Flagstone Financial Management LLC

Item 5 – Fees and Compensation

In addition to the information provided in Item 4 – Advisory Business, this section provides additional
details regarding our firm’s services along with descriptions of each service’s fees and compensation
arrangements. It should be noted that lower fees for comparable service may be available from other
sources.

Flagstone Financial Management, LLC                 Page 9                       Form ADV Part 2A: Firm Brochure

Investment Management - Strategic Wealth Management Program

The asset management fee will be set forth in the agreement between you and LPL Financial. The two
primary ways we charge asset-based fees are as follows:

    1. Household Tiered Billing – We will combine assets we manage by “household” so that all
       accounts held by a client and his or her spouse will be aggregated together for purposes of
       billing. Your advisory fee will be a blended % rate based on your total household balance at the
       end of each quarter, using the tiers shown in the table below.

                                These dollars                    are billed at this rate:

                                $1- $1,000,000                           1.25%

                          $1,000,001 to $5,000,000                        .75%

                                  $5,000,001+                             .40%

         *Clients with at least $1,000,000 in total household assets under management will receive
         financial planning services at no additional cost.

         For example, if your total household balance is $1,250,000 at the end of the quarter, the
         annualized blended fee rate would be 1.15% (1M is billed at 1.25% and the amount above that up
         to 5M, is billed at .75%, and so on).

         Under household tiered billing, the percentage fee charged on each account will automatically
         adjust each quarter as the assets managed by Flagstone increase/decrease based on market
         changes or deposits and withdrawals.

    2. Fixed Percentage Billing – We will assign a fixed annual percentage charged on each account
       managed by Flagstone. Under this structure, the annual investment advisory fee will vary
       between 0.00% and 1.5% and will not change automatically as assets in your account go up or
       down based on market changes or deposits and withdrawals. This billing method will be used for
       client account types not supported by LPL’s household billing technology or for fees that have
       been negotiated or grandfathered.

The annual fee is billed quarterly, in advance, based on the account value at the end of the previous
billing period, and is deducted directly from your account. You must provide LPL with written
authorization to debit advisory fees from your accounts and pay the fees to Flagstone Financial
Management.

Fees are negotiable and can vary depending on the types of securities held in your account, complexity of
your portfolio, your financial planning needs, and the time and effort necessary to advise and manage
your account(s).

Prior to engaging Flagstone Financial Management to provide investment management services through
the SWM Program, you are required to enter into a formal investment advisory agreement with Flagstone

Flagstone Financial Management, LLC                  Page 10                     Form ADV Part 2A: Firm Brochure

setting forth the terms and conditions under which we manage your assets and a separate
custodial/clearing agreement with LPL Financial, including the detail of your investment advisory fees.

Our SWM Program is a non-wrap or traditional account. This means in addition to our investment
advisory fee; you also pay certain transaction charges to defray the costs associated with trade execution
and account maintenance. These costs are paid directly to LPL Financial and are listed in the LPL
Strategic Wealth Management account agreement. Flagstone’s management fees are separate and
distinct from these fees.

You can also incur charges imposed by third parties, such as investment companies, in connection with
investments recommended to you and made through your account(s). A description of these fees and
expenses is available in each investment company security’s prospectus and can include, but is not
limited to, management fees, 12b-1 fees, or other fund expenses. If the fund also imposes sales charges,
you might pay an initial or deferred sales charge. In such cases where a 12b-1 fee is paid, LPL retains
the entire 12b-1 fee and our representatives do not receive any portion of the 12b-1 fee. For ERISA
accounts, there is an offset for any amount of 12b-1 fees. Flagstone’s management fees are separate
and distinct from the fees and expenses charged by investment company securities to their shareholders.

Our SWM Program can cost you more or less than if the assets were held in a traditional brokerage
account. In a brokerage account, you are charged commissions for each transaction, and the
representative has no duty to provide ongoing advice with respect to the account. If you plan to follow a
buy and hold investment strategy for the account or do not wish to purchase ongoing investment advice
or management services, you should consider opening a commission-based brokerage account through a
different financial professional.

Either party can terminate the agreement for Flagstone Financial Management’s advisory services at any
time. If services are terminated within five business days of executing the agreement, services are
terminated without penalty and a full refund of all fees paid in advance is provided. If services are
terminated after the initial five-day period, we provide you with a prorated refund of fees paid in advance.
The refund is based on the number of days service is provided during the final billing period. Termination
...

Item 7 – Types of Clients

Flagstone Financial Management generally provides investment advice to the following types of clients:

    ●    Individuals
    ●    High net worth individuals
    ●    Foundations and endowments
    ●    Banks or thrift institutions
    ●    Pension and profit-sharing plans
    ●    Trusts, estates, or other charitable organizations
    ●    Corporations or business entities other than those listed above

You are required to complete a written agreement with Flagstone Financial Management specifying
specific advisory services to establish a client arrangement with Flagstone Financial Management.

Minimum Investment Amounts Required

We do not impose a minimum investment amount for the SWM Program.