Pace Financial Advisors Inc

ITEM 5 – FEES AND COMPENSATION

A      Our Fees. A description of the advisory fees we charge for our services is set forth in
       this Item 5. All fees are negotiable and individual clients may pay fees that are higher
       or lower (or otherwise materially different) than those described in this brochure.

PACE FINANCIAL ADVISORS, INC.                                 FORM ADV PART 2A – FIRM BROCHURE

       Fees for Wealth Management Services and Retirement Consulting Services: We generally
       charge annual asset-based fees for these services ranging from 0.50% - 2.00% per
       year of the market value of your account. Within these limitations, where you elect to
       have PFA implement an options-based investment strategy in your account, your
       account may be subject to an additional annual asset-based fee of up to 0.25% per
       year. The cash value of certain specific client accounts may be excluded from our
       advisory fee calculations, as we may agree in our written advisory agreement with
       you. We may amend our advisory fees from time-to-time, but only on thirty (30) days’
       advance written notice to you.

       Fees for these services are payable to us either quarterly or monthly in arrears or
       advance, as set forth in our written advisory agreement with the client. Where fees
       are charged in arrears, we will utilize the market value of your account as of the last
       trading day of the prior billing period to calculate our fees. Where fees are charged in
       advance, we will utilize the market value of your account as of the date of deposit of
       your assets to calculate our fees for the initial billing period. Thereafter we will utilize
       the market value of your account as of the last trading day of the prior billing period
       to calculate our fees.

       Our annual fees are charged either at a flat rate across the entire market value of
       your account or based on a customized tiered fee schedule and will be directly
       deducted periodically from your account at the custodian. Fees shall be pro-rated for
       any partial billing periods (based on the number of days services were provided). The
       specific fee arrangement applicable to your account will be set forth in a written
       advisory agreement you will enter with our firm.

       You may make additions or withdrawals from your account at any time; however, you
       should consider that some or all of the investments in your account may be intended
       as long-term investments and withdrawals of cash and premature liquidations of
       securities positions may impair the achievement of your investment objectives.
       Clients should further note that our fees for these services are further adjusted for
       any deposits to or withdrawals from your accounts based on the transaction date.

       Our asset-based fees are typically calculated as a percentage of the market value of
       your account (including cash balances, unless we otherwise agree) as such value is
       determined by your custodian. The custodian may use various pricing services such
       as Reuters and Standard & Poor’s to price securities held in your account. For actively
       traded securities, these services use the actual last reported sale price. For less
       actively traded securities such as bonds, these services will use the appropriate
       valuation methodology to determine the value of the security. In rare instances where
       a market-based price for a holding in your account is unavailable or difficult to
       determine, alternative fair valuation procedures may be followed. We will alert you

PACE FINANCIAL ADVISORS, INC.                              FORM ADV PART 2A – FIRM BROCHURE

       whenever this circumstance may arise. You should contact us with any questions or
       concerns about the valuation of any investments held in your account.

       Fees for Financial Planning and Consulting Services: When you engage PFA for stand-
       alone financial planning and consulting services, you will pay us an hourly fee at a
       maximum rate of up to $350 per hour. The specific hourly rate applicable to your
       engagement is negotiable and will be set forth in a written advisory agreement which
       is executed by the client prior to the commencement of our services. Fees for these
       services are billed in arrears with payment due either monthly, quarterly or in full
       upon our completion of the engagement. Fees are billed by means of traditional
       invoicing and are payable by cash, check, money order, credit card, or other form of
       payment deemed acceptable by PFA.

       Clients are never charged more than $1,200 six (6) or more months in advance for
       these services.

B      Direct Fee Deduction. Where you authorize us in writing to do so, we will directly
       deduct our advisory fees from the accounts you designate at the qualified custodian
       (e.g., Schwab) of your assets. Your authorization for direct fee deduction will be set
       forth in our written advisory agreement and/or on the forms required by the
       custodian of your accounts. We will liquidate money market shares or use cash
       balances from your account to pay our advisory fees when due, however, if money
       market shares or cash value are not available other investments may be liquidated.
       Please note that unexpected or premature liquidation of investments to pay our
       advisory fees may impair the performance of your account.

       Your custodian will independently send you an account statement to you typically
       monthly, but no less than quarterly, identifying the amount of funds and each security
       in your account at the end of the period and setting forth all transactions in your
       account during the period, including the amount of any advisory fees paid to us. The
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ITEM 7 – TYPES OF CLIENTS

We typically provide investment advice to individuals, high net worth individuals, trusts,
retirement plans, partnerships, corporations, and other business entities. Because each

PACE FINANCIAL ADVISORS, INC.                                 FORM ADV PART 2A – FIRM BROCHURE

client is unique, they must be willing to be involved in the planning and ongoing processes
of our management of their account. Such involvement does not have to be time consuming,
however we want our clients to remain informed and have a sense of security about their
investments.

We do not have any minimum fee or account opening or minimum balance requirements.