Eastsound Capital Advisors LLC

Item 5: Fees and Compensation

A. Fee Schedule and Billing

Investment Supervisory Services Fees

Fees are negotiable and range from 0% annual fee up to a maximum annual fee of 1.95%,
depending upon the needs of the client, complexity of the proposed investment strategy,
and overall situation. The final fee schedule is found in Section XXV of the Investment
Advisory Contract. Clients at no time will be charged a total management fee greater than
1.95%. Lower fees for comparable services may be available from other sources.
Fees are paid either monthly or quarterly in advance, or either monthly or quarterly in
arrears. Client may terminate the Agreement within five (5) business days of signing this
Agreement, without penalty, and with full refund.

If fees are charged in advance, fees will be charged based on the value of the account on
the last business day of the prior month or quarter, respectively. Clients may terminate
their contracts at any time with ten (10) days written notice. If client terminates their
contract, client will be charged to the last business day prior to termination and
reimbursed for any business days remaining in the month or quarter billed in advance. If
fees are charged in arrears, fees will be charged based on the value of the account on the
last business day of the prior month or quarter up to the date of termination based on the
value upon termination.

Advisory fees are withdrawn by the custodian directly from the client’s accounts with
client written authorization. In all instances, the Adviser will send the client a written
invoice, including the fee, the formula used to calculate the fee, the fee calculation itself,
the period covered by the fee, and, if applicable, the amount of assets under management
on which the fee was based and the name of the custodian(s) on your fee invoice. The
Adviser will send these to the client concurrent with the request for payment or payment
of the Adviser’s advisory fees. We urge the client to compare this information with the
fees listed in the account statement. In the event a third-party adviser is utilized, either
said adviser or ECA will deliver a written invoice detailing the same information.

The investment management agreement will continue in effect until terminated by either
party by giving the other ten (10) business days written notice.

Third-Party Investment Advisory Fees

Fees paid by clients to independent third-party managers are established and payable in
accordance with the ADV Part 2A brochure or other equivalent disclosure document of
each independent third-party manager to whom the firm refers its clients and may or may

not be negotiable. The facts and circumstances of negotiability are contained in the
disclosure documents of each third-party manager. Clients who are referred to third-party
investment managers will receive a Part 2A brochure providing details of services
rendered and fees to be charged. Clients will receive copies of the Firm’s and third-party
investment manager’s Parts 2A at the time of the referral.

Sub-Advisor and Signal Service Fees

ECA may also act as a sub-advisor (third-party advisor to assist in management of a client
portfolio) or signal provider (providing proprietary trading information called signals, to
other investment advisors to purchase or sell security positions based on analysis at their
sole discretion) to unaffiliated third-party advisors and ECA would receive an asset-based
fee according to assets under advisement payable by the third-party advisor. The sub-
advisor fees or signal service fees charged are negotiable and will not exceed any limit
imposed by any regulatory agency. This relationship will be memorialized in each
contract between ECA and the third-party advisor.
The unaffiliated third-party advisor may terminate the sub-advisor agreement with or
without cause at any time upon written notice to the ECA. ECA may terminate the
agreement with or without cause at any time upon one week’s prior written notice to the
unaffiliated third-party advisor. The unaffiliated third-party advisor will pay the prorated
portion of the fees as of the termination date. The termination of the unaffiliated third-
party by its client will automatically terminate ECA’s role as the sub-advisor.

Financial Planning Fees

Planning fees may be billed separately or included as flat rate fees and are
assessed quarterly or annually, paid in advance or arrears, as per the client
agreement, and particular to the services offered by the IAR. Fees can be paid by
check or wire transfer. The flat fee may be collected either 100% or 50% upfront
and the remainder collected upon completion and delivery of the plan, or
accessed quarterly or annually, paid in advance or arrears. The financial plan
will be delivered within six months.

The fee for comprehensive financial planning services is dependent on the
complexity of the plan and needs of the client. Fees for such services typically
range from $750-$5,000 per plan as contracted for with clients in advance. Hourly
rates vary from $150 to $500 per hour billed upon completion. Fees may be
negotiated at the discretion of the IAR, or the service included free with account
management.

The client is under no obligation to act upon the investment advisor’s
recommendation and if client elects to act on any recommendation, the client is
under no obligation to affect the transaction through the investment advisor.
Lower fees for comparable services may be available from other sources.

Newsletter Fee

ECA does not currently offer a paid newsletter service. If any client of ECA is assigned an
IAR who publishes a paid financial newsletter as an outside business activity (OBA), that
IAR will offer to provide the client with the newsletter at no cost through their OBA. Also,
prior newsletter subscribers who become ECA clients will be rebated pro rata any
newsletter charges paid in advance through the IAR’s OBA.

Educational Seminar/Workshop Fees
...

types of clients:

           ❖   Individuals
           ❖   High-Net-Worth Individuals
           ❖   Charitable Organizations
           ❖   Corporations or Other Businesses/ Institutions

Minimum Account Size

There is an account minimum of $100,000.00. This minimum may be waived by the investment
advisor, based on the needs of the client and the complexity of the situation.