Merit Financial Group LLC

Item 5. Fees and Compensation

Asset Management Fees
Direct Asset Management Fees
The annual investment advisory fee charged ranges up to a maximum of 2.50% of the assets
held in the account. Asset Management Fees are negotiable depending on the Investment
Advisor Representative (IAR) providing the management services, the market value of the
account, asset types, complexity of the client’s portfolio, the client’s financial situation, level
of portfolio trading activity, anticipated future assets, the relationship of the client to the IAR
and additional services requested or performed. Fee waivers or discounts can be offered to
Owners, Directors, Officers and associated persons of Merit and our related companies in
addition to family members and friends of associated persons of Merit which are not available
to clients.

It is important to note that it is possible that different investment advisor representatives
may charge different fees for providing the same types and level of service to clients. The
specific level of services you will receive and the fees you will be charged will be specified in

your advisory agreement. The annual fee for asset management services is divided and paid
quarterly through a direct debit to your account. The annual fee is billed either quarterly in
advance based on the market value of the assets under management on the last day of the
preceding quarter or quarterly in arrears based on the market value of the assets under
management on the last day of the calendar quarter. If management begins after the start of
the quarter, fees will be prorated accordingly. Our fees may be negotiable, and in certain
circumstances, clients could be provided a tiered fee schedule, a linear fee schedule, or a flat
fee (dollar amount or percentage of assets under management) could be charged for asset
management services. Depending on the fee schedule selected, you could pay more or less
than if a different fees schedule were utilized.

Under a tiered fee schedule the assets can be billed at more than one fee rate.
    Example: An account is billed under the following tiered fee schedule and the
       account has a billable market value of $500,000
            o $0 - $100,000 @ 1.50%
            o $100,000 - $250,000 @ 1.25%
            o Above $250,000 @ 1.00%
    This account would have the first $100,000 in Assets Under Management billed at
       1.50%;
    The next $150,000 would bill at $1.25%; and
    The Remaining $250,000 would be billed at $1.00%.

Under a linear fee schedule the assets are billed at one fee rate.
    Example: An account is billed under the following linear fee schedule and the
       account has a billable market value of $500,000
           o $0 - $100,000 @ 1.50%
           o $100,000 - $250,000 @ 1.25%
           o Above $250,000 @ 1.00%
    This account would have the full $500,000 billed at 1.00%

Merit may “household”, for fee billing purposes, multiple Client Accounts together within
the Advisory agreement at the Client’s request. Accounts to be combined under the same
billing household will be indicated as such on the Advisory agreement. This practice is
designed to allow you the benefit of an increased asset total, which could potentially cause
your account(s) to be assessed a reduced advisory fee based on the tiered fee schedule.
Accounts opened at a later date may be added to the same billing household. Client
understands that they are responsible for notifying the IAR and Merit of which Account(s)
Client would like to household under the Advisory agreement for fee billing purposes.
Household level billing will result in lower total fees than Account level billing.

Clients of independent contractor IARs of Merit will pay a platform fee in addition to the Asset
Management Fee charged by the IAR. The platform fee is 0.25% of AUM for accounts
managed by Merit’s corporate investment team and 0.35% of AUM for accounts managed by
the IAR. The platform fee will be fully disclosed to the client via the Advisory agreement and
will be charged on the same frequency as the Asset Management Fee.

For accounts that are billed in advance, fees will only be prorated for intra-quarter deposits
or withdrawals of $100,000 or greater for accounts that were active the full quarter. For
accounts we apply our fees in arrears, we make adjustments for all intra-quarter deposits or
withdrawals. For all accounts at all custodians, we begin calculating fees at the later of (1)
the date the Advisory agreement is signed, or (2) the date the account is funded.

Fees are generally automatically deducted from the client's managed account in accordance
with the authority granted by the client pursuant to the executed Advisory agreement. Clients
should receive account statements from the custodian at least quarterly, reflecting the value
of their account holdings and all deposits and disbursements from their account(s), including
the amount of the advisory fees paid to us.

Merit believes that its annual fee is reasonable in relation to the services provided and fees
charged by other investment advisors offering similar services/programs. However, our fees
may be higher or lower than fees charged by other financial professionals offering similar
services.

Clients who participate in the Wrap Program pay a wrap fee that includes both the investment
advisory fee and transaction execution costs. Although clients do not pay a separate
transaction charge for transactions in a Wrap account, clients should be aware that Merit
and/or your investment advisor representative pays the custodian of your account
transaction charges for those transactions. The transaction charges paid by us vary based on
the type of transaction (e.g., mutual fund, equity or ETF) and the security selected.
Transaction charges paid by Merit/IAR for equities and ETFs are $0 to $4.95 depending on
the custodian of your account. For mutual funds, the transaction charges range from $0 to
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Item 7. Types of Clients

We serve individuals, high net worth individuals, pension and profit-sharing plans,
corporations, trusts, estates, foundations, endowments, charitable organizations, or other
institutions. We may impose a minimum fee or minimum account balance for our asset
management services, as set forth in the Advisory agreement.

Our Retirement Plan Services are available to clients that are sponsors or other fiduciaries to
plans, including 401(k), 457(b), 403(b) and 401(a) plans. Plans include participant-directed
defined contribution plans and defined benefit plans. Plans may or may not be subject to
ERISA. We do not require a minimum asset amount for Retirement Plan Consulting Services.