Nova Wealth Management Inc

Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
 NWM bases its fees on a percentage of assets under management and hourly charges.

 ASSET MANAGEMENT
 NWM offers discretionary direct asset management services to advisory clients. Fees
 will vary depending on the investment in the portfolio. Clients shall pay an annual
 advisory fee for each account based on total assets under management. The Annual
 Blended Advisory Fee Schedule is below:

 $0.00 - $250,000.00                     1.5%
 $250,000.00 - $500,000.00               1.2%
 $500,000.00 - $1,000,000.00             1.05%
 $1,000,000.00 - $3,000,000.00           0.90%
 $3,000,000.00 - $5,000,000.00           0.75%
 $5,000,000.00+                          0.60%
 Example of how fees are calculated below:
 Annual Rate (%) Amount
 0.00 250,000.00                1.5000                 937.50
 250,000.00 500,000.00          1.2000                 750.00
 500,000.00 1,000,000.00        1.0500                 1,312.50
 1,000,000.00 1,289,334.11      0.9000                 651.00

     Management Fee 3,651.00

 Lower fees for comparable services may be available from other sources The amount of
 the fees will be as agreed upon between NWM and the client within the Investment
 Advisory Agreement. If Charles Schwab or Fidelity is the custodian, the fee is billed

                              Nova Wealth Management, Inc.

quarterly in advance based on the value of assets managed as of the last business day of
the previous quarter. Initial fees for partial quarters are pro-rated. If Interactive
Brokers is the custodian, fees are calculated daily based on the account’s market value,
including cash holdings, and charged quarterly in arrears. The annual fee is paid to and
retained by NWM and the advisory representatives.

Advisory fees are either, (1) calculated by and deducted from the clients' account by the
account’s custodian, based upon written instructions from the client, or (2) calculated by
NWM and deducted from the client’s account by the custodian, based upon written
authorization from the client and written instructions from NWM. For situations where
the custodian is responsible for calculating and deducting the fee, NWM does not have an
arrangement under which it is authorized or permitted to withdraw client funds or
securities maintained with a custodian upon the investment advisor’s instruction to the
custodian.    For situations where NWM is responsible for calculating the fee and
providing instructions to the custodian, NWM intends to use the safeguards required in
the Florida Administrative Code, including sending the custodian an invoice of the
amount of the fee to be deducted from the client’s account, and send the client an invoice
containing the formula used to calculate the fee, the amount of assets under
management on which the fee is based, and the time period covered by the fee.

Nova Wealth Management has a minimum annual fee of $1,000.00 billed quarterly at the
rate of $250.00 per quarter. This fee applies to any client whose household billing is less
than $250.00 per quarter.

Lower fees for comparable services may be available from other sources. Clients may
terminate their account within five (5) business days of signing the Investment Advisory
Agreement for a full refund. Clients may terminate advisory services with thirty (30)
days written notice. For accounts closed mid-quarter, the client will be entitled to a pro
rata refund for the days service was not provided in the final quarter. Client shall be
given thirty (30) days prior written notice of any increase in fees, and client will
acknowledge, in writing, any agreement of increase in said fees.
MANAGEMENT SERVICES FOR HELD-AWAY ASSETS FEES -PONTERA
All clients engaging in Investment Management Services must either engage in
Comprehensive Financial Planning or meet a $150,000 minimum of assets under
management. This fee will be assessed and billed in advance on a quarterly basis.
Specifically, the exact amount charged is determined by the account value at the end of
the quarter. If the accounts are activated in Pontera mid-quarter, the client will be billed
in arrears for the number of days in the prior quarter, as well as the next quarter in
advance. The advisory fee is a blended fee and is calculated by assessing the percentage
rates using the predefined levels of assets as shown in the above chart and applying the
fee to the daily average of the account value or the account value as of the last day of the
previous quarter (per the paragraph above), resulting in a combined weighted fee. For
example, an account valued at $2,000,000 would pay an effective fee of 1% with the
annual fee being $20,000 (a quarterly fee of $5,000). Investment management fees are
generally directly debited on a pro rata basis from client accounts. The exception for this
is directly-managed held-away accounts, such as 401(k)’s. As it is impossible to directly

                               Nova Wealth Management, Inc.

 debit the fees from these accounts, those fees will be assigned to the client’s taxable
 accounts of their choice. If the client does not have a taxable account, those fees will be
 billed directly to the client. Accounts initiated or terminated during a calendar quarter,
 the client will be reimbursed for the number of days in the quarter the NWM was not
 managing the account(s).An account may be terminated with written notice at least 15
 calendar days in advance. Since fees are paid in advance, a reimbursement to the client
 will occur following the next quarters billing.
 RETIREMENT PLAN CONSULTING SERVICES
 Fees for services will be billed based a percentage of plan assets in the amount agreed
 upon between NWM and the plan sponsor in the written consulting services agreement.
 Fees generally have a maximum fee of 1.5% annually, and are negotiable between NWM
...

Item 7: Types of Clients
Description
 NWM generally provides investment advice to individuals, high net worth individuals,
 small businesses and corporations
 Client relationships vary in scope and length of service.
Third-Party Broker Dealer
 For an asset-based fee, NWM may contract directly with third-party broker-dealers and
 insurance carriers to maintain current client financial profiles and to provide ongoing
 account suitability and best interest analysis for client accounts held at those third-
 parties.