Blue Water Asset Management LLC

Item 5 Fees and Compensation
Wealth Management Services
Our fee for wealth management services is based on a percentage of your assets we manage.
You will pay an annual management fee of up to 1.50%. This fee does not include transaction
fees, or other fees/expenses charged by brokers, custodians, or mutual funds. Mutual fund
purchases will be made at NAV (net asset value). Pre-existing client relationships may be
subject to fee that differs from the current fee disclosed in this brochure. In limited
circumstances, we may charge a flat fee. Our advisory fee is negotiable, depending on
individual client circumstances.

At our discretion, we may combine the account values of family members living in the same
household to determine the applicable advisory fee. For example, we may combine account
values for you and your minor children, joint accounts with your spouse, and other types of
related accounts.

The annual fee is billed quarterly, in advance, based on the asset value on the last day of the
previous calendar quarter as reported by the custodian. Fees will be assessed pro rata in the

event the advisory agreement is executed at any time other than the first day of a billing period.
For any deposits or withdrawals in excess of $25,000, the client will receive a prorated fee.
We will either send you an invoice for the payment of our advisory fee, or we will deduct our fee
directly from your account through the qualified custodian holding your funds and securities. We
will deduct our advisory fee only when you have given our firm written authorization permitting
the fees to be paid directly from your account. Further, the qualified custodian will deliver an
account statement to you at least quarterly. These account statements will show all
disbursements from your account. You should review all statements for accuracy.

You may terminate the wealth management agreement upon written notice to our firm. You will
incur a pro rata charge for services rendered prior to the termination of the wealth
management agreement, which means you will incur advisory fees only in proportion to the
number of days in the quarter for which you are a client. If you have pre-paid advisory fees
that we have not yet earned, you will receive a prorated refund of those fees.

Financial Planning and Consulting Services
We may charge a fixed fee for financial planning services, which ranges between $500 -
$5,000. The fee is negotiable depending upon the complexity and scope of the plan or
project, your financial situation, and your objectives. Payment terms will be set forth in the
agreement for services.

Should the engagement last longer than six months between acceptance of financial
planning agreement and delivery of the financial plan, any prepaid unearned fees will be
promptly returned to you less a pro rata charge for bona fide financial planning services
rendered to date.

In certain situations, we may enter into an hourly engagement. Our hourly fees range from
$165 - $275 per hour for planning and consulting services, which is negotiable depending on
the scope and complexity of the project, your situation, and other factors. An estimate of the
total time/cost will be determined at the start of the advisory relationship. In limited
circumstances, the cost/time could potentially exceed the initial estimate. In such cases, we
will notify you and request that you approve the additional fee.

We will not require prepayment of a fee more than six months in advance and in excess of
$1,200. At our discretion, we may offset our financial planning fees to the extent you
implement the financial plan through our Portfolio Management Service.

Selection of Other Advisers
For MM’s, clients should review each manager’s Form ADV 2A disclosure brochure and any
contract they sign with the MM (in a dual relationship). The client is responsible for all such
additional fees and expenses by the MM.

The advisory fee you pay to the MM is established and payable in accordance with the
brochure provided by each MM to whom you are referred. These fees may or may not be
negotiable. Our compensation may differ depending upon the individual agreement we have
with each MM. As such, a conflict of interest exists where our firm or persons associated with
our firm has an incentive to recommend one MM over another MM with whom we have more
favorable compensation arrangements or other advisory programs offered by MMs with whom
we have less or no compensation arrangements.

You may be required to sign an agreement directly with the recommended MM(s). You may
terminate your advisory relationship with the MM according to the terms of your agreement
with the MM. You should review each MM's brochure for specific information on how you may
terminate your advisory relationship with the MM and how you may receive a refund, if
applicable. You should contact the MM directly for questions regarding your advisory
agreement with the MM.

Pension Consulting Services
Our advisory fees for these customized services will be negotiated with the plan sponsor or
named fiduciary on a case-by-case basis.

You may terminate the pension consulting services agreement upon 7 days written notice to
our firm. You will incur a pro rata charge for services rendered prior to the termination of the
agreement, which means you will incur advisory fees only in proportion to the number of days
in the quarter for which you are a client. If you have pre-paid advisory fees that we have not yet
earned, you will receive a prorated refund of those fees.

Additional Fees and Expenses
As part of our investment advisory services to you, we may invest, or recommend that you
invest, in mutual funds and exchange traded funds. The fees that you pay to our firm for
investment advisory services are separate and distinct from the fees and expenses charged by
mutual funds or exchange traded funds (described in each fund's prospectus) to their
...

Item 7 Types of Clients
We offer investment advisory services to individuals (other than high net worth individuals),
high net worth individuals, banking or thrift institutions, investment companies, business
development companies, pooled investment vehicles (other than investment companies),
pension and profit sharing plans (but not the plan participants), charitable organizations,
corporations or other businesses not listed above, state or municipal government entities,
other investment advisers and insurance companies. However, we do reserve the right to
accept or decline a potential client for any reason in its sole discretion.

In general, we do not require a minimum dollar amount to open and maintain an advisory
account; however, we have the right to terminate your Account if it falls below a minimum size
which, in our sole opinion, is too small to manage effectively.

We may also combine account values for you and your minor children, joint accounts
with your spouse, and other types of related accounts to meet the stated minimum.