NFSG Corporation

Fees and Compensation - Item 5

Asset Management Fees

NFSG is compensated for our advisory services by assessing annual fee up to 2% based on client’s assets
under management. The specific fee is identified in the advisory agreement between NFSG and client.
NFSG may impose a minimum annual charge of $250.

NFSG Corporation
Form ADV Part 2A

We impose an account minimum of $25,000. NFSG may allow client accounts to be aggregated for fee
calculations and to achieve the minimum.

Asset management fees are billed monthly in arrears based on the average daily balance of the previous
month and are deducted from the client’s account. The account custodian will provide client with a
monthly statement reflecting the deduction of our advisory fee. If you choose to terminate our service,
our management fee will be pro-rated for the month in which the cancellation notice was given.

Financial Planning and Consulting Fees

NFSG’s fees for financial planning and/or consulting services are determined based on the nature of the
services being provided and the complexity of each Client’s circumstances. NFSG typically charges an
hourly fee, a onetime flat fee or an annual flat fee for financial planning services and/or consulting
services. However, for consulting services, IAIM reserves the right to charge an annual fee based on a
percentage of the Client’s investment assets.

Promoting for Third Party Asset Managers

NFSG will not directly charge its clients for advisory services pertaining to the referring clients to TPAMs.
Rather, the third-party managers that are managing the client’s assets will charge the fees for the services
provided. NFSG will enter into all appropriate agreements whereby NFSG will receive a portion of the fees
charged to the client.

Sub-Advisor Third Party Asset Managers

Sub-Advisor TPAMs bill NFSG, not client accounts. Part of the fee the client has agreed to pay NFSG for
Asset Management could be used to compensate sub-advisor TPAMs.

Additional Fees and Expenses

In addition to our advisory fees, clients are responsible for other fees and expenses charged by custodians
and imposed by affiliated broker dealer. Fees include, but are not limited to, corporate actions
adjustments, reorganization, ACAT fees, stock certificate services and any transaction related fees that
may be imposed by the custodian or broker dealer. All fees paid to us for investment advisory services are
separate and distinct from the fees and expenses charged by mutual funds to their shareholders which
are described in each fund’s prospectus. Such fees will generally include a management fee, other fund
expenses and a possible distribution fee.

Compensation for the Sale of Securities or Other Investment Products

Associated Persons who provide investment advice on behalf of our firm are also registered
representatives with our affiliated broker-dealer, NSC. NSC is a securities broker/dealer registered with
the Securities and Exchange Commission and the Financial Industry Regulatory Authority (“FINRA”). As a
Broker Dealer, NSC may receive commission-based sales concession for buying and selling securities. This
concession is separate and in addition to NFSG’s advisory fees. NFSG’s advisory clients are not obligated

NFSG Corporation
Form ADV Part 2A

to purchase the products or services of NSC. You may purchase or sell securities separately from your
NFSG advisory account at any brokerage firm of your choice other than NSC.

NFSG utilizes mutual funds in some investment strategies. Some share classes include additional
compensation to the firm such as 12b-1 trails. NFSG does not allow adviser representatives to receive the
additional compensation from 12b-1 fees, therefore, adviser representatives have no financial interest in
the choice of share classes. There may be other share classes in any given fund with no 12b-1 fees and
lower annual fees. NFSG uses its best efforts to find the most efficient share class when available for its
investment strategies, such as share classes designed for fee-based accounts. NFSG periodically reviews
mutual fund positions and may recommend clients to convert to a more efficient or cost-effective share
class.

We may recommend that you purchase a new security issue to be included in your investment portfolio(s).
Associated Persons of our firm may earn commissions on the sale of these types of securities as registered
representatives of NSC. Some products have the option to be purchased net commission, NAV, or at a
discount in advisory fee-based accounts. Other products may be issued at NAV or at a price determined
by an issuer in which case NFSG, affiliated broker dealer or representative may receive compensation.
See Item 10 for important disclosures regarding conflicts of interest and Item 12 regarding affiliated
brokerage firm.
Insurance Agents: Associated Persons who provide investment advice on behalf of NFSG may also be
licensed insurance agents. As an insurance agent, an Associated Person may receive commission-based
compensation for sale of insurance products. This commission compensation is separate and in addition
to NFSG’s advisory fees. Advisory clients are not obligated to purchase insurance products or services
offered by an Associated Person of NFSG.

The sale of mutual funds, annuity contracts, insurance instruments and other commission products
offered by Associated Persons of NFSG are intended to complement NFSG’s advisory services. However,
a conflict of interest exists due to the receipt of dual forms of compensation. Principals of NFSG regularly
review client transactions to ensure that NFSG is acting in the best interest of its clients.

NFSG recommends many types of securities, including mutual funds to its advisory clients. Where NFSG
does recommend a mutual fund to an advisory client, NFSG will generally recommend a no-load mutual
fund. In situations outside of NFSG’s advisory accounts where Associated Person(s) acting in the capacity
...

Types of Clients - Item 7

We offer investment advisory services to individuals, high net worth individuals, pension and profit-
sharing plan participants, trusts, estates, charitable organizations, and business entities.

We require a minimum of $25,000 to open and maintain an advisory account. We may, at our sole
discretion, waive this requirement.

Methods of Analysis, Investment Strategies and Risk of Loss - Item 8

The following are different methods of analysis that we may use when providing you with investment
advice:

    •   Cyclical Analysis – A form of fundamental analysis involving the process of making investment
        decisions based on the different stages an industry is at during a given point in time. The type of
        position taken will depend on firm specific characteristics, as well as where the industry is at in its
        life cycle.

NFSG Corporation
Form ADV Part 2A

    •   Fundamental Analysis – fundamental analysis is a technique that attempts to determine a
        security’s value by focusing on underlying factors that affect a company's actual business and its
        future prospects. The term refers to the analysis of the economic well-being of a financial entity
        as opposed to only its price movements.
    •   Technical Analysis – technical analysis is a technique that relies on the assumption that current
        market data (such as charts of price, volume, and open interest) can help predict future market
        trends, at least in the short term. It assumes that market psychology influences trading and can
        predict when stocks will rise or fall.

We may use one or more of the following investment strategies when advising you on investments:

    •   Long Term Purchases – securities held for over a year.
    •   Short Term Purchases – securities held for less than a year.
    •   Trading – securities held for less than 30 days.

The investment advice provided along with the strategies suggested by NFSG will vary depending on each
client’s specific financial situation and goals. This brief statement does not disclose all the risks and other
significant aspects of investing in financial markets. In light of the risks, you should fully understand the
nature of the contractual relationship(s) into which you are entering and the extent of your exposure to
risk. Certain investing strategies may not be suitable for many members of the public. You should carefully
consider whether the strategies employed will be appropriate for you considering your experience,
objectives, financial resources, and other relevant circumstances.

Under TPAM arrangements, each TPAM may have its own methods of analysis, investment strategies and
unique investment risks.

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 you intend to invest in.

Loss of Value: There can be no assurance that a specific investment will achieve its investment objectives
and past performance should not be seen as a guide to future returns. The value of investments and the
income derived may fall as well as rise and investors may not recoup the original amount invested.
Investments may also be affected by any changes in exchange control regulation, tax laws, withholding
taxes, international, political, and economic developments, and government, economic or monetary
policies.

Interest Rate Risk: Fixed income securities and funds that invest in bonds and other fixed income
securities may fall in value if interest rates change. Generally, the prices of debt securities rise when
interest rates fall, and their prices fall when interest rates rise. Longer term debt securities are usually
more sensitive to interest rate changes.

NFSG Corporation
Form ADV Part 2A

Credit Risk: Investments in bonds and other fixed income securities are subject to the risk that the
issuer(s) may not make required interest payments. An issuer suffering an adverse change in its financial
condition could lower the credit quality of a security, leading to greater price volatility of the security. A
lowering of the credit rating of a security may also offset the security's liquidity, making it more difficult
to sell. Funds investing in lower quality debt securities are more susceptible to these problems and their
value may be more volatile.

Our investment advice and strategies vary and are dependent upon each client’s specific financial
situation, goals, and objectives. This brief statement does not disclose all of the risks and other significant
aspects of investing in financial markets. In light of the risks, you should fully understand the nature of the
contractual relationship(s) into which you are entering and the extent of your exposure to risk. Certain
investing strategies may not be suitable for many members of the public. You should carefully consider
whether the strategies employed will be appropriate for you in light of your experience, objectives,
financial resources and other relevant circumstances.