Sonoma Allocations LLC

Item 5: Fees and Compensation

A. Fee Schedule

Portfolio Management Fees

Investment advisory fees are negotiable based on the scope and complexity of the services as well
as the amount of time and expertise required but generally do not exceed 1.50%.

The advisory fee is calculated using the value of the assets in the Account on the last business day
of the prior billing period.

These fees are generally negotiable and 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
Sonoma Allocations’ fees within five business days of signing the Investment Advisory Contract.
Thereafter, clients may terminate the Investment Advisory Contract generally with 14 days'
written notice.

401K/Pension Consulting Services Fees

Asset-Based Fees for Pension Consulting

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

The advisory fee is calculated using the value of the assets on the last business day of the prior
billing period

These fees are generally negotiable and 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
Sonoma Allocations’ fees within five business days of signing the Investment Advisory Contract.
Thereafter, clients may terminate the pension consulting agreement generally with 14 days'
written notice.

Financial Planning Fees

Fixed Fees

The negotiated fixed rate for creating client financial plans is up to $5,000.

Clients may terminate the agreement without penalty, for full refund of Sonoma Allocations’ fees,
within five business days of signing the Financial Planning Agreement. Thereafter, clients may
terminate the Financial Planning Agreement generally upon 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Asset-based portfolio management fees are withdrawn directly from the client's accounts with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 quarterly basis or may be invoiced and billed directly to the
client on a quarterly basis. Fees are paid in advance.

Payment of 401K/Pension Consulting Fees

Asset-based pension consulting fees are withdrawn directly from the client's accounts with
client's written authorization, or may be invoiced and billed directly to the client. Clients may
select the method in which they are billed. Fees are paid monthly or quarterly in advance or
arrears. Clients may select the frequency in which they are billed.

Payment of Financial Planning Fees

Financial planning fees are paid via check and wire.

Fixed financial planning fees are paid 50% in advance, but never more than six months in advance,
with the remainder due upon presentation of the plan.

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 Sonoma Allocations. Please see Item 12 of this brochure regarding broker-
dealer/custodian.

D. Prepayment of Fees

Sonoma Allocations collects fees in advance. Refunds for fees paid in advance but not yet earned
will be refunded on a prorated basis and returned within fourteen days to the client via check, or
return deposit back into the client’s account.

For all asset-based fees paid in advance, the fee refunded will be equal to the balance of the fees
collected in advance minus the daily rate* times the number of days elapsed in the billing period
up to and including the day of termination. (*The daily rate is calculated by dividing the annual
asset-based fee rate by 365.)

Fixed fees that are collected in advance will be refunded based on the prorated amount of work
completed at the point of termination.

E. Outside Compensation For the Sale of Securities to Clients

Supervised persons in their outside business activities (see Item 10 below) is licensed to accept
compensation for the sale of investment products to Sonoma Allocations clients. This presents a
conflict of interest and gives the supervised person an incentive to recommend products based
on the compensation received rather than on the client’s needs. When recommending the sale of
securities or investment products for which the supervised persons receives compensation,
Sonoma Allocations will document the conflict of interest in the client file and inform the client of
the conflict of interest. Clients always have the right to decide whether to purchase Sonoma
Allocations -recommended products and, if purchasing, have the right to purchase those products
through other brokers or agents that are not affiliated with Sonoma Allocations.

Commissions are not Sonoma Allocations’ primary source of compensation for advisory services.
Advisory fees that are charged to clients are not reduced to offset the commissions or markups
on securities or investment products recommended to clients.

Item 7: Types of Clients

Sonoma Allocations generally provides advisory services to the following types of clients:

        ❖       Individuals
        ❖       High-Net-Worth Individuals
        ❖       Pension and Profit Sharing Plans
        ❖       Charitable Organizations
        ❖       Corporations or Business Entities

There is an account minimum of $500,000, which may be waived by Sonoma Allocations in its discretion.