Emerald Bay Wealth Management LLC

Item 5 - Fees and Compensation
Emerald Bay employs a standard fee schedule for clients. Emerald Bay charges 0.8% on the first
$10 million of assets under management and 0.6% on any assets under management above $10
million. Exceptions to the fee schedule can be made with approval of management. Fees are
charged quarterly in advance. Any client that terminates Emerald Bay’s services before the end of
a quarter will be proportionately refunded any prepaid fees. Although Emerald Bay believes its
fees are competitive, lower fees for comparable services may be available from other sources.

Emerald Bay charges its fees by instructing the custodian to debit the client’s account for its fees.
The custodian pays Emerald Bay directly out of the client’s assets. Emerald Bay sends an
itemized invoice to the client, which includes the asset value upon which the fees are based, how
the fees were computed and the period of time for the fees. It remains the client’s responsibility to
understand and verify the fee calculations and the amount debited from the client’s account.

Emerald Bay also provides investment advice on a consulting basis in return for an hourly
consulting fee. Such fees would only be charged to individuals who are not already paying
management fees. Consulting based fees are set at $300 per partner per hour and are not
negotiable. Consulting-based fees will be charged to the client monthly in arrears.

Item 7 - Types of Clients
Emerald Bay provides investment advice primarily to financially sophisticated individuals
including trusts, estates, 401(k) plans and IRAs of individuals. The stated minimum for opening an
account is $5,000,000. Exceptions to the stated minimum can be made with approval of
management.