Portfolio Design Services LLC

Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
 ASSET MANAGEMENT
 PDS charges an annual investment advisory fee based on the total assets under
 management as follows:
                                                            Annual Fee
                      Assets Under Management
                                                              Rates
                             First $1,000,000                 1.50%
                             Next $1,000,000                  1.25%
                             Next $3,000,000                  1.00%
                             Over $5,000,000                  0.75%
 This is a tiered advisory fee schedule calculated by applying different rates to different
 portions of the portfolio. The annual fee is negotiable. Fees are billed quarterly in advance
 based on the amount of assets managed as of the close of business on the last business day
 of the previous quarter. Lower fees for comparable services may be available from other
 sources. Clients may terminate their account within five (5) business days of signing the
 Investment Advisory Agreement with no obligation and without penalty. After the initial
 five (5) business days, the agreement may be terminated by PDS with thirty (30) days
 written notice to Client and by the Client at any time with written notice to PDS. For
 accounts opened or closed mid-billing period, fees will be prorated based on the days
 services are provided during the given period. All unpaid earned fees will be due to PDS.
 Any unearned fees will be refunded to the Client. Client shall be given thirty (30) days prior
 written notice of any increase in fees. Any increase in fees will be acknowledged in writing
 by both parties before any increase in said fees occurs.
 ERISA PLAN SERVICES
 The annual fees are based on the market value of the Included Assets and will not exceed
 1.20%. The annual fee is negotiable and may be charged as a percentage of the Included
 Assets or as flat fee. Fees may be charged quarterly or monthly in arrears or in advance
 based on the assets as calculated by the custodian or record keeper of the Included Assets
 (without adjustments for anticipated withdrawals by Plan participants or other anticipated
 or scheduled transfers or distribution of assets). If the services to be provided start any
 time other than the first day of a quarter or month, the fee will be prorated based on the
 number of days remaining in the quarter or month. If this Agreement is terminated prior to
 the end of the billing cycle, PDS shall be entitled to a prorated fee based on the number of
 days during the fee period services were provided or Client will be due a prorated refund of
 fees for days services were not provided in the billing cycle.

 The fee schedule, which includes compensation of PDS for the services is described in detail
 in Schedule A of the ERISA Plan Agreement. The Plan is obligated to pay the fees, however
 the Plan Sponsor may elect to pay the fees. Client may elect to be billed directly or have fees
 deducted from Plan Assets. PDS does not reasonably expect to receive any additional
 compensation, directly or indirectly, for its services under this Agreement. If additional
 compensation is received, PDS will disclose this compensation, the services rendered, and
 the payer of compensation. PDS will offset the compensation against the fees agreed upon
 under the Agreement.
 FINANCIAL PLANNING AND CONSULTING
 PDS charges either a fixed fee or hourly fee for financial planning and consulting services.
 Prior to the planning process the Client will be provided an estimated plan fee. Fees for
 financial planning and consulting services can be paid either in advance upon the signing of
 the Agreement or 50% in advance with balance due upon delivery of the completed plan or
 consultation. Services are completed and delivered inside of ninety (90) days contingent on
 the timely receipt of all applicable documents from the Client. Client may cancel within five
 (5) days of signing Agreement with no obligation. If the Client cancels after five (5)
 business days, any unearned fees will be refunded to the Client, or any unpaid earned fees
 will be due to PDS based on the hours of work expended by PDS.
     FIXED FEES
     Financial planning services are offered based on a negotiable fixed fee up to $20,000
     dependent upon the complexity of the Client’s specific situation.
     HOURLY FEES
     Consulting services are offered based on an hourly fee of $250 per hour.
Client Payment of Fees
 Fees for asset management services are deducted from a designated Client account to
 facilitate billing. The Client must consent in advance to direct debiting of their investment
 account.
 Fees for ERISA services will either be deducted from Plan assets or paid directly to PDS.
 The Client must consent in advance to direct debiting of their investment account.
 Fees for financial planning and consulting will be billed to the Client and paid directly to
 PDS.
Additional Client Fees Charged
 Custodians may charge transaction fees and other related costs on the purchases or sales of
 mutual funds, equities, bonds, options and exchange-traded funds. Mutual funds, money
 market funds and exchange-traded funds also charge internal management fees, which are
 disclosed in the fund’s prospectus. PDS does not receive any compensation from these fees.
 All of these fees are in addition to the management fee you pay to PDS. For more details on
 the brokerage practices, see Item 12 of this brochure.
Prepayment of Client Fees
 Fees for asset management services may be billed quarterly in advance.
 Fees for ERISA 3(38) services may be billed in advance.
 Fees for financial planning and consulting services are billed in advance.
 If the Client cancels after five (5) business days, any unearned fees will be refunded to the
 Client, or any unpaid earned fees will be due to PDS.
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Item 7: Types of Clients
Description
 PDS generally provides investment advice to individuals, high net worth individuals, trusts
 or estates. Client relationships vary in scope and length of service.
Account Minimums
 PDS requires a minimum of $100,000 to open an account. At the discretion of PDS, the
 minimum account size may be lowered or waived.