Compass Financial Services Inc

Fees and Compensation
Investment Management Fee
       We provide investment management services for an annual fee based upon a percentage of the
market value of the assets being managed. Our investment management fee does include transaction

executions costs, custodial fees, or other costs. On an annualized basis, our current fees for investment
management services will not exceed 1.75% of the assets under management. Our annual fee is prorated
and charged quarterly, in advance, based upon the market value of the assets being managed by us on
the last day of the previous quarter. The annual fee is negotiable and we may charge additional fixed fees
for planning/projects in certain circumstances.

Fees for Management during Partial Quarters of Service
        For the initial period of investment management services, the fees are calculated on a pro rata
basis. The Agreement will continue in effect until terminated by either party pursuant to the terms
of the Agreement. Our fees are prorated through the date of termination and any remaining balance is
charged or refunded to the client, as appropriate. If assets are deposited into or withdrawn from an
account after the inception of a quarter, the fee payable with respect to such assets will be adjusted or
prorated based on the number of days remaining in the quarter.

         Although the Adviser believes its management fee is competitive, clients may be able to find
similar services at higher or lower costs. Clients should also be aware of the fact that different clients are
charged different negotiated fees, thus some clients pay more or less than others for similar services.
Also, there can be no assurance that transactions effected through us result in the lowest per transaction
cost possible to a client.
         Prospective clients should be aware that in addition to the advisory fees, each mutual fund in
which a client's assets are invested also pays its own advisory fees and other internal expenses which
already have been deducted from the fund's reported performance. Depending on the fund, a client may
be able to invest directly in the shares issued by the fund with or without incurring any sales or third-party
management fees. Account maintenance fees are also deducted by the Custodian.
         In addition, there are tax effects pertaining to fund share redemptions, and other sales, made by
the Adviser on behalf of clients. Redemptions and sales are taxable events which may accelerate the
recognition of capital gains, and losses, and frequent redemptions and sales may result in short-term,
rather than long-term, capital gains and losses.
         Fees payable to the Adviser for Investment Management Services are, with the client’s prior
permission, automatically deducted from the client's account when due. The Adviser will liquidate money
market shares to pay the fee and, if money market shares or cash value are not available, other
investments will be liquidated. Authorization for the deduction of fees from the managed account is
contained in the Agreement. The client may terminate the authorization for automatic deduction at any
time by notifying the Adviser in writing.
         If we make a trade error that results in a loss to a client, we will make the client whole. If we make
a trade error that results in a gain to a client, LPL, and not us, keeps the gain. In that case, LPL will keep
the gain to defray the processing costs associated with errors.

Other Compensation
Commissions or Sales Charges for Recommendations of Securities
         Clients can engage certain persons associated with the firm (but not the firm itself) to render
securities brokerage services under a commission arrangement. Clients are under no obligation to engage
such persons and may choose brokers or agents not affiliated with this firm. Under this arrangement,
clients may implement securities transactions through certain of our Investment Adviser Representatives
in their respective individual capacities as registered representatives of LPL, an SEC registered broker-
dealer and member of FINRA. LPL may charge brokerage commissions to effect these securities
transactions and thereafter, a portion of these commissions may be paid by LPL to such representatives.
Prior to effecting any transactions clients are required to enter into a new account agreement with LPL.

The brokerage commissions charged by LPL may be higher or lower than those charged by other broker-
dealers. We do not charge an advisory fee on the same assets for which our Investment Adviser
Representatives receive commissions.
         First and foremost, our objective as a firm is to place nothing before the best interests of our
clients. However, a conflict of interest exists to the extent that advisory representatives can
recommend the purchase of securities where they receive commissions or other additional compensation
as a result. The receipt of commissions provides an incentive for advisory representatives to recommend
investment products based on compensation they will receive from selling such products, rather than on
the client’s needs. We do not allow advisors to earn a commission on products that are included within
our advisory accounts.
         We take the following steps to mitigate the possibility that the advisory representatives will
recommend an investment product based on commission rather than on the client’s needs: we
address the inherent conflicts as noted in the paragraph above, by disclosing them to you in this
Brochure and disclosure is made to the client at the time a brokerage account is opened through LPL,
identifying the nature of the transaction or relationship, the role to be played by LPL and the advisory
representative, individually, and any compensation (e.g. commissions) to be paid by the client.

Item 5 – Account Requirements and Types of Clients
        The Adviser usually does not require a minimum account size before accepting accounts for its
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