Pegasus Financial Group LLC

Item 5 – Fees and Compensation

The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into one or more
written agreements with the Advisor.

A. Fees for Advisory Services
Investment Management Services
Investment advisory fees are paid monthly or quarterly, in advance of each calendar month or quarter (“Billing
Period”), pursuant to the terms of the investment advisory agreement. Investment advisory fees are based on the
average daily balance of the of assets under management at the end of the prior billing period. Investment advisory
fees are based on the following schedule:

                   Assets Under Management ($)               Annual Rate (%)
                            Up to $500,000                         0.95%
                       $500,000.01 to $1,000,000                   0.90%
                      $1,000,000.01 to $3,000,000                  0.85%
                         $3,000,000 and above                      0.75%

                                                Pegasus Financial Group LLC
                                         4211 Pleasant Valley Road, Chantilly, VA 20151
                                           Phone: 703-956-6662 | Fax: 703-956-6334
                                                  https://www.pegasusfg.com/

The investment advisory fee in the first billing period of service is prorated from the inception date of the account[s] to
the end of the first billing period. Fees may be negotiable at the sole discretion of the Advisor. The Client’s fees will
take into consideration the aggregate assets under management with the Advisor. All securities held in accounts
managed by Pegasus will be independently valued by the Custodian. The Advisor will conduct periodic reviews of
the Custodian’s valuation to ensure accurate billing.

The Advisor’s fee is exclusive of, and in addition to any applicable securities transaction and custody fees, and other
related costs and expenses described in Item 5.C below, which may be incurred by the Client. However, the Advisor
shall not receive any portion of these commissions, fees, and costs.

Use of Independent Managers
As noted in Item 4, the Advisor will implement all or a portion of a Client’s investment portfolio utilizing one or more
Independent Managers. To eliminate any conflict of interest, the Advisor does not earn any compensation from an
Independent Manager. The Advisor will only earn its investment advisory fee as described above. Independent
Managers typically do not offer any fee discounts but may have a breakpoint schedule which will reduce the fee
with an increased level of assets placed under management with an Independent Manager. The terms of such fee
arrangements are included in the Independent Manager’s disclosure brochure and applicable contract[s] with the
Independent Manager. The total blended fee, including the Advisor’s fee and the Independent Manager’s fee, will
not exceed 2.00% annually.

Financial Planning Services
Pegasus offers financial planning services either on an hourly or annual basis. Hourly fees range up to $300 per hour.
Annual fees range up to $3,000 per year. Fees may be negotiable based on the nature and complexity of the services
to be provided and the overall relationship with the Advisor. An estimate for total hours and/or total costs will be
provided to the Client prior to engaging for these services.

Retirement Plan Advisory Services
Fees for retirement plan advisory services are charged an annual asset-based fee of up to 0.50%, billed in advance of
each calendar month or quarter (“Billing Period”), pursuant to the terms of the agreement. Retirement plan fees are
based on the market value of assets under management at the end of the prior billing period. Retirement plan
advisory fees may be negotiable depending on the size and complexity of the Plan.

B. Fee Billing
Investment Management Services
Investment advisory fees are calculated by the Advisor or its delegate and deducted from the Client’s account[s] at the
Custodian. The Advisor shall send an invoice to the Custodian indicating the amount of the fees to be deducted from
the Client’s account[s] at the beginning of the respective billing period. The amount due is calculated by applying the
billing period rate (annual rate divided by number of days in the year multiplied by the number of days in the billing
period) to the total assets under management with Pegasus at the end of the prior billing period. Clients will be
provided with a statement, at least quarterly, from the Custodian reflecting deduction of the investment advisory fee.
Clients are urged to also review and compare the statement provided by the Advisor to the brokerage statement from
the Custodian, as the Custodian does not perform a verification of fees. Clients provide written authorization permitting
advisory fees to be deducted by Pegasus to be paid directly from their account[s] held by the Custodian as part of the
investment advisory agreement and separate account forms provided by the Custodian.

Use of Independent Managers
For Client accounts implemented through an Independent Manager, the Client’s overall fees may include
Pegasus’s investment advisory fee (as noted above) plus investment management fees and/or platform fees
charged by the Independent Manager[s], as applicable. In certain instances, the Independent Manager or the
Advisor may assume responsibility for calculating the Client’s fees and deduct all fees from the Client’s account[s].

Financial Planning Services
Financial planning fees are invoiced by the Advisor and are due upon completion of the agreed upon deliverable[s].

                                                Pegasus Financial Group LLC
                                         4211 Pleasant Valley Road, Chantilly, VA 20151
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Item 7 – Types of Clients

Pegasus offers investment advisory services to individuals, high net worth individuals, businesses, estates, trusts,
and retirement plans. Pegasus generally does not impose a minimum relationship size.