Interwealth Management LLC

Item 5 – Fees and Compensation
      The Investment Advisory contract executed by clients and InterWealth Management, LLC
has no expiration date and can be terminated with written notice by either InterWealth Management
or Client and is effective immediately. If the contract is terminated at a time between monthly
billing dates, InterWealth Management shall be entitled to payment of a portion of the monthly
billing fee, equal to such monthly fee multiplied by the ratio which the number of days past in the
month as of the termination date bears to the number of days in the month. Over-payments of
management fees, if any, will be promptly returned to the Client. In special circumstances, as in a
situation where InterWealth Management is in competition with another firm’s fee schedule or if
an account size warrants a discount, some fees may be negotiated at levels less than the stated
annual advisory fee of 1.5% to .50%. The following is the fee schedule:
Under $500,000            1.5%                 $500,000-$1 Million          1.0%
$1 Million-$2 Million      .75%                 Over $2 Million               .50%
        This is a blended fee schedule; we may charge up to 1% of AUM until the account crosses
$2 Million before a discount is warranted.
        Based on prior written authorization, the Client’s fee shall be paid monthly in arrears by
the Custodian out of the income or assets held in the Client’s account. A Client, with written notice,
can elect to pay the fee directly to InterWealth Management. The monthly fee will be due
immediately upon Client’s receipt of the billing invoice, which is sent directly from InterWealth
Management.
        InterWealth Management’s fees are exclusive of brokerage commissions, transaction fees,
and other related costs and expenses which shall be incurred by the Client. Clients may incur
certain charges imposed by Custodians, Brokers, third party investments and other third parties
such as fees charged my managers, custodial fees, deferred sales charges, odd-lot differentials,
transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage
accounts and securities transactions. Mutual funds and exchange traded funds also charge internal
management fees, which are disclosed in a fund’s prospectus. Such charges, fees and commissions
are exclusive of and in addition to InterWealth Management’s fee, and InterWealth Management
shall not receive any portion of these commissions, fees, and costs.

        Item 12 further describes the factors that InterWealth Management considers in selecting
or recommending broker-dealers for Client transactions and determining the reasonableness of
their compensation (e.g., commission).

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Item 7 – Types of Clients
     InterWealth Management provides portfolio management services to individuals, high net
worth individuals, trust accounts or closely held business owners. InterWealth Management has a
$500,000 minimum per household for the relationship and will advise on retirement plans, IRAs
and taxable money. InterWealth Management can make exceptions to the minimums for close
friends and family.

Item 8 – Method of Analysis, Investment Strategies and Risk of Loss
        InterWealth Management’s main objective is to match our client’s risk tolerance with their
portfolio. InterWealth Management will analyze the assets, savings rate, time frame until
retirement, and most importantly, a client’s attitude towards risk. InterWealth Management will
monitor the risk and reward for all portfolios and uses a vetted series of diagnostic questionnaires
to identify risk portfolios. InterWealth Management recommends diversified Mutual Fund and
ETF portfolios for clients and utilizes the research capabilities of Russell Investments, BlackRock,
and Morningstar Independent Investment Research to evaluate the performance of fund managers.
InterWealth Management uses various asset allocated models to create a client’s portfolio, often
integrating existing holdings into these portfolios. The primary strategy of InterWealth
Management is to buy and hold with quarterly rebalancing and the reinvesting of dividends. When
appropriate, InterWealth Management will occasionally overweight in specific asset classes.
InterWealth Management discloses at all times as with all investments that there are risks
associated with mutual funds and that past performance is no guarantee of future performance.