Innovative Advisory Group LLC

Item 5.            Fees and Compensation
5.1. Fees from Services
For all services and fees described here, similar services may be available elsewhere at a cost more
beneficial to the client. Neither IAG, IAR nor its representatives and employees can or will be able
to provide a list of sources where such cost-beneficial services may be available and are under no
obligation to research this information for clients or prospective clients. Except as provided in Item
5.2 IAG IAR Specific Compensation, Item 5.2 IAG Solicitor Compensation and Item 5.3 IAG
Solicitor Compensation, all fees are collected only and solely by IAG.
Billing and Invoicing Disclosure
IAG will send to the client a written invoice or statement, which includes, but not limited to, the
total fee, the formula (if any) used to calculate the fee, the fee calculation, the time period covered by
the fee, the assets under management on which the fee is based, the names of the custodian(s) or
broker-dealer where the client accounts are held. Such an invoice or statement shall be sent to the
client either with the request for payment or upon receipt of payment of fees. We urge clients to
compare this information with the fees listed in the account statement. For compensation received
by IAG through a solicitor arrangement, the invoice or statement shall be provided by the third-
party investment advisor firm.
Investment Advisory Services
Asset Management Accounts (AMA), Plan Participant Accounts (PPA) and One-Participant Plan
Accounts (OPA), fees are based on an annual fee, based on a percentage of assets under
management. There is no minimum balance required for the cumulative AMA, PPA and OPA and
fees are charged based on the percentage of assets under management. The fee is negotiable and is
payable quarterly in advance at the beginning of the quarter (typically first day of January, first day of
April, first day of July and first day of October) and is based on the total assets under management
at the end of the reporting period, which shall be the end of the previous quarter. Fees for the initial
quarter shall be calculated on a pro-rata basis and shall be collected prior to the end of the initial
quarter, following the receipt of assets within an AMA, PPA or OPA account. Upon termination,
the advance collected fees shall be refunded on a pro-rata basis. Any refund of fees upon
termination shall be directly to the client, and not to the client account from which it is withdrawn.
Pro-rata fees are calculated using the formula: Pro-rata Quarterly Fee = [(Quarterly Fee) / (Number
of Days in the Quarter)] * (Number of Days Assets are managed in the quarter), and whereas
Quarterly Fee is calculated as Quarterly Fee = [(Total Value of all Assets Under Management) *
(Agreed upon Client Fee)] / 4. All account fees are deducted from the AMA and OPA accounts
pursuant to client authorized custody agreement unless other arrangements have been made in
writing. For PPA only Clients, fees will be billable to client directly, unless PPA allows for
withdrawal of such fees and client authorizes IAG to collect such fees from PPA with appropriate
notification to Plan.

Currently IAG charges up to 2.00% of assets under management, but generally the range is between
1.00% and 2.00%

Fees will be negotiated by IAR, IAG and the client, and could be higher than disclosed here. IAG
reserves the right to reduce, discount or waive fees at its sole discretion. The percentage of assets
under management agreed to in the client agreement as the basis for the advisory fee will remain in

© 2011-2026 Innovative Advisory Group, LLC; All Rights Reserved                                 Page 16 of 40

effect until a new fee is negotiated and agreed to in writing by the client and IAG. If requested by
the client and specific to such client only, IAG reserves the right to charge the client a flat or hourly
fee in lieu of assets under management charge, this fee will be negotiated by the client, IAG and
IAR.

Account Fees and Transaction Fees: If applicable these fees may be incurred in the account. These
fees are charged by the custodian and broker and IAG does not receive any portion of these fees.
Fees will vary depending on the custodian and broker and will be outlined in the client agreement
from the specific custodian and broker.

Investment Advisory Services Expenses: For clients that request IAG to research, review and
analyze investments that are specific to their requirements, IAG may incur expenses associated with
such research and review and will be reimbursed at cost to IAG. These expenses may include the
cost of obtaining research material, travel costs associated with meeting with investment specialists
and other actual costs. IAG shall make a reasonable effort to notify the client in advance and receive
consent prior to incurring such expenses, provided such expenses are greater than $200.00, if known
in advance.

Other fees: Fees other than account fees and transaction fees may be incurred in relation to the
AMA, PPA or OPA. IAG does not impose these fees or receive any portion of these fees. These
fees may include, but are not limited to, the following: mutual fund or money market 12b-1 and sub
transfer agent fees, mutual fund or money market management fees and administrative expenses,
mutual fund transaction fees, certain deferred sales charges on previously placed mutual fund
transferred into the AMA, PPA or OPA, variable annuity expenses and other transaction charges
and service fees, valuation fees, hedge fund and managed future investment fees and other charges
required by law. Further information regarding charges and fees assessed may be found in the
provider's prospectus or in their client agreement.
Comprehensive Financial Planning Services
Comprehensive Financial Planning Services may be charged on a fixed fee or hourly arrangement
based upon the following fee schedule and as agreed upon between client and IAG by the IAR:
...

Item 7.            Types of Clients
The following are the types of clients that IAG provides its listed services for:
(1) Individuals
    This includes families and family units including children and family specific entities created for
    estate planning and management purposes. IAG maintains a strict anti-discrimination policy.

(2) Trusts
    This includes any form of Trust entity, whether revocable or irrevocable. Neither IAG nor IAG
    IAR’s shall take on the role of a Trustee or a co-Trustee but shall only provide services as agreed
    upon in the IAG client service agreement with the Trustee.

(3) Estates
    This shall include management of AMA, OPA and PPA and family specific entity accounts
    created for estate planning and management purposes, upon the death of the Individual as
    defined above.

(4) Corporations or Business Entities
    These shall include, but not limited to C-Corporations, S-Corporations, Limited Liability
    Companies, Limited Liability Partnerships, Partnerships, or any other form of entity as provided
    by law. In no case shall IAG take the role of a manager wherein there is an implied capacity to
    have custody of client assets.

(5) Employer Sponsored Plans
    These shall include the various qualified and non-qualified plans that are permitted by under the
    United States Internal Revenue Code and/or United States Employer Retirement Income
    Security Act, or equivalent thereof as permitted by law. IAG shall not take on the role of a
    Trustee of the plan or have custody of the plan assets.

Restrictions: While there are no minimum account size requirements by IAG for any prospective or
currently active Clients, IAG may place restrictions, at its own discretion, with respect to acceptance
of clients and/or management of client accounts, if during the client review process finds evidence
of fraudulent or prohibited transactions, which has not been initiated or recommended by IAG or
IAG IAR’s.

© 2011-2026 Innovative Advisory Group, LLC; All Rights Reserved                                Page 23 of 40

Item 8.            Method of Analysis, Investment Strategies and Risk of Loss
All investments, whether in securities or non-securities, is subject to risk. The degree of risk has
many factors, some of which include the inherent risk of the investment, the education and
investment background of the client as it pertains to the investment, the changes in rules and
regulations, environmental changes and changes in commerce and economics at micro and macro
level. Risk inherent to an investment may also change over time and does not always mean reduction
in risk. IAG in carrying out its research attempt to provide risk analysis not only at the investment
level, but also at a client specific portfolio level, based on all the information that is currently
available to IAG. IAG hereby discloses that all investments, securities, or non-securities is subject to
risk of loss that the client should be willing to bear.
8.1. Method of Analysis
IAG uses the following primary methods of analysis and does not only restrict itself to these
methods of analysis. No one analysis is deemed better than the other, or the sole decision-making
factor, and IAG may make use of one or more of these analysis methods at both the investment
asset level as well as the portfolio level. All the methods of analysis identified below whether used
independently or together, carries with them material risk that may cause changes in a client specific
portfolio position, or taxable events that may have to be borne by the clients.
Charting
Use of charting historical data for various asset classes, individual assets, and various other data
points, with data made available from various data sources, allows IAG to analyze patterns of
information as it pertains to investment assets.
Fundamental
Use of fundamental information of various investment assets, including but not limited to balance
sheets, public records, corporate disclosures, etc., allows IAG to analyze the details of the on-going
operations of the investment assets.
Technical
Using technical mathematical indicators and pattern matching indicators based on fundamental
mathematics allows IAG to analyze trend patterns associated with specific investment assets or
group of investment assets, including certain correlation patterns.
Cyclical
Macro-economic, socio-economic, investment asset classes follow various cyclical patterns of cash-
flow, investment, economic trends which have impact on investment assets as well as portfolio. IAG
analyzes these cyclical trends on a regular basis as it applies.
8.2. Investment Strategies
IAG uses the following general strategies which are fine-tuned to specific client portfolios. All
investment strategies have risk and costs associated with them, which vary based on investment
assets as well as client portfolios. Some of the material risks, including, but not limited to taxable
event, loss of investment and changes in client portfolio positions, would apply to all the investment
strategies.

© 2011-2026 Innovative Advisory Group, LLC; All Rights Reserved                                 Page 24 of 40

Long-term Investments
Typically, IAG aims to provide long-term investment recommendations which provide consistent
return on investment, either through growth, income or both. The change in strategy for the client
portfolio may depend on client requirements, and market volatility conditions. Long-term
investments are generally defined as investments generally held for 12 months or more.
Intermediate-term Investments
IAG incorporates intermediate-term investment recommendations typically during volatile market
conditions. Such intermediate-term investment recommendations are based on client requirements.
Intermediate-term investments are generally defined as investments generally held for less than 12
months, but greater than 30 days.
Short-term Investments
...