Sound Income Strategies LLC

Item 5          Fees and Compensation

METHOD OF COMPENSATION AND FEE SCHEDULE
    ASSET MANAGEMENT
SIS will assess a management fee (the “Fee”) to provide discretionary portfolio management
services to clients. The Fee for these services will be based on an annual fee of up to 1.75% of Assets
Under Management. The Firm has a very limited select group of clients that, in addition to
providing asset management services, have special needs requiring additional attention and
oversight such as (i) special needs life planning through a family office model, (ii) individual
coaching and training, and (iii) offering special needs master classes. Due to this special attention,
SIS may charge up to a 2.0% annual Fee on Assets Under Management for this limited select group
of clients.
The Fee and payment frequency may be negotiable and Account(s) within the same household may
be combined for a reduced Fee. The Fee is billed monthly in arrears based on the value of the assets
under management at the end of each month unless negotiated to be billed quarterly. Clients may
terminate their account(s) within five business days of signing the IAA with no obligation. SIS will
be entitled to a pro rata fee for the days that service was provided in the final month. Client shall be
given thirty (30) days prior written notice of any increase in Fees, and client will acknowledge, in
writing, any agreement of increase in said Fees.
As mentioned above, the Firm may allocate a portion of a client’s portfolio to a Sub-Advisor to
provide investment services on behalf of the Firm. Clients will not be charged any additional Fee if
the Firm elects to allocate a portion of a client’s managed portfolio to a Sub-Advisor.
    SUB-ADVISOR TO UNAFFILIATED REGISTERED INVESTMENT ADVISORS
SIS offers discretionary asset management services to other Investment Advisors by making certain

                                      Sound Income Strategies, LLC

managed portfolios available for such other Investment Advisers to offer to their clients. The Fee
and billing frequency for such services is negotiated directly between SIS and the Investment
Advisor. SIS’s fees may be in addition to fees charged by their Investment Advisors or incorporated
in the fees they charge their clients. Clients that are referred to SIS are encouraged to discuss how
fees are determined with their Investment Advisor and who charges them. If the client’s agreement
with their Investment Advisor permits, SIS’ fees may be directly debited from the client’s
Account(s) that are introduced to SIS by their Investment Advisor.
    ERISA PLAN SERVICES
The annual Fees are based on the market value of the Plan Assets and will not exceed 1% of the
value. The Fee is charged in arrears, and the initial Fee will be based on the market value of the Plan
Assets as calculated by the custodian or record keeper of the Plan on the first business day of the
initial Fee period and will be due on the first business day of the Fee period. For services started
any time other than the first day of a billing cycle, the Fee will be prorated based on the number of
days remaining in the initial Fee period. Thereafter, the Fee will be based on the market value of the
Plan Assets on the last business day of the previous Fee period (without adjustments for
anticipated withdrawals by Plan participants or other anticipated or scheduled transfers or
distribution of assets) and will be due within ten (10) business days. If client’s IAA is terminated
prior to the end of the Fee period, SIS shall be entitled to a prorated Fee based on the number of
days during the Fee period services were provided. Any unearned Fees shall be refunded to the
Plan or Plan Sponsor.
The Fee SIS receives for the services it performs is described in detail in Schedule A of each ERISA
Plan Agreement in which the Firm provides investment advisory services on behalf of the Plan. The
Plan is obligated to pay the Fees; however, the Plan Sponsor may elect to pay the Fees. SIS does not
reasonably expect to receive any additional compensation, directly or indirectly, for providing
services to the Plan. If additional compensation is received, SIS will disclose this compensation, the
services rendered, and the payer of compensation. The Firm will offset the compensation against
the Fees agreed upon with the Plan Sponsor.
    3RD PARTY MANAGER FEES
For clients in which the Firm recommends a portion of their assets to be allocated and managed by
a 3rd Party Advisor, Firm will enter into an Agreement with the 3rd Party Advisor and receive a
portion of the advisory fees the client pays the 3rd Party Advisor.
As mentioned above in Item #4, if a client elects to allocate a portion of their assets to a 3rd Party
Advisor, those assets will not be included in the calculation of the client’s Fees.
The client should review the 3rd Party Advisor’s Brochure and investment agreement for further
information.
    SUB-ADVISORY SERVICES TO ETFS
As mentioned in Item 4 above, all SIS clients who invest in SIS ETFs acknowledge that the Asset
Management Fee they pay to SIS based on their assets under management is in addition to the fees
charged by the SIS ETFs to which SIS serves as sub-advisor (and which are incorporated into the
price of the security). Each client that invests in the SIS ETFs bears its pro rata share of the ETF’s
fees and expenses, which are in addition to the Asset Management Fees the client pays to SIS.
Please refer to each SIS ETFs’ prospectus which can be located on the Firm’s website -

                                      Sound Income Strategies, LLC

https://soundincomestrategies.com/etfs/ for additional information on the applicable expenses of
each SIS ETF. See Item 10 (Other Financial Industry Activities and Affiliations) and Item 11 (Code of
Ethics, Participation or Interest in Client Transactions and Personal Trading) below for additional
information about SIS’ service as a Sub-Advisor to the SIS ETFs.
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Item 7          Types of Clients

DESCRIPTION
SIS generally provides investment advice to individuals, other investment advisors, pension and
profit-sharing plans, trusts, estates, or charitable organizations, corporations, or business entities.
SIS also sub-advises a series of ETFs.
As mentioned in Item 4 above, SIS also provides investment advice along with specially tailored
services to clients with special needs.
Client relationships vary in scope and length of service.

ACCOUNT MINIMUMS
SIS requires a minimum $25,000 to open an account, which may be waived, based on the needs of
the client and the complexity of the situation.