World Capital Management (WMC) provides a range of financial services to individuals and businesses (hereafter referred to as the Client). The scope of services includes investment and risk management.  WCM works closely with clients to understand their financial goals and develop a plan that is tailored to their specific needs. This involves creating investment portfolios that are tailored to the client’s risk tolerance and financial objectives.

Objectives and Goals: WCM’s investment objective is to maximize returns using ETFs (exchange-traded funds) to meet clients’ expectations taking into consideration factors such as capital preservation, growth, income, or a specific benchmark.  WCM utilizes but is not limited to using, TQQQ (ProShares UltraPro QQQ) as an investment instrument for its portfolios. TQQQ is a leveraged exchange-traded fund (ETF) that seeks to provide three times the daily return of the Nasdaq-100 Index

Strategy, Risk Management & Disclosure: By signing this agreement Client acknowledges that due to the leveraged nature of TQQQ, the portfolio’s volatility is expected to be several times that of the Nasdaq-100 Index.  Client also agrees that the SQQQ (ProShares UltraPro Short QQQ) may be employed in taxable accounts to potentially offset losses to the portfolio while minimizing capital gains. It is further understood that the use of SQQQ may involve margin-carrying costs. WCM may periodically revert to an all-cash or neutral market position at which time the account will not be invested other than in an interest-bearing cash account.  WCM’s model periodically is either all-invested or in an all-cash position. This means overtime; portfolios may be as much as 100% totally invested or 100% totally in cash.  Historically, the model market positions have been equally divided. We estimate that this reduces market risk over the long term by about half.  WCM’s past performance is no guarantee of future results.

Authorization: Client gives the investment manager (WCM) authority to make investment decisions on behalf of the client, including the power to buy, sell, or trade securities, and use margin, in accordance with WCM’s investment strategy.

Fee Structure: The Client agrees to pay an annual fee of 2.52% (two-point five two percent) of the Client’s invested assets under management. The fee will be deducted automatically from the Client’s Schwab account monthly. The fee shall be based on the value of the assets under management as of the last business day of each calendar month. If the billing period is less than a calendar month, the fee will be prorated based on the value of the assets under management.  The billing amount shall also include cash positions when the account is liquidated based on the model’s “Sell” signals.  (See Risk Management and Disclosure.)

Reporting and Communication: At WCM, we believe in maintaining open and transparent communication with our clients. We understand the importance of keeping our clients informed about their investment portfolios and providing access to pertinent information. Therefore, we have implemented the following communication policy.

Quarterly Phone Meeting: As part of our commitment to client satisfaction, WCM will schedule at least one in-depth quarterly phone meeting between the client and our team. During this meeting, we will discuss the client’s portfolio performance, and any changes to WCM’s investment model, and address any questions or concerns the client may have. The purpose of this meeting is to ensure that the client is well informed and comfortable with their investment strategy. Client is welcome at any time to inquire about any matters related to their accounts.

Portfolio Access: The client has access to their portfolios through their Charles Schwab brokerage accounts in accordance with Schwab’s policies. This allows the client to view their portfolio holdings, performance, and any related documents at their convenience.

Market Expectations and Investment Model Changes: WCM understands the importance of staying up to date with market trends and expectations. We will keep the client informed about general market expectations through regular communication, such as email updates or newsletters. Additionally, if there are any changes to WCM’s investment model, we will promptly notify the client and provide a clear explanation of the rationale behind these adjustments.

Custody of Assets:  Client’s assets will be held by Charles Schwab & Co.  Client may elect to move their assets at any time.

Termination: Either party may terminate this Agreement by providing written notice to the other party 15 days in advance.  In the event of termination, the Advisor will calculate the final fee based on the pro-rata portion of the month during which the Agreement was in effect.

Governing Law: This Agreement shall be governed by and construed by the laws of California, Sonoma County, State of California, USA.  Disputes arising out of or in connection with this Agreement shall be subject to the exclusive jurisdiction of the courts in Sonoma, County.

Confidentiality and Privacy Statement: All client information shared with WCM will be treated as confidential. WCM will not disclose any personal or financial information to third parties without the client’s explicit consent unless required by law or regulatory obligations.

Privacy Notice: WCM is committed to protecting your privacy and ensuring the security of your personal information. We collect and use your information solely to provide investment advisory services, and we do not disclose your information to third parties without your consent, except as required by law. We have implemented security measures to safeguard your data and comply with applicable laws and regulations. You have the right to access and update your information, and we retain it only as long as necessary. By engaging our services, you acknowledge and agree to our privacy practices.

Dispute Resolution: In the event of any dispute or claim arising between the Client and WCM both parties agree to resolve the matter through arbitration and mediation services provided by the Financial Industry Regulatory Authority (FINRA).

Legal and Regulatory Compliance: WCM complies with all applicable laws, regulations, and industry standards regarding the collection, use, and protection of client information. We may disclose client information if required by court order, legal process, or governmental authority.