Laguna Wealth Advisors LLC

Item 5 Fees and Compensation
Comprehensive Portfolio Management Services

Our fee for portfolio management services is based on a percentage of the assets in your account and
is set forth in the following annual fee schedule:

      Assets Under Management                   Maximum Annual Percentage of Assets Charged
             First $500,000                                             1.50%
             Next $500,000                                              1.25%
            Next $2,000,000                                             0.90%

           $3,000,000 and Up                                            0.65%

* Please note that the above fee schedule is a tiered fee schedule. For example, if a client has $3,500,000
in assets under management, assuming the maximum annual percentage of assets is charged, the
annualized advisory fee will be $35,000. The calculation will be as follows:

($500,000 x 1.50%) + ($500,000 x 1.25%) + ($2,000,000 x 0.90%) + ($500,000 x 0.65%) = $7,500 +
$6,250 + $18,000 + $3,250 = $35,000 annualized fee.

Fees to be assessed will be outlined in the advisory agreement to be signed by the client. Our firm bills
on cash unless indicated otherwise in writing. Annualized fees are billed on a pro-rata basis quarterly in
arrears based on the value of the account(s) on the balance of the last day of the previous quarter. If the
portfolio management agreement is executed at any time other than the first day of a calendar quarter,
our fees will apply on a pro rata basis, which means that the advisory fee is payable in proportion to the
number of days in the quarter for which you are a client. Fees are negotiable, and tiers may be
customized per the scope and complexity of the agreement; however no client fees will ever exceed
1.50%, moreover fees will be deducted from client account(s). Adjustments will be made for deposits
and withdrawals during the quarter. In rare cases, our firm will agree to directly invoice. As part of this
process, Clients understand the following:

   a) The client’s independent custodian sends statements at least quarterly showing the market
      values for each security included in the Assets and all account disbursements, including the
      amount of the advisory fees paid to our firm;
   b) Clients will provide authorization permitting our firm to be directly paid by these terms. Our firm
      will send an invoice directly to the custodian; and
   c) If our firm sends a copy of our invoice to the client, a legend urging the comparison of information
      provided in our statement with those from the qualified custodian will be included.

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. Combining account
values may increase the asset total, which may result in your paying a reduced advisory fee based on
the available breakpoints in our fee schedule stated above.

We will 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.

The maximum annual fee charged to clients utilizing SMA’s will not exceed 1.95%. Our firm will debit
fees for this service as disclosed in the executed advisory agreement between the client and our firm.
This fee shall be in addition to any fees assessed by the chosen SMA’s. The SMA’s we recommend
will not directly charge you a higher fee than they would have charged without us introducing you to
them. SMA’s establish and maintain their own separate billing processes over which we have no
control. They will directly bill you and describe how this works in their separate written disclosure
documents.

We encourage you to reconcile our invoices with the statement(s) you receive from the qualified
custodian. If you find any inconsistent information between our invoice and the statement(s) you receive

from the qualified custodian, call our main office number located on the cover page of this brochure.

Retirement Plan Consulting:

Our Retirement Plan Consulting services are billed on an a fee based on the percentage of Plan assets
under management. The total estimated fee, as well as the ultimate fee charged, is based on the scope
and complexity of our engagement with the client. Fees based on a percentage of managed Plan assets
will not exceed 1.50%. The fee-paying arrangements will be determined on a case-by-case basis and
will be detailed in the signed consulting agreement.

Additional Expenses Not Included in the Asset-Based Advisory Fee

You should also understand that the shares of certain mutual funds offered in the program may impose
short-term trading charges (typically 1%-2% of the amount originally invested) for redemptions generally
made within short periods of time. These short-term charges are imposed by the funds to deter “market
timers” who trade actively in fund shares. You should consider these short-term trading charges when
selecting the program and/or mutual funds in which they invest. These charges, as well as operating
expenses and management fees, may increase the overall cost to you by 1%-2% (or more). More
information is available in each fund’s prospectus.

You should be aware that exchange traded funds (“ETFs”) incur a separate management fee, typically
0.20%-0.40% of the fund’s assets annually (although individual ETFs may have higher or lower expense
...

Item 7 Types of Clients

We offer investment advisory services to high-net-worth individuals, high income professionals, qualified
retirement plans, business entities (such as corporations, LLC’s, LLP’s), trusts and estates, and
individuals anticipating or in retirement.

Our firm does not impose requirements for opening and maintaining accounts or otherwise engaging
us.