Pacific Financial Strategies Inc

Item 5 – Fees and Compensation
We are required to describe our brokerage, custody, fees, and fund expenses so you
will know how much you are charged and by whom for our advisory services provided to
you. Our fees are generally negotiable.

(i) Asset Management:

        Assets under Management                      Annual Advisory Fee
   h) $0.00 -$249,999.99                                      1.45%
   i)   $250,000.00 - $499,999.99                             1.25%
   j)   $500,000.00 - $749,999.99                             1.00%
   k) $750,000.00 - $999,999.99                               .90%
   l)   $1,000,000.00- $1,499,999.99                           .85%
   m) $1,500,000.00 -$1,999,999.99                            .75%
   n) $2,000,000.00 - and over                                .60%

PFS may negotiate these fees individually with clients at any time.

*Our firm’s fees are billed on a pro-rata annualized basis quarterly in advance based on
the value of your account on time-weighted daily average of the previous quarter.
Fees will generally be automatically deducted from your managed account*. As part of
this process, you understand and acknowledge the following:

   a) Your independent custodian sends statements at least quarterly to you showing
      all disbursements for your account, including the amount of the advisory fees
      paid to us.

   b) You provide authorization permitting us to be directly paid by these terms.

   c) If we send a copy of our invoice to you, our invoice includes a legend as required
      by paragraph (a)(2) of Rule 206(4)-2 under the Investment Advisers Act of
      1940.**
*In rare cases, we will agree to directly bill clients.
**The legend urges the client to compare information provided in their statements with
those from the qualified custodian in account opening notices and subsequent
statements sent to the client for whom the advisor opens custodial accounts with the
qualified custodian.

                                                                                    4 | P age

(i) Financial Planning and Consultations:
We charge on an hourly or flat fee basis for financial planning and consultation services.
The total estimated fee, as well as the ultimate fee that we charge you, is based on the
scope and complexity of our engagement with you. Our hourly fees are $200 for
financial advisors, $100 per hour for para-planners and $75 for administrative time. Flat
fees generally range from $1,000 to $10,000.
We require a retainer of fifty percent (50%) of the ultimate financial planning or
consultation fee with the remainder of the fee directly billed to you and due to us within
thirty (30) days of your financial plan being delivered or consultation rendered to you. In
all cases, we will not require a retainer exceeding $1,200 when services cannot be
rendered within 6 (six) months.
(ii) 401(k)/Pension Consulting:
       Assets under Management                       Annual Advisory Fee
               Any Assets                                 Maximum 1%
*Our firm’s fees are billed on a pro-rata annualized basis quarterly in advance based on
the value of your account on time-weighted daily average of the previous quarter.
Fees will generally be automatically deducted from your managed account*. As part of
this process, you understand and acknowledge the following:

   a) Your independent custodian sends statements at least quarterly to you showing
      all disbursements for your account, including the amount of the advisory fees
      paid to us.

   b) You provide authorization permitting us to be directly paid by these terms.

   c) If we send a copy of our invoice to you, our invoice includes a legend as required
      by paragraph (a)(2) of Rule 206(4)-2 under the Investment Advisers Act of
      1940.**
*In rare cases, we will agree to directly bill clients.
**The legend urges the client to compare information provided in their statements with
those from the qualified custodian in account opening notices and subsequent
statements sent to the client for whom the advisor opens custodial accounts with the
qualified custodian.

   1. Client’s advisory fees are due quarterly in advance.
       The Investment Advisory Agreement between Pacific Financial Strategies and
       the client will remain in effect until terminated by either party by written notice in
       accordance with the terms of the Investment Advisory Agreement. If you wish to
       terminate our services, we will refund the unearned portion based upon the
       number of days remaining in the billing quarter.

                                                                                     5   | P age

   2. Commissionable securities sales.
       We do not sell securities for a commission. To sell securities for a
       commission, we would need to have our associated persons registered with a
       broker-dealer. We have chosen not to do so.

   3. Short-term redemptions.
       Short-term redemptions fees are those imposed by Charles Schwab and Co.,
       Inc., the custodian, when shares are held 90 days or less. Typically, PFS does
       not affect trades that will incur short-term redemption fees. However, if a client
       requests cash from an account and a short-term trade is required to make funds

       available to meet the request, a fee of $50 is charged by the custodian. This fee
       is paid by the client to the custodian (Charles Schwab) directly.
       PFS traders will minimize the use of short-term redemptions that cause the client
       to be charged a short-term redemption fee. When rebalancing, the trader will
       review all trades to ensure that there are no short-term redemption fees unless
       necessary to meet the goals of the client.
       In the event of a market decline, PFS may see the need to act in the client’s best
       interest by selling a fund or funds and moving cash, which may incur a short-term
...

Item 7 – Types of Clients and Account Requirements
We have the following types of clients:

   ï   Individuals

   ï   Small business pension plans
Required Minimum Client Accounts
We have no minimum account size.