Natwealth Management USA Inc

Item 5. Fees and Compensation
Fees and other requirements may vary as a result your overall relationship with us, and clients make
payments to us in their discretion in respect of research services received.

Research Analysts whose services we provide are not directly compensated based on the sale of securities
that may occur following a client’s use of Research Services; however, the broader compensation pool
from which Research Analyst compensation is paid is funded in part by compensation that we receive for
Research Services, and by equity brokerage commission revenue and other revenues generated by us or
our affiliates.

If you decide to execute trades through one of our affiliates, you will incur transaction costs such as
commissions, markups, and/or spreads. Our affiliates and/or certain of their personnel will receive fees
and compensation for these products and services, and the Research Analysts may indirectly receive
compensation related to the same. You are not required to obtain such services from our affiliates. Such
transaction costs are exclusive of any payments made to us in respect of Research Services.

Clients may but are not required to utilize any affiliated broker‐dealer’s brokerage services or any other
affiliate’s services. However, clients may elect to use other products or services available from or through
a NatWealth affiliate. In each such case, the client would pay additional compensation to the relevant
affiliate for these additional services. These practices create potential conflicts of interest that may give
NatWealth and our affiliates’ sales representatives an incentive to recommend other products and services
based on the compensation received (whether by the individual making the recommendation, by the
affiliate firm, or both), rather than on your needs. See section entitled Participation or Interest in Client
Transactions for more information about the receipt of compensation by us or our affiliates for the sale
of securities and other investment products. We address this conflict through disclosure in this Brochure.

We do not charge fees for Research Services in advance. We do not manage client assets and do not
deduct fees from client assets.

CONDUCTING SECURITIES BUSINESS THROUGH OUR AFFILIATES

You are neither required to act on any of the information provided through Research Services, nor, as
noted above, are you required to transact business with any affiliate of ours if you choose to utilize any
information or implement any strategies, recommendations or other ideas contained in research reports
or other research materials obtained in connection with Research Services.

Research Services are completed upon the delivery thereof. Thereafter, if you choose to effect any of the
investment recommendations or strategies made in Research Services through our affiliates, our affiliate
will be acting solely as a broker-dealer, not as an investment adviser.

LIMITATIONS ON NATWEALTH’S ROLE AND RESEARCH SERVICES

Your relationship with us is strictly limited to the provision of Research Services, and does not extend to
any brokerage, or other investment advisory or other arrangements or services that you may have, or
enter into, with us or any of our affiliates. If you desire to engage us or our affiliates for additional services,
whether brokerage, investment advisory or otherwise, you should carefully consider the differences
among these types of services before using them and must enter into a separate agreement for such
services. Any such arrangement will be separate and apart from any relationship created in respect of
Research Services.

Our affiliates include broker-dealers and offer brokerage services to clients, including trade execution.
There are important differences between brokerage and investment advisory services, including the type
of advice and assistance provided, the fees charged, and the rights and obligations of the parties.
Brokerage services are regulated under different laws and rules than advisory services. Among our
affiliates’ many obligations as a broker-dealer, they will execute transactions upon your instruction, and
deal fairly with you. As an investment adviser, we must act solely in your best interest, provide certain
specific disclosures and generally act in accordance with the standards of a fiduciary as that term is
interpreted under applicable law. Of course, the above is an exceedingly brief summary, and numerous
laws and regulations apply to each capacity as well as to the specific products or services being provided.
It is important for you to understand these differences, particularly when determining which service or
services you might select.

Research reports are prepared solely as of the date indicated therein, and NatWealth does not undertake
to update any written materials we provide to you in connection with our Research Services. We do not

provide continuous advice or supervision with respect to any securities that are the subject of our
Research Services.

SOURCES OF REVENUE

In addition to the fees received in respect of the Research Services, we also receive fees in respect of our
Wealth Management services, which are described in our Wealth Management Services Brochure.

Item 7. Types of Clients
We provide Research Services to institutional clients, such as hedge funds, private equity funds, pension
funds, mutual funds, certain governmental entities, insurance companies, trusts and banks, and/or their
consultants and investment advisers. Research clients are not required to open or maintain an account
with us, or to enter into any transaction with any affiliate of ours, in order to receive Research Services.