IBN Advisory Services Inc

Item 5         Fees and Compensation

A. Description and Billing

Financial Planning
Financial planning fees can be hourly, fixed fee basis (which may be per project or ongoing),or
included with asset management services. Our hourly charge is between $125 and $350 per
hour. Fixed fees will be between $0 and $15,000. The fee range stated is a guide. Fees may be
higher or lower than this range, based on the nature of the engagement. Fees are negotiable, and
will depend on the anticipated complexity of your plan.

Asset Management

Generally, fees may vary from 0.50% to 2.00% per annum of the market value of a client’s assets
managed by IBNADV. The fee range stated is a guide. Fees are negotiable, and may be higher
or lower than this range, based on the nature of the account. Factors affecting fee percentages
include the size of the account, complexity of asset structures, and other factors. Any fee above
2% must be approved by compliance in advance and the reason for the excess fee most be
detailed in writing on part B of the Investment Management Agreement.

Clients charged a fee greater than 2%, above the standard advisory fee, may be able to find
comparable advisory services elsewhere for less. Charging more than 2% would violate the
antifraud provision of Section 206 of the Investment Advisors Act of 1940 unless that advisor
discloses to existing and potential clients that the fee is higher than normally charged in the
industry and that other investment advisors provide the same or similar services at lower rates.

Selection of Third-Party Managers

We may recommend that certain portions of a client's portfolio be managed by independent third-
party managers or recommend direct investment with independent third-party managers, typically
when those managers demonstrate knowledge and expertise in a particular investment strategy.
We consider private placement, or “hedge funds” as third-party managers.

We examine the experience, expertise, investment philosophies and past performance of
independent third-party investment managers in an attempt to determine if that manager has
demonstrated an ability to invest over a period of time and in different economic conditions. We
monitor the manager’s underlying holdings, strategies, concentration and leverage as part of our
overall periodic risk assessment. Additionally, as part of our due- diligence process, we survey the
manager’s compliance and business enterprise risks.

Based on a client’s individual circumstances and needs, we will determine which selected money
manager's portfolio management style is appropriate for that client. Factors considered in making
this determination include account size, risk tolerance and the investment philosophy of the
selected money manager. We encourage clients to review each third-party manager’s disclosure
document regarding the particular characteristics of any program and managers selected by us.

We will regularly and continuously monitor the performance of the selected money managers. If
we determine that a particular selected money manager is not providing sufficient management
services to the client, or are not managing the client's portfolio in a manner consistent with the
client's investment objectives, we will remove the client's assets from that selected money manager
and place the client's assets with another money manager at our discretion and without prior
consent from the client, unless the client is non-discretionary. Permission for non- discretionary
accounts will be obtained before placing the client's assets with another money manager.

IBNADV will obtain appropriate due diligence on all independent third-party managers, making
reasonable inquiries into their performance calculations, policies and procedures, code of ethics
policies and other operational and compliance matters to account for performance and risk
management. We examine the experience, expertise, investment philosophies and past
performance of third-party investment managers in an attempt to determine if that manager has
demonstrated an ability to invest over a period of time and in different economic conditions. We
monitor the manager’s underlying holdings, strategies, concentrations and leverage as part of our
overall periodic risk assessment. Additionally, as part of our due-diligence process, we survey the
manager’s compliance and business enterprise risks.
Clients may have their assets allocated to the strategies of their affiliate, “IBNBD” or “IBNFNSR”.
folios. The majority of IBNADV client assets are invested through Charles Schwab and Co. and
Axos Clearing, LLC, both of whom serve as custodian for the funds managed by IBNADV.
Individual investment adviser representatives may receive greater compensation for allocating

assets to “IBNBD” or IBNFNSR than to other managers. This conflict of interest is disclosed to
clients verbally and in this brochure. IBNADV also attempts to mitigate the conflict of interest by
requiring employees to acknowledge the firm’s Code of Ethics, their individual fiduciary duty to
the clients of IBNADV, which requires that employees put the interests of clients ahead of their
own.

The use of a third-party manager does not change the relationship between the IBNADV
professional and the client, in that such professional will still manage the overall client portfolio,
adding, subtracting and modifying the allocations to different strategies and managers.

B. Billing

Investment advisory fees will generally be debited directly from each client’s account. However,
clients do have the option to pay fees through an automated payment service. The advisory fee
is paid on either a quarterly or monthly basis, in arrears or in advance, depending on the chosen
custodian and method. Depending on the client’s needs and suitability, the appropriate custodian
and billing model will be recommended. Fees are calculated based on the average value,
...

Item 7         Types of Clients

A. Types of Clients
IBNADV generally provides advisory services to individuals, pension and profit-sharing plans,
trusts, estates, charitable organizations, corporations and other business entities.

B. Account Requirements
IBNADV recommends minimums based on selected strategy. IBNADV has strategies that have
no minimum however some strategies from third party managers can have minimums. Minimum
recommendations for each strategy can be viewed in our account application packet or Item 8
below.
IBNADV can waive the minimum amount requirements at their sole discretion.