Deerfield Financial Advisors Inc

Item 5 – Fees and Compensation

In addition to the information provided in Item 4 – Advisory Business, this section provides details regarding
our fees and compensation arrangements.

Fees for Wealth Management Services
Clients receiving our Wealth Management Services will be charged an annual fee that combines a fixed-
fee component along with a fee based upon the percentage of the market value of the assets being
managed by our Firm (some clients are charged a fixed fee for the management portion of services). The
fixed fee and asset-based fee together are divided and charged quarterly, in advance. The fixed fee
component ranges typically between $2,500 and $15,000 annually depending on the client’s financial
planning needs, non-management account consulting needs and the Deerfield Financial Advisors
professional working with the client.

We will increase the annual fee for the first year of service by an amount commensurate with the state of
affairs and complexity presented at the onset of our relationship, indicating the amount of work necessary
to establish organization and planning in the first year of our relationship. This set-up fee will be an amount
up to, but not exceeding, the client’s ongoing annualized fixed fee, which as referenced in other sections,
typically range from $2,500 to $15,000 annually. The setup fee is divided and assessed quarterly in
advance but will be billed from your account separately from the Wealth Management Services fee.

Please see the following section, Fees for Investment Management Services, for a description of how we
determine the asset-based component of the annual fee. The following section also describes our methods
for collecting the quarterly fee.

The Wealth Management Services Agreement will continue in effect from the date fully executed and can
be terminated at any time upon receipt of written notice to terminate by either party to the other, which
written notice must be manually signed by the terminating party. Termination of services will not affect (a)
the validity of any action previously taken by Deerfield Financial Advisors under the agreement; (b) liabilities
or obligations of the parties from transactions initiated before termination of the agreement; or (c) the client’s
obligation to pay fees that have already been earned under the agreement. Upon termination of the
agreement, we will not have any continuing obligation to take any action. If the client terminates the
services, the balance (if any) of our unearned fees including the initial, one-year setup fee, shall be refunded
to the client and the balance (if any) of our earned fees, including the initial, one-year setup fee, shall be
charged to the client through the course of our client termination process.

Deerfield Financial Advisors, Inc.                                                              Disclosure Brochure

Fees for Investment Management Services
Clients are charged for our Investment Management Services based on a percentage of assets under
management using our blended fee schedule below. Total assets managed by our firm and subject to our
blended fee schedule shall be broken down into tiers. Each asset tier shall be assessed a fee percentage
in accordance with the blended fee schedule. The cumulative fee percentage for the account shall be a
blended rate based on the fee percentages applied to each asset tier.

Some clients are charged an annual fixed fee for Investment Management Services. In such situations,
the fixed fee is primarily determined based on their total assets managed by our firm utilizing the blended
fee schedule below. In other words, the total annual fixed fee will not exceed the maximum percentages
listed in the chart below. The difference between a fixed fee and percentage-based fee is that quarterly
installments for the fixed fee do not adjust based on fluctuations in account values whereas percentage-
based fee arrangements are determined based on account values at end of the prior quarter and therefore
fluctuate throughout the year. The following is our standard fee schedule, based on the amount of client
assets managed by our Firm.

Total Client Assets                  Annual Fee

First $0 – $2,000,000                0.75% of assets
Next $2,000,001 – $4,000,000         0.65% of assets
Next $4,000,001 – $6,000,000         0.55% of assets
Next $6,000,001 & over               0.45% of assets

It should be noted that our standard fee schedules have evolved over the years and some clients that have
been with us for a significant number of years are being charged a fee less than the standard fee schedules
we’ve described in this section. Fees can be negotiated using factors such as the complexity of investment
options, the total dollar value of the accounts under management, and the investment advisor
representative providing services.

There are occasions when individuals become clients early in their careers, while they are accumulating
assets and when financial planning is integral to the direction of their future. Deerfield will accept clients in
these circumstances, in anticipation of a long relationship with shared values regarding the importance of
planning and our investment management philosophy. These clients will receive our services for an annual
fixed fee ranging between $4,000 and $8,000. Our relationship and service can be revisited
regularly. Some of these clients have opted to pay their fees by establishing a direct ACH bank-payment
through the AdvicePay application. In these cases, we will divide the annual fee into 12 monthly payments.
Clients will receive an invoice every time the monthly fee is transferred from their bank account.

Percentage based fees are billed quarterly in advance based on the market value of the account at the end
of the previous quarter. The quarterly fee shall be adjusted each quarter to reflect changes in the market
...

Item 7 – Types of Clients

Deerfield Financial Advisors, Inc. generally provides investment advice to the following types of clients:

     •    Individuals
     •    Pension and profit sharing plans
     •    Trusts, estates or charitable organizations
     •    Corporations or business entities other than those listed above

Deerfield Financial Advisors, Inc.                                                           Disclosure Brochure

Minimum Investment Amounts Not Required
There are no minimum investment amounts for establishing an account managed by Deerfield Financial
Advisors, however, there will be discussion during the initial complementary meeting to determine if the
client embraces Deerfield’s investment philosophy and if there is alignment between the services needed
and Deerfield’s applicable fees. The Schwab Institutional Intelligent Portfolios™ program is offered to
clients that have assets around or less than $600,000 under management with our firm, but we won’t
automatically suggest this program to all clients with assets less than $600,000. All clients are required to
execute an agreement for services prior to commencing any work.