IEG fees are generally two-stage comprising a fixed fee on retention and a percentage based success fee dependent on a transaction based outcome for the client. Three types of fee base are identified: (i) distressed businesses, (ii) emerging intellectual property, and (iii) consulting outside of the scope of the original agency basis of retention.

FIXED FEE of $55,000 fully earned and payable at retention.

SUCCESS FEE of 3% of the Gross Transaction Proceeds due and payable at Closing, in addition to the Fixed Fee.

MINIMUM FEE of $160,000 combined which therefore applies in all situations where the Gross Transaction Priceeds are at or below $3,500,000.

ALTERNATE FEE where IEG agrees to a Fixed Fee of $45,000 the Success Fee becomes 4%; $35,000 is then 5%; $25,000 is then 6%; $15,000 is then 7% across the board. These changes do not affect the Minimum Fee which is still $160,000.

EXPENSES to be reimbursed to a maximum of $9,200 per agency agreement. 

SUCCESS FEE of a minimum of 12% up to a maximum of 50% of the Gross Transaction Proceeds. The percentage is dependent on the degree of readiness of the IP for market launch and the complexity and size of the marketplace. For example, IP which requires FDA approval of a Class III Medical Device is not a transaction likely to be completed within even twelve months yet IEG will have expended time and expense pending an uncertain outcome. There is no Fixed Fee and no Expenses reimbursement to IEG in this agency relationship. The Success Fee is at a higher percentage because there is a much higher risk to IEG of an incomplete agency because of outside forces not in the control of IEG unlike distressed company situations.

IEG will certainly undertake some consulting for clients, including other M&AIs, but on an hourly basis for services clearly outside of an existing agency agreement. IEG bills those services at an hourly rate of $330 per hour with a minimum 5 hour calendar work day.