Networth Financial Services LLC

FEES AND COMPENSATION (Item 5)
  Advisory Fees
     NetWorth Financial earns its fees and compensation by providing financial planning and investment/-
     portfolio management advice. Our advisory fees for services are as follows:

      1. Fees for Financial Planning & Consulting Services
         Our fees for standalone financial planning and consulting services will be assessed at a fixed rate of
         between $2,500 and $15,000 depending on time and complexity Upon initial engagement, clients will
         be provided a fee invoice or in the case of a supplement to other services, advised of fees before additional
         services are provided.

                                                                            Net Worth Financial Services, LLC

    2. Fees for Portfolio Management Services
       Our fee schedule for Portfolio Management Services is as follows:

                Assets Under Management                          Maximum Annual Rate
                      $-0- to $249,999                                  1.50%
                    $250,000 to $499,999                                1.40%
                   $500,000 to $749,999                                 1.25%
                   $750,000 to $999,999                                 1.10%
                  $1,000,000 to $1,999,999                             0.95%
                 $2,000,000 to $2,999,999                              0.85%
                 $3,000,000 to $3,999,999                               0.75%
                 $4,000,000 to $4,999,999                              0.70%
                 $5,000,000 to $5,999,999                              0.65%
                 $6,000,000 to $6,999,999                              0.60%
                       $7,000,000 +                                   Negotiable

                                      Sample Fee Calculation:
                                        Investments of $785,000
                                           $785,000 @ 1.10%
                            Annual fee of $8,635 or Quarterly fee of $2,158.75

       Our Portfolio Management fee schedule is negotiable and the final fee is outlined in our Investment
       Management Agreement.

Billing Procedures

   The Firm bills clients in advance (at the beginning of the billing period) for Portfolio Management Services. It
   is customary for the Firm to receive written authorization to deduct advisory fees directly from clients’
   accounts, except as noted herein. With respect to Financial Planning services, clients pay advisory fees by
   check. Please review the billing procedures below for specific details:

   1. Billing for Financial Planning Services Billing
      Upon engagement for financial planning or consulting services, we will provide a fee invoice for. This fee
      is generally negotiable. With respect to billing, fifty percent (50%) of the fee is due to the Firm prior to
      commencing services. The balance is due on the first anniversary of the execution of the Financial
      Planning agreement or upon conclusion of the consulting session(s). We also provide ongoing financial
      planning services for a quarterly planning fee. All fees and fee payment arrangements will be
      clearly set forth in the financial planning agreement signed by the Firm and the client. Invoices
      will be transmitted to clients, either in person, electronically, or by mail and payment is due upon receipt.

   2. Billing for Portfolio Management Services
      The fees for portfolio management services are billed and due quarterly in advance. We send the
      advisory fee calculations electronically, to the account custodian by the beginning of each calendar
      quarter (i.e., Jan., Apr., July, and Oct.). Fee calculations are based on the value of the account(s) as of
      the last day of the previous calendar quarter (i.e., Dec., Mar., Jun., and Sept.). Portfolio management
      fees shall be prorated for each additional contribution made during the applicable calendar quarter. By
      agreement, client advisory fees are deducted directly from the specified client account(s).

Other Fees & Expenses

   Clients will also incur additional fees and expenses related to management of investments and advisory
   service provisions. These fees may include, but are not limited to no-load mutual fund ticket charges,
   brokerage transaction costs, deferred sales charges on previously purchased mutual funds, IRA maintenance
   fees and other legal or transfer fees. The broker-dealers, mutual fund companies, and other custodians who
   provide account services charge these fees (“third party fees”) and clients are responsible for payment of all

                                                                             Net Worth Financial Services, LLC
    third party fees and expenses. It is important to note that the advisory fees paid to our firm are separate and
    distinct from the maintenance fees and transaction expenses charged by these third parties. Please refer to

TYPES OF CLIENTS (Item 7)
     We generally provide investment advice to individuals, high net-worth individuals, pension and profit
     sharing plans, charitable organizations, foundations, endowments, trust programs, and other business
     entities.
     Our minimum investment size or value to establish an account is generally $100,000. Please note that the
     minimum may be waived based on the anticipation of additional funds to meet minimum accounts value
     within a reasonable period. The account minimum may also be waived based on other criteria and at the sole
     discretion of the Firm.

METHODS OF ANALYSIS, INVESTMENT STRATEGIES, AND RISK OF LOSS (Item 8)
  Methods of Analysis and Investment Strategies
     NetWorth Financial generally utilizes fundamental analysis methods to analyze investments. Our main
     sources of information include, but are not limited to, research materials prepared by others, inspection of
     corporate activities, financial newspapers and magazines, and annual reports, prospectuses, and corporate
     press releases.
     Fundamental analysis is a method of evaluating a company or security by attempting to measure its intrinsic
     value. In other words, trying to determine a company’s or a security’s true value by looking at all aspects of
     the business, including both tangible factors (e.g., machinery buildings, land, etc.) and intangible factors
     (e.g., patents, trademarks, “brand” names, etc.). Fundamental analysis also involves examining related
     economic factors (e.g., overall economy and industry conditions, etc.), financial factors (e.g., company debt,
     interest rates, management salaries and bonuses, etc.), qualitative factors (e.g., management expertise,
     industry cycles, labor relations, etc.), and quantitative factors (e.g., debt-to-equity and price-to-equity
     ratios). The end goal of performing fundamental analysis is to produce a value that an investor can compare
     with the security's current price in hopes of determining what sort of position to take with that security
     (underpriced = buy, overpriced = sell or short). This method of security analysis is considered the opposite
     of technical analysis. Fundamental analysis is about using real data to evaluate a security's value. Although
     most analysts use fundamental analysis to value stocks, this method of valuation can be used for just about
     any type of security.
     The investment strategies of our firm consist of strategic asset allocation and asset diversification. Our
     general recommendations consist of value stocks, exchange traded funds, mutual funds, and fixed income
     securities for long-term growth and income.
  Material Risks of Methods of Analysis
     Furthermore, although we utilize common investment analysis methods and strategies, there remains some
     level of material risk. We utilize fundamental analysis methods that measure the risks of companies by
     formulating assumptions based on historical financial representations. Although we use valid data sources,
     examine expense ratios, review return and risk ratings extensively, refer to economic indicators, review the
     implications of monetary policy, and consider management team tenure, our strategies are implemented as a
     result of the assumptions derived from the analysis of historical data. The results of investment strategies
     derived from this method of analysis are not guaranteed and past performance of investment is not indicative
     of future financial returns.
  Material Risks of Investment Strategies
     Clients should be aware that investing in securities involves a risk of loss that they should be
     prepared to bear.
     Past performance is not indicative of future results. Therefore, you should never assume that future
     performance of any specific investment or investment strategy will be profitable. Investing in securities
     (including stocks, mutual funds, and bonds, etc.) involves risk of loss. Further, depending on the different
     types of investments there may be varying degrees of risk. You should be prepared to bear investment loss
     including loss of original principal. Because of the inherent risk of loss associated with investing, our firm is
     unable to represent, guarantee, or even imply that our services and methods of analysis can or will predict
     future results, successfully identify market tops or bottoms, or insulate you from losses due to market
     corrections or declines.
     There are certain additional risks associated with investing in securities, as described below:
     Recommendation of Particular Types of Securities: We provide advice on various types of securities
     and we do not necessarily recommend one particular type of security over another since each client has

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different needs and different tolerance for risk. Each type of security has its own unique set of risks
associated with it and it would not be possible to list here all of the specific risks of every type of investment.
Even within the same type of investment, risks can vary widely. However, in very general terms, the higher
the anticipated return of an investment, the higher the risk of loss associated with it.
General Investment Risk: All investments come with the risk of losing money. Investing involves
substantial risks, including complete possible loss of principal plus other losses and may not be suitable for
many members of the public. Investments, unlike savings and checking accounts at a bank, are not insured
by the government to protect against market losses. Different market instruments carry different types and
degrees of risk and you should familiarize yourself with the risks involved in the particular market
instruments in which you intend to invest.
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