Stone Oak Wealth Management LLC

Item 5 Fees and Compensation
Portfolio Management Services
Our fee for portfolio management services is based on a percentage of the assets under management.
Fees are negotiable based on factors such as, but not necessarily limited to, the number of accounts
being managed, the amount of assets under management and the overall complexity of the client's
financial situation.

                               Assets Under Management                    Annual Fee
                                 On the First $1,000,000                 0.80 - 1.50%
                                 On the Next $2,000,000                  0.75 - 1.25%
                       On the Remaining Assets Over $3,000,000           0.50 - 1.00%

The advisory fee is a blended fee and is calculated by assessing the percentage rates using the
predefined levels of assets as shown in the above chart and applying the fee to the daily average of
the account value or the account value as of the last day of the previous quarter, resulting in a
combined weighted fee. For example, an account valued at $5,000,000 would pay a negotiated fee
on the first $1,000,000 that would range between 0.80% and 1.50%. The next $2,000,000 would be
charged a negotiated fee that would range between 0.75% and 1.25%. The remaining $2,000,000
would then be charged a negotiated rate that would range between 0.50% and 1.00%.

We do not negotiate rates but do set fees based upon various factors including the size of the account,
the service level required, the complexity of the account, and the types of investments that comprise
the portfolio.

Depending on the arrangements made at the inception of the engagement, we may agree to bill our
annual portfolio management fee either quarterly in advance or in arrears. The fee will, based on the
account value on the last trading day of the prior quarter or the last trading day of the billing cycle, as
appropriate.

If the portfolio management agreement is executed at any time other than the first day of a billing
cycle, 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.

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 deduct our fee directly from your account through the qualified custodian holding your funds
and securities. The exception for this is directly-managed held-away accounts, such as 401(k)'s or 529
plans. As it is impossible to directly debit the fees from these accounts, those fees will be assigned to
the client's taxable accounts on a pro-rata basis. Therefore, the amount of our advisory fee deducted
from your account may include fees attributable to your other accounts we manage, such as 401(k)'s
or 529 plans. If you do not have a taxable account, those fees will be billed directly to you.

We will deduct our advisory fee only when the following requirements are met:

    • You provide our firm with written authorization permitting the fees to be paid directly from your
      account held by the qualified custodian.
    • The qualified custodian agrees to send you a statement, at least quarterly, indicating all
      amounts disbursed from your account including the amount of the advisory fee paid directly to
      our firm.
    • In those states where required, we will send you an invoice showing the amount of the fee, the
      value of the assets on which the fee is based, the time period covered by the fee, and the
      specific manner in which the fee was calculated. In states where a concurrent fee notice is not
      required to be sent, your fees will be listed on the statement you receive from your custodian.

If you have any questions about the statement(s) you receive from the qualified custodian call our main
office number located on the cover page of this brochure. As for the states where the Firm is required
to send you an invoice, 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.

You may terminate the portfolio management agreement upon 30 days written notice. You will incur a
pro rata charge for services rendered prior to the termination of the portfolio 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.

We will not require prepayment of a fee more than six months in advance and in excess of $1200.

Selection of Other Advisers
Depending on the arrangements made at the inception of the engagement, and the Third Party Money
Manager ("TPMM") selected, we may either share in the advisory fee you pay directly to the TPMM, or
we may share a portion of the fee you pay to us with the TPMM, or we may charge you a fee separate
and apart from the fee charged by the TPMM. Advisory fees that are paid to the TPMM are established
and payable in accordance with the Form ADV Part 2 or other equivalent disclosure document
provided by each TPMM 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 TPMM. As
such, a conflict of interest exists where our firm or persons associated with our firm has an incentive to
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Item 7 Types of Clients
We offer investment advisory services to individuals, including high net worth individuals, pension and
profit sharing plans (but not the plan participants), charitable organizations and corporations or other
businesses not listed above.

There is no minimum dollar amount required to open and maintain an advisory account for assets that
we managed directly; 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.

We reserve the right, in our sole discretion, to decline to provide investment advisory services to any
person or entity for any reason.