Networth Literacy Inc

Item 5: Fees and Compensation

A. Fee Schedule

Portfolio Management Fees

For clients with passive investment portfolio where nWCapital is actively monitoring and
rebalancing account as needed but not placing trades, the qualified clients will pay an
annual fee of 1.50% of assets under management.

Performance-Based Fees for Portfolio Management

For actively traded portfolios, qualified clients will pay an annual fee of 2.00% of assets
under management along with a 20.00% performance fee based on capital appreciation. If
the client's portfolio rises in value, the client will pay 20.00% on that increase in value, but
if the portfolio drops in value, the client will not incur a new performance fee until the
portfolio reaches the last highest value, adjusted for withdrawals and deposits, which is
generally known as a “high water mark.”

These fees are generally negotiable and the final fee schedule will be memorialized in the
client’s advisory agreement. This service may be canceled with 30 days’ notice. Clients
must pay the prorated performance-based fees for the billing period in which they
terminate the Investment Advisory Contract up to and including the day of termination.

Financial Planning Fees

Fixed Fees

The negotiated fixed rate for creating client financial plans is between $50 and $5,000.

Hourly Fees

The negotiated hourly fee for these services is between $50 and $1,000.

Clients may terminate the agreement without penalty, for full refund of nWCapital’s fees,
within five business days of signing the Financial Planning Agreement. Thereafter, clients
may terminate the Financial Planning Agreement generally upon written notice.

B. Payment of Fees

Payment of Portfolio Management Fees

Portfolio management fees are withdrawn directly from the client's accounts with client's
written authorization on a quarterly basis. Fees are paid in arrears.

Payment of Performance-Based Portfolio Management Fees

Performance-based portfolio management fees are withdrawn directly from the client's
accounts with client's written authorization on a quarterly basis. Fees are paid in arrears.

Payment of Financial Planning Fees

Financial planning fees are paid via wire.

Fixed financial planning fees are paid in arrears upon completion.

Hourly financial planning fees are paid in arrears upon completion.

C. Client Responsibility For Third Party Fees

Clients are responsible for the payment of all third-party fees (i.e. custodian fees,
brokerage fees, mutual fund fees, transaction fees, etc.). Those fees are separate and
distinct from the fees and expenses charged by nWCapital. Please see Item 12 of this
brochure regarding broker-dealer/custodian.

D. Prepayment of Fees

nWCapital collects its fees in arrears. It does not collect fees in advance.

E. Outside Compensation For the Sale of Securities to Clients

Neither nWCapital nor its supervised persons accept any compensation for the sale of
investment products, including asset-based sales charges or service fees from the sale of
mutual funds.

Item 7: Types of Clients

nWCapital generally provides advisory services to the following types of clients:

       ❖       Individuals
       ❖       High-Net-Worth Individuals

There is no account minimum for any of nWCapital’s services.