Pacific Wealth Advisory Services LLC

Item 5: Fees and Compensation

A. Fee Schedule

Portfolio Management Fees

        Total Assets Under Management          Annual Fees
        All Assets                             Up to 1.00%

PWASL uses the value of the account as of the last business day of the billing period for
purposes of determining the market value of the assets upon which the advisory fee is
based.

The final fee schedule will be memorialized in the client’s advisory agreement. Clients
may terminate the agreement without penalty for a full refund of PWASL's fees within
five business days of signing the Investment Advisory Contract. Thereafter, clients may
terminate the Investment Advisory Contract generally with 15 days' written notice.

B. Payment of Fees

Payment of Portfolio Management Fees

Asset-based portfolio management fees are withdrawn directly from the client's accounts
with client's written authorization on a monthly and/or quarterly basis or may be
invoiced and billed directly to the client on a monthly and/or quarterly basis to be paid
via check. Clients may select the method in which they are billed. Fees are paid in arrears.

C. Client Responsibility for Third-Party Fees

Clients are responsible for the payment of all third-party fees (i.e., custodian fees,
brokerage fees, mutual fund fees, transaction fees, etc.). Those fees are separate and
distinct from the fees and expenses charged by PWASL. PWASL can, at its discretion,
reimburse clients certain fees that are incurred when moving accounts over to the firm.
Please see Item 12 of this brochure regarding broker-dealer/custodian.

       D. Prepayment of Fees

       PWASL collects its fees in arrears. It does not collect fees in advance.

Item 7: Types of Clients

PWASL generally provides advisory services to the following types of clients:

       ❖      Individuals
       ❖      High-Net-Worth Individuals

There is no account minimum for any of PWASL’s services.