Pacific Wealth Strategies Group Inc

Item 5 - Fees and Compensation

As described in greater detail below, PWSG charges different types of fees, including fees based on a
percentage of AUM, fixed fees, and hourly fees. The specific fees charged by PWSG for its Investment
Management, Financial Planning/Consulting, and Pension Consulting Services will be set forth in each
client's Agreement.

Fees can be negotiable under certain circumstances at the sole discretion of PWSG. In addition, PWSG
has full discretion to waive its advisory fees in their entirety. Although PWSG believes its advisory fees are
competitive, clients should be aware that lower fees for comparable services could be available from other
sources.

Investment Management Services Fees

PWSG charges annual advisory fees up to 2.0% of a client's AUM for Investment Management Services.
Our fees are subject to negotiation based upon factors including the amount of AUM (we will consider all
accounts under management for the client's household), and the complexity of the services that will be
provided. The annual advisory fees are charged on a pro rata quarterly basis in arrears and calculated
based on the closing market value of the account on the last day of the calendar quarter, including cash
and cash equivalents.

Should a client open an account during the quarter, management fees will be prorated for assets managed
for a partial quarter based on the number of days remaining in the quarter. Assets deposited or withdrawn
by the client between billing cycles will be assessed an investment advisory fee based only upon the number
of days the assets are in the account. In the event that PWSG's services are terminated mid quarter; the
annual fee shall be prorated through the date of termination as defined in the Agreement and any pre -paid
unearned fees will be promptly refunded to the client.

Payment for PWSG's investment management fees will be deducted from each client's account on a
quarterly basis by their custodian and paid directly to us, unless otherwise directed in writing by a client.
The consent for deduction of fees is generally contained in the Agreement. Clients' custodians will deliver
a periodic (at least quarterly) account statement directly to clients, which will include all transactions that
took place in the account during the period covered and reflect any fees deducted and paid to us.

In addition to PWSG's investment advisory fee, the client shall also incur, relative to mutual fund purchases,
charges imposed directly at the mutual fund level (i.e., fund advisory fees and expenses). The Investment
Advisory Agreement between PWSG and the client will continue in effect unless terminated by either party

by written notice in accordance with the terms and conditions of the applicable agreement. PWSG's
investment advisory fee will be prorated through the date of termination. If the investment advisory fee was
paid in advance, a pro rata refund will be sent to the client and if the investment advisory fee is charged in
arrears, the pro rata fee due will be charged directly to the client's account or invoiced to the client.

There are times when PWSG recommends that a client utilize a margin account. The use of margin in an
investment management account will likely increase a client's asset-based fee. If margin is used to purchase
additional securities, the total value of eligible account assets increases, as does the client's asset -based
advisory fee paid to the Firm. In addition, clients will be charged margin interest on the debit balance in their
account. Notably, the increased asset-based advisory fee that a client pays presents a conflict since there
is an incentive for PWSG to recommend the use of margin. However, please note that using margin is not
suitable for all investors; the use of margin increases leverage in a client's account and therefore increases
overall risk. Please refer to Item 8 below for further information on the risks surrounding margin accounts.

Financial Planning/Consulting Services Fees

An anticipated fixed fee between $2,500 and $10,000 or an hourly fee at a rate of $350 per hour will be
charged for Financial Planning/Consulting Services. The fee for Financial Planning/Consulting Services is
negotiable based upon the estimated amount of time anticipated to complete the requested services, and
the complexity of the services to be provided.

PWSG will provide the client with the estimated cost to complete the requested Financial
Planning/Consulting Services before commencing such services. One-half of the estimated cost is generally
due and payable at the time the client's agreement is executed, and the remainder of the fee is due upon
presentation of a financial plan or the rendering of consulting services; however, PWSG does not require
or solicit prepayment of more than $1200 in fees per client, six months or more in advance.

A fee payment schedule can be negotiated dependent on the scope of Financial Planning/Consultation
Services.

Financial plans or consultations will be completed within 6 months of the contract date.

Pension Consulting Services Fees

PWSG charges annual advisory fees up to 2.0% for Pension Consulting Services; however, fees are
negotiable and arrangements with any particular client can differ from those described above . The annual
fee is billed quarterly in arrears based upon the market value of the assets on the last day of the prior
quarter. Fees will be assessed pro rata in the event the pension consulting agreement is executed at any
time other than the first day of a billing period.

Pension consulting fees are withdrawn directly from the client's accounts with client's written authorization
or can be invoiced and billed directly to the client and clients can select the method in which they are billed.

In the event that PWSG's services are terminated mid-quarter, the fee shall be prorated through the date of
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Item 7 - Types of Clients

PWSG generally provides investment advice to the following types of clients:

     •    Individuals
     •    High-Net Worth Individuals
     •    Pension and profit-sharing plans
     •    Trusts, estates, or charitable organizations
     •    Corporations or business entities other than those listed above
     •    Broker/dealers

All clients are required to execute an investment advisory agreement for services in order to establish a
client arrangement with a PWSG investment advisor.

Minimum Investment Amounts Required

There are no minimum investment amounts or conditions required for establishing an account managed
by PWSG.