Emerson Equity LLC

Item 5. Fees and Compensation: How Emerson Equity is compensated.

5.A. Fees are negotiable.

Financial Plans

The planner estimates the fee for preparing the plan, based on the complexity and amount of the work to be
accomplished. In all cases the client can accept or reject the estimate or fee for the plan before any work is
undertaken on the client’s behalf. At times, Adviser consults other professionals as necessary in working for the
client, with the client's prior approval.

For certain clients the Adviser prepares a financial plan for a flat fee which typically ranges from $1,500 to $75,000
or more, plus expenses. Payment is due upon delivery of the financial plan. If additional work becomes necessary,
the planner contacts the client for approval of the amount before further work is undertaken.

For certain clients, financial plans are prepared at an hourly rate of $75 to $250 plus expenses. The planner presents
the client with a proposed total fee for preparing the plan before work is begun. In the event that we determine the
cost is higher than the original agreement, the Adviser representative revisits with the client in order to sign a new
agreement. Payment is due upon receipt of the Adviser's invoice at the completion of the plan.

Investment portfolio management fees

The Adviser calculates and bills its portfolio management fees at the end of each fiscal quarter, charging for services
during the last quarter.

The Adviser's current fees are based on the value of the account at the close of the last business day of the quarter,
and are negotiable with a maximum fee charged of 2.5%.

Note: Loans received through the Intermediary Loan Program through Goldman Sachs Bank USA are not included in
your asset management fee, however, the assets used to collateralize such loans are still included in the asset
management fee calculation.

In addition to the above fees, the Advisor, as a registered Broker-Dealer, also receives 12b-1 fees for certain mutual
fund transactions. See section 5.E of this document for additional information regarding 12b-1 fees paid to Emerson
Equity.

Clients may opt to pay a flat fee for portfolio management services. The Adviser and the client negotiate the flat fee.
Either party may terminate a contract by giving written notice to the other delivered either personally or by mail.
The Adviser may not assign the agreement without the full knowledge and prior written consent of the client.

The rates set forth above are general rates for Adviser and are not necessarily the rate being charged to your account.
Some states take the position that an annual fee of 2% or greater of assets under management is generally higher
than the industry norm. In those instances, in which a client is charged 2% or higher, the Adviser believes that this
fee is based on its experience and skill. Similar services are available for a lower fee from other advisers.

Insurance Consulting

Emerson Equity’s adviser representatives, upon a client’s request, perform insurance consulting at an hourly rate.
This rate varies depending upon the client’s needs and the complexity of the review. The adviser representative
presents the client with a proposed total fee for the consultation before work is begun. In the event that we
determine the cost is higher than the original agreement, the Adviser representative revisits with the client in order
to sign a new agreement. Payment is due upon receipt of the Adviser's invoice at the completion of the consultation.
This fee is charged separately from advisory fees for managed assets. As part of this service, the adviser
representatives will review the client’s current insurance policies, as well as the client’s needs as outlined in the
investment profile to determine where there may be gaps in coverage or options available that will better suit the
client’s needs. As with all Emerson Equity advisory services, recommendations will only be made if they are in the
client’s best interest. The fact that this service results in fees paid to Emerson and the adviser representative creates
an inherent conflict of interest. We address that conflict by providing disclosure through this document, as well as
discussing the additional fees with the client and receiving written confirmation of their understanding and
agreement to the fees prior to providing the service.

With respect to any recommended product or strategy, the client always has the right to decide to act on the
recommendations of the Adviser, and, if they do decide to act, they always have the right to do so with a professional
of their choosing.

Portfolio Evaluation Services

Emerson Equity representatives provide portfolio evaluation services on a flat-fee basis. While this fee varies based
upon the complexity of the review and services requested, it typically approximates $1,500.

Seminars

Emerson Equity representatives hold seminars on a negotiated fee basis, either as a flat amount per attendee, or
flat fee for a group of attendees. Fees are due upon completion of the seminar, and are the responsibility of the
attendee(s).

Third Party Investment Advisers’ Programs

In some instances, Emerson Equity’s representative recommends a suitable third party investment Adviser to
perform investment management services on behalf of the client. Emerson Equity receives a percentage of the
Advisory fee the client pays to the third party investment Adviser. This advisory fee varies, but presently is up to
2%. This fee varies by third party investment adviser, but it is always disclosed to the client prior to or concurrently
with the client’s engagement of the third party adviser.

Management of Private Placement Life Insurance / Insurance Dedicated Funds (Single Investor Private Funds)

For certain accredited investors, the Adviser recommends the use of Private Placement Life Insurance. Adviser
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Item 7. Types of Clients.

Typically, our clients include high net worth and other individuals, corporations and other businesses, trusts, and
pension and profit-sharing plan participants. We are prepared to provide services to charitable organizations and
estates as well. Emerson Equity does not require a minimum account size for its Advisory services, although some
third party Advisory investment programs do.