Sage Financial Group Inc

Item 5           Fees and Compensation

   A. The client can determine whether to engage the Registrant to provide discretionary and/or
      non-discretionary investment advisory services on a fee basis.

         INVESTMENT ADVISORY SERVICES
         If a client determines to engage the Registrant to provide discretionary and/or non-
         discretionary investment advisory services on a fee basis, the Registrant’s annual
         investment advisory fee shall be based upon a percentage (%) of the market value and type
         of assets placed under the Registrant’s management (between 0.25% and 1.00%) as
         follows:

                          Market Value of Portfolio                          % of Assets
                          First $1,000,000                                   1.00%
                          $1,000,001 - $3,000,000                            0.75%
                          $3,000,001 - $5,000,000                            0.50%
                          $5,000,001 - $10,000,000                           0.30%
                          Over $10,000,000                                   0.25%

         Important Notes to Fee Schedule:
            • Minimum Assets Under Management: $1,000,000.
            • The minimum threshold for fees and/or Assets Under Management is at times
                adjusted based upon an estimation of the complexity and time anticipated for the
                services to be rendered.
            • This fee schedule became effective on March 25, 2013.
            • Clients who engaged the Registrant's services prior to March 25, 2013 were
                grandfathered under their pre-existing fee schedules as same are annexed to the
                Investment Advisory Agreement between the client and the Registrant.
            • Fee assessments will be pro-rated for partial periods in which client accounts are
                managed by the Registrant.

         Fee Exceptions – As noted above the Registrant generally requires a $1,000,000 minimum
         asset level and a $10,000 annual minimum fee for investment advisory services. The
         Registrant, in its sole discretion, is authorized to reduce its investment management fee
         and/or reduce or waive its minimum asset or fee requirement based upon certain criteria
         (i.e. anticipated future earning capacity, anticipated future additional assets, dollar amount
         of assets to be managed, related accounts, account composition, negotiations with client,
         etc.). In situations where a client’s account assets do not meet the minimum asset level, the
         Registrant may negotiate a flat fee or charge a higher annual fee percentage than disclosed
         in the standard fee schedule above. The fee schedule applied is incorporated into the client’s
         agreement and subject to the client’s pre-approval. When assets grow to meet the $1million
         asset minimum, the standard fee schedule will then apply unless the client has negotiated
         another arrangement.

         Fee Calculation – The advisory fee for all clients shall be payable quarterly, in advance,
         based upon the market value of the assets in the account on the last day of the previous
         quarter. For only the first quarterly billing cycle, the Registrant’s fee for the investment
         management services provided under an Investment Advisory Agreement shall be
         calculated and assessed monthly, rather than quarterly. Specifically, the fee shall be
         calculated in advance, based upon the market value of the assets under management in the

    account on the last day of the month directly before each of the three months included in
    the client’s first quarterly billing cycle. The first quarterly billing cycle begins the
    subsequent month the client’s assets are transferred to an account under the Registrant’s
    management. No annual minimum fee will be charged for the client’s first quarterly fee.

    The Registrant's annual investment advisory fee shall include investment advisory services,
    and, to the extent specifically requested by the client, family office services.

    FAMILY OFFICE SERVICES
    The Registrant provides clients with independent and objective insight into the key areas
    of their financial lives, without additional charges or fees. In many cases, the Registrant
    does not have the authority to effect changes with regard to life management
    recommendations. Clients are urged to consult with their estate attorney, accountant,
    insurance agent, and/or other advisers to effect changes to the documents or plans subject
    to recommendations. Clients should be prepared to compensate these other professionals
    for work performed on their behalf.

B. Clients may elect to have the Registrant’s advisory fees deducted from their custodial
   account. In such situations, both the Registrant's Investment Advisory Agreement and the
   custodial/clearing agreement authorize the custodian to debit the account for the amount of
   the Registrant's investment advisory fee and to directly remit that management fee to the
   Registrant in compliance with regulatory procedures. In the limited event that the
   Registrant bills the client directly, payment is due upon receipt of the Registrant’s invoice.
   The Registrant shall deduct fees and/or bill clients quarterly in advance, based upon the
   market value of the assets in the account on the last day of the previous quarter.

C. As discussed below, unless the client directs otherwise or an individual client’s
   circumstances require, the Registrant shall generally recommend that Charles Schwab and
   Co., Inc. (“Schwab”) and/or Fidelity Investments (“Fidelity”) serve as the broker-
   dealer/custodian for client investment management assets. Broker-dealers such as Schwab
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Item 7           Types of Clients

The Registrant’s clients generally include individuals, pension and profit-sharing plans, business
entities and trusts, as well as private funds. The Registrant generally requires a $1,000,000
minimum asset level and a $10,000 annual minimum fee for investment advisory services. The
Registrant, in its sole discretion, is authorized to reduce its investment management fee and/or
reduce or waive its minimum asset or fee requirement based upon certain criteria (i.e. anticipated
future earning capacity, anticipated future additional assets, dollar amount of assets to be managed,
related accounts, account composition, negotiations with client, etc.). When calculating advisory
fees, the Registrant will generally aggregate account values for each client relationship, which will
typically include accounts of both spouses and minor children and (at the exclusive discretion of
the Registrant) occasionally include adult children as well. Asset and fee minimums, if any, for the
Registrant’s private funds are specified in each fund’s offering documents. Assets in Registrant’s
private funds are excluded from investment management fee calculations.