Addington Financial Group - Client Services

MANAGED ACCOUNT SERVICES

Managed Account Services provide clients with programs for investing their funds in response to their long-term needs. These programs typically begin with the development of a profile of the client and a review of market data. This results in the formation of an investment model.

The model serves to illustrate the interaction between a client's objectives and constraints and the risk-reward alternatives of the market. A review of the model with the client guides the development of a suitable investment policy. In turn, this investment policy serves as the blueprint for an investment plan.

The outgrowth of this process is a set of reasonable working guidelines for the management of an investment portfolio. Portfolios constructed by Ms. Addington include, but are not limited to stocks, bonds, mutual funds, and U.S. government securities. With the client's approval, Ms. Addington will then implement the plan in accordance with currently prevailing market conditions and the client's expectations.

Once the portfolio is constructed, Ms. Addington will provide continuous supervision and reoptimization of the portfolio, as changes in market conditions and the client's circumstances warrant. In addition, reports are prepared periodically for all accounts. These reports serve as the basis for monitoring the interim progress of the account.

Fees

Managed Account Services are billed as a percentage of assets under management. Typically these fees are payable quarterly in arrears. The client will be advised of the payment arrangement prior to implementation of advisory services.

In all cases this fee arrangement will be based on the following schedule:

First $100,000: 3.0% to 1.50%
$100,001 - $1,000,000: 2.5% to 1.00%
$1,000,001 - $2,000,000: 1.5% to 0.75%
Over $2,000,000: Negotiable

Ms. Addington offers comprehensive personal financial planning services. Such services may include risk management (life, health, disability and long-term health care insurance), tax, estate, investment, education, and retirement planning.

An associated person will first conduct an initial complimentary consultation, during which pertinent information about the client's financial circumstances and objectives is collected. Once such information has been reviewed and analyzed, a written financial plan - designed to achieve the clients' stated financial goals and objectives - will be produced and presented to the client.

If the client chooses to proceed, an advisory contract is prepared, reviewed with the client, and signed by both parties. It contains the services to be performed, the fees to be charged, an estimate of the total costs, and a schedule of payments.

In limited circumstances, the cost/time could potentially exceed the initial estimate. In such cases, the client shall be notified and may be requested to pay an additional fee.

Termination Of Contract