Innovative Advisory Partners LLC

Item 5 – Fees and Compensation
Investment Management Services
Investment advisory fees are paid quarterly in advance according to the terms of the investment advisory
agreement. Fees are based on the market value of assets under management at the end of the prior quarter as
agreed in the advisory agreement.

Investment advisory fees are negotiable based on the scope and complexity of the services, the amount of time and
expertise required but generally do not exceed the below grid.

                                   Assets Under Management – Tiered Fee Schedule
          First      $100,000      $250,000      $500,000       $750,000      $1,000,000      $2,000,000      $5,000,000
                                                                                                                             $25,000,000+
       $99,999.99   $249,999.99   $499,999.99   $749,999.99    $999,999.99   $1,999,999.99   $4,999,999.99   $24,999.999.9
            Up to 2.0%            Up to 1.9%                                         Up to 1.8%

The investment advisory fee in the first period of service is pro-rated from the inception date of the account[s] to
the end of the first quarter.

   •    The firm will not have the authority or responsibility to value portfolio securities.

 Disclosure Brochure

   •   If a client terminates an engagement before the billing period, a pro-rated fee calculation will be applied
       before releasing the funds.

   •   Asset management fees are exclusive of and in addition to, brokerage fees, transaction fees, and other
       related costs and expenses.

Sub-Advisor
When clients are referred to a third-party sub-advisor, Prosperitus will receive a portion of the fee charged by the
sub-advisor. Therefore, we have a conflict of interest because we only recommend sub-advisors that agree to
compensate our firm by paying us a portion of the fees billed to your account managed by the sub-advisor.

Mutual Fund Share Class Disclosures
Certain mutual fund share classes charge a 12b-1 fee that generally amounts to an additional .25% expense ratio or
more. The purpose of 12b-1 fees, as approved by the SEC, are to cover marketing expenses and shareholder
services such as support services and “other expenses” such as legal, accounting and the administrative functions
of the custodian. When selecting a mutual fund, Investment Advisor Representatives have a fiduciary duty to
choose the share class that helps manage the overall fee structure of the account. The entire fee structure includes
such fees as the asset management fee, the expense ratio and ticket charges.

   •   Mutual funds typically offer multiple share classes, including lower-cost share classes that do not charge
       12b-1 fees and are therefore usually less expensive.

   •   Investment Advisor Representatives will consider investing client funds in 12b-1 fee-paying share
       classes even when a lower-cost share class is available as appropriate to account for the overall fee
       structure and tax considerations as well as attributes of a fund not available for lesser fees.

Fee Billing
Investment Management Services
Investment advisory fees are calculated by the firm and deducted from the Client’s account[s] at the Custodian.
The firm shall send an invoice to the Custodian indicating the amount of the fees to be deducted from the Client’s
account[s] at the respective quarter end date. To determine the amount due, the account balance is multiplied by
the weighted annual rate and then multiplied again by the quotient of calendar days in the billing date range
over total calendar days in the current year. Clients will be provided with a statement, at least quarterly, from the
Custodian reflecting the deduction of the investment advisory fee. Clients should verify the accuracy of fees.

Financial Planning Services
Prosperitus Wealth Advisors can charge on an hourly or flat fee basis for financial planning services. The total
estimated fee, as well as the ultimate fee charged, is based on the scope and complexity of services.

   •   The fee for financial plans that are based on an hourly rate is calculated by a multiple of the anticipated
       number of hours required and an hourly rate that generally ranges from $200 to $300 per hour.

 Disclosure Brochure

   •    The fee for financial plans that are based on a flat rate generally range from $1,500 to $30,000.

Hourly Consulting Services
Prosperitus Wealth Advisors can charge an hourly fee ranging from $200 to $300 to provide hourly consulting
when a more comprehensive financial plan is not requested.

Other Fees and Expenses
Clients can incur fees or charges imposed by third parties, other than the firm, in connection with investments
made on behalf of the Client’s account[s]. The Client is responsible for all custody and securities execution fees
charged by the broker/dealer. The fees and costs not included in the wrap fee include:

    •   Commissions and other fees charged by other broker/dealers other than the custodian for transactions
    •   Step-In, or Trade Away Services.
    •   Fees charged by mutual fund companies, closed-end funds, electronically traded funds, and other
        collective investment vehicles, including, but not limited to, sales loads and/or charges and short-term
        redemption fees.
    •   Markups and markdowns, bid-ask spreads, and selling concessions in connection with transactions the
        custodian executes as principal. Principal transactions contrast with transactions in which the custodian
        acts as your agent in effecting trades. Markups and markdowns and bid-ask spreads are not separate
        fees, but are reflected in the net price at which a trade order is executed.
    •   Costs imposed by third parties, such as transfer taxes, odd-lot differentials, certificate delivery fees,
        reorganization fees, and any other fees required by law. The custodian may also charge for additional
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Item 7 – Types of Clients
Prosperitus Wealth Advisors offers investment advisory services primarily to mass-affluent individuals and
small business owners with an income range of $100,000 to $500,000. The number of each type of Client is
provided on Form ADV Part 1A. These numbers change over time and are updated at least annually.