham, MA 02492
Page 6                                           Phone: (781) 400-2604
                                                 www.fornessfinancial.com

Investment advisory fees are based on the following schedule:

                     Assets Under Management                Annual Rate (%)
                    First $1,000,000                            1.00%
                    Second $1,000,000                           0.50%
                    Over $2,000,001                             0.25%

The investment advisory fee includes normal securities transaction costs incurred in the management of Client
accounts. The investment advisory fee in the first quarter of service is prorated from the inception date of the
account[s] to the end of the first quarter. Fees are negotiable and may differ by Client at the sole discretion of the
Advisor. The Client’s fees will take into consideration the aggregate assets under management with Advisor. All
securities held in accounts managed by Forness Financial will be independently valued by the Custodian. The
Advisor will conduct periodic reviews of the Custodian’s valuation to ensure accurate billing.

B. Fee Billing
Investment Management Services
Investment advisory fees will be calculated by the Advisor or its delegate and deducted from the Client‘s
account[s] at the Custodian. The Advisor or its delegate shall send an invoice to the Custodian indicating the
amount of the fees to be deducted from the Client’s account[s] at the respective quarter-end date. The amount
due is calculated by applying the quarterly rate (annual rate divided by 4) to the total assets under management
with Forness Financial at the end of each calendar quarter. Clients will be provided with a statement, at least
quarterly, from the Custodian reflecting deduction of the investment advisory fee. It is the responsibility of the
Client to verify the accuracy of these fees as listed on the custodian’s brokerage statement as the Custodian
does not assume this responsibility. Clients provide written authorization permitting Forness Financial to be paid
directly from their accounts held by the Custodian as part of the investment advisory agreement and separate
account forms provided by the Custodian.

C. Other Fees and Expenses
Forness Financial will absorb the securities transaction fees for normal discretionary trading. Client-directed
trades may result in securities transaction fees to the Client. Please see Item 4.D. above. Clients may incur
certain fees or charges imposed by third parties, other than Forness Financial, in connection with investments
made on behalf of the Client’s account[s]. For instance, all fees paid to Forness Financial for investment advisory
services are separate and distinct from the expenses charged by mutual funds and ETFs to their shareholders, if
applicable. These fees and expenses are described in each fund’s prospectus. These fees and expenses will
generally be used to pay management fees for the funds, other fund expenses, account administration (e.g.,
custody, brokerage and account reporting), and a possible distribution fee. A Client could invest in these
products directly, without the services of Forness Financial, but would not receive the services provided by
Forness Financial which are designed, among other things, to assist the Client in determining which products or
services are most appropriate for each Client’s financial situation and objectives. Accordingly, the Client should
review both the fees charged by the fund[s] and the fees charged by Forness Financial to fully understand the
total fees to be paid. Please see Item 12 – Brokerage Practices.

D. Advance Payment of Fees and Termination
Investment Management Services
Forness Financial is compensated for its services at the end of the quarter, after investment advisory services
are rendered. Either party may request to terminate the investment advisory agreement, at any time, by providing
advance written notice to the other party. The Client may also terminate the investment agreement within five (5)
business days of signing the Advisor’s agreement at no cost to the Client. After the five-day period, the Client will
incur charges for bona fide advisory services rendered to the point of termination and such fees will be due and
payable by the Client. Upon termination, the Client shall be responsible for investment advisory fees up to and
including the effective date of termination. The Client’s agreement with the Advisor is not transferrable without
the consent of the Client.

                                                  Forness Financial LLC
                                     105 Chestnut Street, Suite 37, Needham, MA 02492
Page 7                                           Phone: (781) 400-2604
                                                 www.fornessfinancial.com

E. Compensation for Sales of Securities
Forness Financial does not buy or sell securities and does not receive any compensation for securities
transactions in any Client account, other than the investment advisory fees noted above.

Insurance Agency Affiliation
Certain Advisory Persons of Forness Financial are licensed as independent insurance professionals. As an
...

Item 7 – Types of Clients

Forness Financial offers investment advisory services to individuals, high net worth individuals, trusts, and
estates. The amount of each type of Client is available on the Advisor's Form ADV Part 1A. These amounts may
change over time and are updated at least annually by the Advisor. Forness Financial generally requires a
minimum relationship size of $1,000,000, which may be reduced at the sole discretion of the Advisor.