Pacific Capital Associates Inc

Item 5: Fees & Compensation

Compensation for Our Advisory Services

Comprehensive Portfolio Management:

The maximum annual fee charged for this service will not exceed 1.00%. Fees to be assessed will be
outlined in the advisory agreement to be signed by the Client. Annualized fees are billed on a pro-
rata basis quarterly in advance based on the value of the account(s) on the last day of the previous
quarter. Fees are negotiable and will be deducted from client account(s). Legacy clients of our firm
may be assessed fees quarterly in arrears based on the value of the account(s) on the last day of the
quarter. Adjustments will be made for individual deposits or withdrawals of $10,000 or more during
the quarter. Unless otherwise noted in writing, our firm bills on cash. In rare cases, our firm will
agree to directly invoice. As part of this process, Clients understand the following:

    a) The client’s independent custodian sends statements at least quarterly showing the market
       values for each security included in the Assets and all account disbursements, including the
       amount of the advisory fees paid to our firm;

ADV Part 2A – Firm Brochure                    Page 6                             Pacific Capital Associates, Inc.

    b) Clients will provide authorization permitting our firm to be directly paid by these terms. Our
       firm will send an invoice directly to the custodian; and
    c) If our firm sends a copy of our invoice to the client, legend urging the comparison of
       information provided in our statement with those from the qualified custodian will be
       included.

The management fee charged to clients by our firm will not exceed 1%. If we, in agreement with the
client, select a third-party manager, that manager will charge their own additional management fee
which will vary by manager and the strategy. The third-party management fee will not exceed 1.50%.
The total combined fee will not exceed 2.50%. Our firm will debit fees for our service only. The third-
party money managers we recommend will not directly charge you a higher fee than they would have
charged without us introducing you to them. Third party money managers establish and maintain
their own separate billing processes that will govern the deduction of their fee. They will directly bill
you for their service and will describe how this works in their Form ADV and/or agreement with you.

Financial Planning & Consulting:

Our firm charges on an hourly or flat fee basis for financial planning and consulting services. The total
estimated fee, as well as the ultimate fee charged, is based on the scope and complexity of our
engagement with the client. The maximum hourly fee to be charged will not exceed $350. Flat fees
will not exceed $10,000. The fee-paying arrangements will be determined on a case-by-case basis
and will be detailed in the signed consulting agreement. Our firm will not require a retainer exceeding
$1,200 when services cannot be rendered within 6 months.

Retirement Plan Consulting:

Our Retirement Plan Consulting services are billed a fee based on the percentage of Plan assets under
management. The total estimated fee, as well as the ultimate fee charged, is based on the scope and
complexity of our engagement with the client. The maximum annual fee will not exceed 1.00%. The
fee-paying arrangements for Retirement Plan Consulting service will be determined on a case-by-
case basis and will be detailed in the signed consulting agreement. Clients will be invoiced directly
for the fees.

Account Monitoring:

The maximum annual fee charged for this service will not exceed 0.25%. Fees to be assessed will be
outlined in the advisory agreement to be signed by the Client. Annualized fees are billed on a pro-
rata basis quarterly in advance based on the value of the account(s) on the last day of the previous
quarter. Fees are negotiable and will be deducted from client account(s). Adjustments will be made
for deposits and withdrawals of $10,000 or more during the quarter. In rare cases, our firm will agree
to directly invoice. As part of this process, Clients understand the following:

    a) The client’s independent custodian sends statements at least quarterly showing the market
       values for each security included in the Assets and all account disbursements, including the
       amount of the advisory fees paid to our firm;
    b) Clients will provide authorization permitting our firm to be directly paid by these terms. Our
       firm will send an invoice directly to the custodian; and
    c) If our firm sends a copy of our invoice to the client, legend urging the comparison of
       information provided in our statement with those from the qualified custodian will be
       included.

ADV Part 2A – Firm Brochure                    Page 7                             Pacific Capital Associates, Inc.

Other Types of Fees & Expenses

Clients will incur transaction charges for trades executed by their chosen custodian. These
transaction fees are separate from our firm’s advisory fees and will be disclosed by the chosen
custodian. Charles Schwab & Co., Inc. (“Schwab”) does not charge transaction fees for U.S. listed
equities and exchange traded funds.

Clients may also pay holdings charges imposed by the chosen custodian for certain investments,
charges imposed directly by a mutual fund, index fund, or exchange traded fund, which shall be
disclosed in the fund’s prospectus (i.e., fund management fees, initial or deferred sales charges,
mutual fund sales loads, 12b-1 fees, surrender charges, variable annuity fees, IRA and qualified
retirement plan fees, and other fund expenses), mark-ups and mark-downs, spreads paid to market
makers, fees for trades executed away from custodian, wire transfer fees and other fees and taxes on
brokerage accounts and securities transactions. Our firm does not receive a portion of these fees.

Termination & Refunds
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Item 7: Types of Clients & Account Requirements

Our firm has the following types of clients:
   • Individuals and High Net Worth Individuals;
   • Trusts, Estates or Charitable Organizations;
   • Pension and Profit Sharing Plans;
   • Corporations, Limited Liability Companies and/or Other Business Types.

There is an account minimum, $200,000, which may be waived by the investment advisor in special
situations.