How We Get Paid

The annual fee schedule, based on a percentage of assets under management, is as follows:

                          Up to $1,000,000                                      1.00%

                          $1,000,000 to $10,000,000                       0.75%

                          Above $10,000,000                                   0.50%

The fees are assessed a flat rate based on the value of the account. For example, an account valued at $1,200,000 would be charged 0.75% annually.

The minimum portfolio value is generally set at $10,000. The minimum annual fee for any account is $100. Stone Bridge may, at its discretion, make exceptions to the foregoing or negotiate special fee arrangements where Stone Bridge deems it appropriate under the circumstances.

Portfolio management fees are generally payable quarterly, in advance. Fees are prorated for cash flows exceeding $10,000. If management begins after the start of a quarter, fees will be prorated accordingly. With client authorization and unless other arrangements are made, fees are normally debited directly from client account(s).

The investment advisory agreement may be terminated as of the close of any calendar month upon not less than 30 days prior written notice. In the event of termination, any paid but unearned fees will be promptly refunded to the client based on the number of days that the account was managed, and any fees due to Stone Bridge from the client will be invoiced or deducted from the client’s account prior to termination.

The annual fee will be charged as a percentage of assets under advisement within the Plan and may range up to 1.00%. Fees are individually negotiated at the time of the engagement and are based on factors that include, but are not limited to, the complexity and size of the Plan, anticipated future additional assets, and the specific services to be provided. The specific fee arrangement will be set forth in the Plan’s written agreement with Stone Bridge.

Fees paid to Stone Bridge are exclusive of all custodial and transaction costs paid to the client’s custodian, brokers, Managers or other third party consultants. Fees paid to Stone Bridge are also separate and distinct from the fees and expenses charged by separate account managers, mutual funds, ETFs (exchange traded funds) or other investment pools to their shareholders (generally including a management fee and fund expenses, as described in each fund’s prospectus or offering materials). The client should review all fees charged by funds, brokers, Stone Bridge and others to fully understand the total amount of fees paid by the client for investment and financial-related services.

When Stone Bridge provides stand-alone financial planning services to clients, these fees are negotiated with each client at the time of the engagement for such services and are normally a fixed fee. Among other things, fees are based on the scope and complexity of the client’s individual circumstances. Stone Bridge requests a deposit of 50% of the negotiated fee upon inception of the relationship. The client will receive an invoice upon completion of the engagement for the remaining portion of the fee. Stone Bridge reserves the right to waive financial planning fees for clients who utilize its other services.

When Stone Bridge provides general consulting services to clients, these services are generally separate from Stone Bridge’s financial planning and portfolio management services. Fees for general consulting are negotiated at the time of the engagement for such services, and are normally based on a fixed fee basis. Among other things, fees are based on the scope and complexity of the requested consulting services. Stone Bridge requests a deposit of 50% of the negotiated fee upon inception of the relationship. The client will receive an invoice upon completion of the engagement for the remaining portion of the consulting fee.

Stone Bridge may serve as an investment manager to accounts of other advisers and investment professionals (i.e., the primary advisers).  When Stone Bridge serves in this capacity, there are three components that comprise the accounts’ fee/pricing structure: the primary adviser’s management fee, Stone Bridge’s above-referenced portfolio management fees, and the account custodian’s fee for brokerage and custody services. The primary adviser’s fees are set forth in the agreement executed between the client and the primary adviser.

David Babb, Managing Member of Stone Bridge, is also licensed to sell insurance in Tennessee. In providing advisory services, David may recommend the purchase of products under circumstances where he would be entitled to receive a commission or other compensation in the transaction. In all such circumstances, however, the client will be notified of this payment in advance of the transaction, and under no circumstances will the client pay both a commission to David and a management fee to Stone Bridge on the same pool of assets.