Intercarolina Financial Services Inc

Item 5 – Fees and Compensation
5A. Manner of Compensation
This section provides details on fees and compensation arrangements for our advisory services. We have
determined that the fees we charge clients are reasonable considering the type of services being provided,
our experience, expertise and the sophistication and fee bargaining power of the client. Clients should be
aware that lower fees for comparable services may be available from other sources. We are compensated
for our investment advisory services by either a percentage of assets under management or fixed fees.
Payment of Wrap Account Fees are described in separate IA Agreements endorsed by the client. These
agreements indicate the portion of the wrap fee retained by IFS.
5B. Methods of Fee Payment
Payment of our portfolio management fees will be made by the qualified custodian holding your funds
and securities provided you grant written authorization permitting our fees to be paid directly from your
account. Alternatively, at your discretion, we will bill you directly for our services. We will not have
physical access to your funds for payment of fees. Your qualified custodian agrees to deliver an account
statement, at least quarterly, directly to you, showing all disbursements from your account. We
encourage you to review all account statements for accuracy. Both we and you will have electronic access
to your account statements.
Fees are negotiable for both non-retirement accounts and retirement plan accounts. Clients will incur
brokerage and other transaction costs and are directed to Item 12-Brokerage Practices, which discusses
how often these fees are billed or deducted from client accounts is described further in this section.
Our account fees for non-retirement accounts portfolio management services may be based on the
410following methods: quarterly in advance based on the market value of your account’s assets under our
management on the first day of the quarter, quarterly in arrears based on the market value of your
account’s assets under our management on the last day of the quarter or monthly based on the market
value of your account’s assets under our management on the last day of the month. Fees for partial

quarter or monthly services are adjusted on a pro-rate basis. Our fees will be assessed pro rata in the
event the portfolio management agreement is executed at any time other than the first day of an entire
calendar quarter or month. Fees for an entire calendar quarter shall be calculated by multiplying the value
of the client’s account at the end of each calendar quarter by one-fourth of the annual fee as specified in
the agreement. Monthly fees shall be calculated my multiplying the value of the client’s account at the
end or beginning of the month by 1/12th of the annual fee as specified in the agreement and are not
charged on the basis of a share of capital gains upon, or capital appreciation of, the funds, or any portion
of the funds of an advisory client.
IFS does not have physical access to customer funds and securities. Neither we, nor any other supervised
persons accepts compensation for the sale of securities, including asset-based sales charges or service
fees, from the sale of mutual funds for IA accounts.
On an annualized basis, our fixed fees for non-retirement plan accounts portfolio management services
are not based on account AUM, but are negotiable with a maximum of 150 basis points. One hundred
basis points is the equivalent of 1%.
As indicated on page 5 Item 4 IFS participates in wrap fee programs. IFS receives a percentage of the
wrap fee charged. The percentage IFS receives varies based on the wrap fee firm employed.

5C. Other Fees and Expenses
As part of our investment advisory services to you, we may invest, or recommend that you invest, in
mutual funds and exchange traded funds. The fees that you pay to our firm for investment advisory
services are separate and distinct from the fees and expenses charged by mutual funds or ETF’s
(described in each fund’s prospectus) to their shareholders. These fees will generally include a
management fee and other fund expenses. You will also incur transaction charges and/or brokerage fees
when purchasing or selling securities.

Distributions - $75
Loans - $50 set up fee. $50 Annual Loan Maintenance Fee
Qualified Domestic Relations Order - $250
5C. Advance Payment of Fees
Please review Item 5B. Methods of Payment on page 7 in regard to advance payment of fees
5D. Supervised Persons Compensation for Securities Sales
Charges and fees are typically imposed by the broker-dealer or custodian through whom your account
transactions are executed. We do not share in any portion of the brokerage fees/transaction charges
imposed by the broker-dealer or custodian. Neither we, nor any other supervised persons accepts
compensation for the sale of securities including asset-based sales charges or service fees from the sale of
mutual funds. To fully understand the total cost you will incur, you should review all the fees charged by
mutual funds and exchange funds.

Clients may pay Third-Party Administrator fees or mutual fund expenses in connection with our Advisory
Services. Clients will incur brokerage and other transaction cost.
IFS does not permit commissions to be paid to it’s IA Reps. or broker-dealer reps. for the sale of
securities performed for advisory client accounts. If the firm recommends mutual funds to an investment
advisory client, IFS will recommend no load funds or load waived funds for which there are no
commissions, 12 B-1 fees, or other fees that are paid by the advisory client. Neither IFS or it’s IA Reps.
receive any of these commissions.
Clients have the option to purchase investment products that we recommend through other brokers or
agents that are not affiliated with us. We do not charge commissions or markups to our advisory clients in
add0ition to our advisory fees.
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