Independent Wealth Advisors LLC

Item 5: Fees and Compensation

A. Fee Schedule

Portfolio Management Fees

         Total Assets Under Management                    Annual Fee

         $5,000 - AND UP                                  Up to 1.25%

Portfolio management fees are withdrawn directly from the client’s accounts with client’s
written authorization on a quarterly basis. Fees are paid in advance.

For the initial fee deduction, LPL will deduct the IWA’s fee at the beginning of the quarter
following the establishment of the Account and will include a prorated fee for the initial

quarter in addition to IWA’s quarterly fee for the upcoming quarter.

Subsequent fee deductions will be made at the beginning of each quarter based on the
value of the Account assets as of the close of business on the last business day of the
preceding quarter. Additional deposits and withdrawals will be added or subtracted from
the assets, which may lead to an adjustment of the IWA’s fee.

Fees are paid in advance. These fees are generally negotiable and the final fee schedule
will be memorialized in the client’s advisory agreement. Clients may terminate the
agreement without penalty, for full refund of IWA’s fees, within five business days of

signing the Investment Advisory Contract. Thereafter, clients may terminate the
Investment Advisory Contract immediately upon written notice.

Upon termination, for any unearned asset-based fees paid in advance, the fee refunded
will be equal to the balance of the fees collected in advance minus the daily rate* times the
number of days elapsed in the billing period up to and including the day of termination.
(*The daily rate is calculated by dividing the annual asset-based fee rate by 365.)

Financial Planning Fees

Fixed Fees

The negotiated fixed rate for creating client financial plans is between $500 and $20,000.

Clients may terminate the agreement without penalty, for full refund of IWA’s fees, within
five business days of signing the Financial Planning Agreement. Thereafter, clients may
terminate the Financial Planning Agreement generally upon written notice.

B. Payment of Fees

Payment of Portfolio Management Fees

Portfolio management fees are withdrawn directly from the client’s accounts with client’s
written authorization on a quarterly basis. Fees are paid in advance.

Payment of Financial Planning Fees

Financial planning fees are paid via check, wire, or AdvicePay.

Fixed financial planning fees are paid 0-100% in advance, with the remainder due upon
presentation of the plan or can be paid monthly as negotiated on a case-by-case basis. 12-
month and 18-month agreements are available to clients.

C. Client Responsibility For Third Party Fees

Clients that are not in IWA’s wrap program are responsible for the payment of all third
party fees (i.e. custodian fees, brokerage fees, mutual fund fees, transaction fees, etc.).
Those fees are separate and distinct from the fees and expenses charged by IWA. Please
see Item 12 of this brochure regarding broker-dealer/custodian.

For clients in IWA’s wrap program, IWA will wrap third party fees (i.e., custodian fees,
brokerage fees, mutual fund fees, transaction fees, etc.) for wrap fee portfolio management
accounts. IWA will charge clients one fee, and pay all transaction fees using the fee
collected from the client. Accounts participating in the wrap fee program are not charged
higher advisory fees based on trading activity, but clients should be aware that IWA has

an incentive to limit trading activities for those accounts since the firm absorbs those
transaction costs.

D. Prepayment of Fees

IWA collects fees in advance. Refunds for fees paid in advance but not yet earned will be
refunded on a prorated basis and returned within fourteen days to the client via check, or
return deposit back into the client’s account.

For all asset-based fees paid in advance, the fee refunded will be equal to the balance of
the fees collected in advance minus the daily rate* times the number of days elapsed in
the billing period up to and including the day of termination. (*The daily rate is calculated
by dividing the annual asset-based fee rate by 365.)

Fixed fees that are collected in advance will be refunded based on the prorated amount of
work completed at the point of termination.

E. Outside Compensation For the Sale of Securities to Clients

David Joseph Hellinger, Jakub Martin Kreuter, and Ethan Sloan Carr are registered
representatives of a broker-dealer. David Joseph Hellinger and Jakub Martin Kreuter are
also insurance agents. In these roles, they accept compensation for the sale of investment
products to IWA clients.

1. This is a Conflict of Interest

   Supervised persons may accept compensation for the sale of investment products,
   including asset based sales charges or service fees from the sale of mutual funds to
   IWA's clients. This presents a conflict of interest and gives the supervised person an
   incentive to recommend products based on the compensation received rather than on
   the client’s needs. When recommending the sale of investment products for which the
   supervised persons receives compensation, IWA will document the conflict of interest
   in the client file and inform the client of the conflict of interest.

2. Clients Have the Option to Purchase Recommended Products From
Other Brokers

   Clients always have the option to purchase IWA recommended products through
   other brokers or agents that are not affiliated with IWA.

3. Commissions are not IWA's primary source of compensation for
advisory services

   Commissions are not IWA’s primary source of compensation for advisory services.

       4. Advisory Fees in Addition to Commissions or Markups

           Advisory fees that are charged to clients are not reduced to offset the commissions or
           markups on investment products recommended to clients.

Item 7: Types of Clients

IWA generally provides advisory services to the following types of clients:

       ❖       Individuals
       ❖       High-Net-Worth Individuals

There is an account minimum of $5,000, which may be waived by IWA in its discretion.