Proactive Wealth Strategies LLC

Item 5: Fees and Compensation

      A.      Fees Charged

      Financial Planning

      Financial planning clients are charged a flat fee or hourly fee based upon the complexity of the
      planning and the unique financial situation of the client. The fixed fee may range from $100 to
      $10,000 and on an hourly basis of $500 per hour to $2,000 per hour. In the sole discretion of PWS,
      the fee due for financial planning services may be included in the asset management fee.

      Wealth.com for Estate Planning

      The cost for the use of Wealth.com will range from $1,000 to $4,000 on a fixed fee basis. The exact
      fee will depend on the anticipated time associated with assisting the client in navigating the
      Wealth.com process. This fixed fee will be payable by the client by check or wire, upon receipt of an
      invoice. The fee will be due and payable based upon PWS’s assistance and not based upon the
      ultimate completion of estate planning documents. This means that a client could have a fee payable
      to PWS prior to documents being completed.

      Asset Management

All investment management clients will be required to execute an Investment Management
Agreement that will describe the type of management services to be provided and the fees, among
other items. Clients are advised that they may pay fees that are higher or lower than fees they may
pay another advisor for the same services and may in fact pay lower fees for comparable services
from other sources. Clients are under no obligation at any time to engage or to continue to engage,
PWS for investment services.

PWS asset management fees are as follows:

            Assets Under Management                                    Advisory Fee %
                $10,000 - $250,000                                         1.50%
               $250,001 - $500,000                                         1.40%
               $500,001 - $750,000                                         1.35%
              $750,001 - $1,000,000                                        1.25%
             $1,000,001 - $3,000,000                                       1.00%
             $3,000,001 - $5,000,000                                       0.90%
              $5,000,001 and above                                         0.80%

Fees are negotiable and may be higher or lower than this range, based on the nature of the account,
and the origin of the client. Factors affecting fee percentages include if the account is actively or
passively managed, the size of the account, complexity of asset structures, the non-management
services provided to the client, and any other unique factors that may exist. All clients, but especially
those with smaller accounts, should be advised they may receive similar services from other
professionals for higher or lower overall costs.

Because there are different fees charged for account that are managed on an active basis versus a
passive basis, PWS does have conflict of interest where PWS has an incentive to allocation assets to
active management because due to the higher fees charged. PWS mitigates this risk by disclosing it
to the public.

PWS may provide advisory services through certain programs sponsored by LPL Financial LLC (LPL), a
registered investment advisor and broker-dealer. Below is a brief description of each LPL advisory
program available to PWS. For more information regarding the LPL programs, including more
information on the advisory services and fees that apply, the types of investments available in the
programs and the potential conflicts of interest presented by the programs please see the program
account packet (which includes the account agreement and LPL Form ADV program brochure) and
the Form ADV, Part 2A of LPL or the applicable program.

Optimum Market Portfolios Program (OMP)

OMP offers clients the ability to participate in a professionally managed asset allocation program
using Optimum Funds shares. Under OMP, client will authorize LPL on a discretionary basis to
purchase and sell Optimum Funds pursuant to investment objectives chosen by the client. PWS will
assist the client in determining the suitability of OMP for the client and assist the client in setting an
appropriate investment objective. PWS will have discretion to select a mutual fund asset allocation
portfolio designed by LPL consistent with the client’s investment objective. LPL will have discretion
to purchase and sell Optimum Funds pursuant to the portfolio selected for the client. LPL will also
have authority to rebalance the account.

A minimum account value of $10,000 is required for OMP. In certain instances, LPL will permit a
lower minimum account size.

Model Wealth Portfolios Program (MWP)

MWP offers clients a professionally managed mutual fund asset allocation program. PWS will obtain
the necessary financial data from the client, assist the client in determining the suitability of the MWP
program and assist the client in setting an appropriate investment objective. PWS will initiate the
steps necessary to open an MWP account and have discretion to select a model portfolio designed
by LPL’s Research Department consistent with the client’s stated investment objective. LPL’s
Research Department, a third-party portfolio strategist and/or Advisor, through its IAR, may act as a
portfolio strategist responsible for selecting the mutual funds or ETFs within a model portfolio and
for making changes to the mutual funds or ETFs selected.

The client will authorize LPL to act on a discretionary basis to purchase and sell mutual funds and
ETFs and to liquidate previously purchased securities. The client will also authorize LPL to effect
rebalancing for MWP accounts.

MWP requires a minimum asset value for a program account to be managed. The minimums vary
depending on the portfolio(s) selected and the account’s allocation amongst portfolios. The lowest
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Item 7: Types of Clients

       Clients advised include individuals, families, and trusts. PWS does not have an account minimum to
       start or maintain an investment advisory relationship.