Investment Advisory Group LLC

Item 5 - Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into a written
agreement with the Advisor.

Investment management fees will be calculated when the initial dollar amount is received and prorated through
the remainder of the initial quarter. Investment management fees will be billed the beginning of each calendar
quarter based on the closing market value of all assets in the Client’s account[s] at the end of the previous
quarter. Investment management fees are paid in advance of each calendar quarter. The market value of variable
annuity accounts will be included in the calculation of investment management fees for fee-based variable
annuity accounts and deducted from a designated brokerage account held at Fidelity. Fees and charges will be
listed on the Client’s account statements provided at least quarterly by Fidelity. All securities held in accounts
managed by Investment Advisory Group will be independently valued by the Custodian. Investment Advisory
Group will conduct periodic reviews of the Custodian’s valuations to ensure accurate billing.

No adjustments for fees will be made for additional deposits or partial withdrawals made between billing
quarters. Accounts that are closed between billing quarters will be refunded on a prorated basis within thirty (30)
days. Fees are based on the following schedule:

Investment Management Base Fee Schedule

                             Balanced & Equity Portfolios, Bond Fund Portfolios
                         Portfolio Value:             Per Year
                         $1.00 to $1 million          1.00% (100 basis points)
                         Over $1 million              1.00% to 0.75% (75 basis points) Based
                                                      on complexity and services provided

                                      Individual Fixed Income Portfolios
                         Portfolio Value                Per Year
                         All                            0.50% (50 basis points)

Fees for investment management services may be more or less than the cost of obtaining such services from
other providers. Fees are negotiable at the sole discretion of the Advisor. The Advisor aggregates all accounts in
a Client’s household to determine the fee breakpoints above.

Clients may incur certain fees or charges imposed by third parties, other than Investment Advisory Group, in
connection with investments made on behalf of the Client’s account[s]. The Client is responsible for all securities
execution and custody fees charged by the Custodian, if applicable. The Advisor’s recommended custodian does
not charge securities transaction fees for ETF and equity trades in Client accounts, provided that the Client’s
accounts meet the terms and conditions of the Custodian’s brokerage requirements. However, the Custodian

typically charges for mutual funds and other types of investments. The investment management fee charged by
Investment Advisory Group is separate and distinct from these custody and execution fees.

In addition, all fees paid to Investment Advisory Group for investment management services are separate and
distinct from the expenses charged by mutual funds and ETFs to their shareholders, if applicable. These fees and
expenses are described in each fund’s prospectus. These fees and expenses will generally be used to pay
management fees for the funds, other fund expenses, account administration (e.g., custody, brokerage and account
reporting), and a possible distribution fee. Additionally, as noted above, in certain circumstances the Advisor will
select share classes which do not have trading costs, but do have higher internal expenses ratio’s than institutional
share classes. Please refer to Item 12 – Brokerage Practices for additional information.

The Client or Investment Advisory Group may terminate one, or all, of the services provided under the
agreement at any time by written notice to the other party. Upon termination the unearned portion of all
prepaid fees will be promptly refunded to the Client.

The fee for stand-alone financial planning service[s] can be on an hourly rate, fixed fee and/or annual retainer. If
the fee is based on an hourly or fixed rate a portion of up to 50% of the financial planning fee may be payable at
the time the financial planning agreement is signed. The balance is due on completion of the service[s].

Financial planning fees will be calculated based upon the extent and complexity of the individual Client’s
personal circumstances. The fee for financial planning services can be on an hourly rate, fixed fee and/or annual
retainer. All fees are agreed upon prior to entering into a Fee Agreement with any Client.

Hourly fees range from $100 to $300 per hour. Fixed fees and annual retainer fees will typically range from
$500 to $10,000 with a minimum fee of $500. Fees are negotiable at the sole discretion of the Advisor. The
financial planning agreement may be terminated in writing within five (5) business days of executing the
agreement without penalty. The agreement may be terminated in writing after five (5) days and a pro rata refund
of prepaid fees will be issued to the account holder.

A financial planning report will be presented to the Client within ninety (90) days of entering the agreement,
provided that all information needed to prepare the written report has been promptly provided by the Client.

Collection of fees for retainer services will be collected when the retainer service work is initiated or payable
within three months of work completion. The Advisor will not collect advance fees of $1,200 or more for
services that will be completed six months or more in the future.

Use of Independent Managers
...

Item 7 - Types of Clients
Investment Advisory Group provides advisory services to individuals, high net worth individuals, trusts, estates
and charitable organizations. The amount of each type of Client is available on the Advisor's Form ADV Part
1A. These amounts may change over time and are updated at least annually by the Advisor. Investment
Advisory Group generally does not impose a minimum size for establishing a relationship, however certain
independent managers may impose a minimum fee.