LFN Advisors Inc

Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
 DISCRETIONARY ASSET MANAGEMENT
 LFN charges an annualized investment advisory fee is 1.2% of the total assets under
 management for our discretionary asset management services.
 The annual fee is negotiable. Accounts within the same household may be combined for a
 reduced fee. Fees are billed quarterly in arrears based on the amount of assets managed as
 of the close of business on the last business day of each quarter. Lower fees for comparable
 services may be available from other sources. Clients may terminate their account within
 five (5) business days of signing the Investment Advisory Agreement with no obligation
 and without penalty. After the initial five (5) business days, the agreement may be
 terminated by LFN with thirty (30) days written notice to Client and by the Client at any
 time with written notice to LFN. For accounts opened or closed mid-billing period, fees will
 be prorated based on the days services are provided during the given period. All unpaid
 earned fees will be due to LFN. Client shall be given thirty (30) days prior written notice of
 any increase in fees. Any increase in fees will be acknowledged in writing by both parties
 before any increase in said fees occurs.
 LFN believes that its annual fee is reasonable in relation to: (1) services provided and (2)
 the fees charged by other investment advisers offering similar services/programs.
 However, our annual investment advisory fee may be higher than that charged by other
 investment advisers offering similar services/programs. In addition to our compensation,
 you may also incur charges imposed at the mutual fund level (e.g., advisory fees and other
 fund expenses).
 The investment advisory fees will be deducted from your account and paid directly to our
 firm by the qualified custodian(s) of your account. You will authorize the qualified
 custodian(s) of your account to deduct fees from your account and pay such fees directly
 to our firm.

You should review your account statements received from the qualified custodian(s) and
verify that appropriate investment advisory fees are being deducted. The qualified
custodian(s) will not verify the accuracy of the investment advisory fees deducted.
 Brokerage expenses and/or transaction fees charged by the qualified custodian are billed
directly to you by the qualified custodian. LFN does not receive any portion of such
commissions or fees from you or the qualified custodian. In addition, you will incur certain
charges imposed by third parties other than LFN in connection with investments made
through your account including, but not limited to, mutual fund sales loads, 12(b)-1 fees
and surrender charges, variable annuity fees and surrender charges, IRA and qualified
retirement plan fees, and charges imposed by the qualified custodian(s) of your account.
Management fees charged by LFN are separate and distinct from the fees and expenses
charged by investment company securities that may be recommended to you. A
description of these fees and expenses are available in each investment company security’s
prospectus.
SOLICITOR FEES
LFN has entered into a Solicitor Agreement with Gradient Investments Inc. (“GI”). GI is a
Registered Investment Advisor registered with the Securities and Exchange Commission
that provides investment portfolio advice and supervisory services.
GI offers an actively managed program of mutual fund and stock portfolios. The fees will be
disclosed to the client in the Investment Advisory Agreement and are negotiable. The
client’s fee for these services will be based on a percentage of assets under management as
follows:

                                    Fee Schedule per Account for:
                                    Strategic & Tactical Portfolios

            Assets Valuation                   Annual            Gradient       Solicitor
                                            Advisory Fee       Investments

            Up to $1,000,000                      1.75%               .85%        .90%

        $1,000,001 to $2,000,000                  1.60%               .75%        .85%

        $2,000,001 to $3,000,000                  1.15%               .55%        .60%

            Over $3,000,000                       .90%                .40%        .50%

                               Fee Schedule Per Account for:
                               Allocation Portfolios

            Assets Valuation               Annual Advisory          Gradient      Solicitor
                                                Fee               Investments

            Up to $1,000,000                      1.50%                .60%         .90%

        $1,000,001 to $2,000,000                  1.30%                .55%         .75%

        $2,000,001 to $3,000,000                    1.00%               .50%          .50%

             Over $3,000,000                        .80%                .40%          .40%

                               Fee Schedule per Account for: Preservation
                               Portfolios

            Assets Valuation                  Annual Fee             Gradient       Solicitor
                                                                   Investments

                All Assets                          1.00%               .40%          .60%

                               Fee Schedule per Account for: Legacy Tax
                               Advantage

            Assets Valuation                  Annual Fee        Gradient            Solicitor
                                                                Investments

                All Assets                          1.50%               .35%         1.15%

                               Fee Schedule for Non-Gradient Investments:
                                     Discretionary Managed Portfolios
            Assets Valuation                  Annual Fee
...

Item 7: Types of Clients
Description
 LFN generally provides investment advice to individuals, trusts, estates, or charitable
 organizations, corporations or business entities. Client relationships vary in scope and
 length of service.
Account Minimums
 LFN does not require a minimum to open an account.