Worth Financial Group Inc

Item 5 – Fees and Compensation
Worth charges fees on an annualized basis. The fee percentage is negotiated between the
Investment Advisor Representative and the client. Fees will be calculated, in arrears, as a
percentage of the assets under management (as reported by the Custodian) on the last
business day of each month. Advisory fees are deducted from the client account at the
beginning of the following month. (For more information, see Item 15.) Clients may

terminate the investment advisory contract at any time with thirty days written notice.
Additionally, the client may terminate the Advisory Agreement within five days of signing
the agreement.
   •   Minimum account value: $25,000 (may be aggregated among common ownership
       accounts & Worth may waive the account minimum or require a higher or lower
       minimum for an account, in its sole discretion). Worth may waive the minimum
       requirement for certain advisory accounts held with Schwab.
   •   Minimum fee: $500-$600/year; $41.67-$50/month;
   •   Ticket charge: $25/transaction imposed by National Financial Services
   •   Worth Investment Advisor Representatives may charge a fixed annual rate not to
       exceed 2.0% (or 0.40% to 1.00%, but not to exceed 2%)
   •   Worth advisory fees do not include other fees associated with the service of the
       account such as wire fees, electronic fund transfers, returned check fees, overnight
       fees, custodial fees, exchange fees or other charges required by the custodial firm or
       by law
   •   Fees are negotiable. Fees other than stated above must be approved, in writing, by a
       Worth principal.
   •   Worth, in its sole discretion, may waive its minimum fee and/or charge a lesser
       investment advisory fee based upon certain criteria (e.g., historical relationship,
       type of assets, anticipated future earning capacity, anticipated future additional
       assets, dollar amounts of assets to be managed, related accounts, account
       composition, negotiations with clients, etc.).
   •   Mutual funds and exchange traded funds also charge internal management fees,
       which are disclosed in a fund’s prospectus.
   •   If sufficient cash is not available in the account to pay the fees when due, Worth will
       liquidate securities selected by Worth without prior notice to the client. If mutual
       funds are liquidated, the client may be charged an early redemption fee or a fee to
       discourage short-term trading of fund shares. If the liquidated securities have
       declined in value, the client will realize a loss and forego the opportunity for future
       appreciation of the securities.
   •   Clients can generally purchase the same or similar investment products or services
       through other firms that are not affiliated with us. However, clients who obtain
       investment products or services through other firms will not receive the benefit of
       the services we provide in determining which investment products or services may
       be appropriate in view of the client’s financial situation, investment objectives, risk
       tolerance, and liquidity needs. Our fees may be higher (or lower) than fees charged
       by other advisers or institutions for similar services with better (or worse)
       performance or lower (or higher) risk. Clients should consider carefully all of the
       direct and indirect fees and expenses of our services and the investment products

       we recommend to fully understand the total costs and assess the value of our
       services.
Worth reserves the right to terminate any Registered Investment Advisory Agreement
where a client has willfully concealed or has refused to provide pertinent information
about financial situations when necessary and appropriate, in Worth’s judgment, to
providing proper financial advice. Worth reserves the right to deduct the full amount of the
advisory fees earned and accrued upon the termination of the advisory relationship or the
initiation by the customer to transfer the account, whichever occurs first or Worth filing for
protection under applicable bankruptcy laws and/or the issuance of a protective decree
under the Securities Investor Protection Act.
Item 12 further describes the factors that Worth considers in selecting or recommending
broker-dealers for client transactions and determining the reasonableness.

Item 7 – Types of Clients
Worth provides portfolio management services to individuals and high net worth
individuals. Worth requires a minimum account value (aggregated) of $25,000. Worth may
waive the account minimum or require a higher or lower minimum for an account, in its
sole discretion. If the aggregate value of the client’s account falls below the account
minimum, Worth has the right to require deposit of additional amounts to bring the value
of the account up to the account minimum or close and liquidate the account and send the
proceeds to the client in accordance with the client’s written delivery instructions.