Mainsail Financial Group LLC

Item 5 Fees and Compensation
How You're Charged and How We're Compensated
Clients who elect to receive portfolio management services through one or more of Mainsail Financial
Group's asset management programs will generally pay Mainsail for those services with an annual
asset management fee based on a percentage of assets under management, including cash and
money market positions. The maximum account management fee that can be charged in any of our
firm's managed account program is listed in the fee schedule below. Clients are urged to carefully
review and discuss the contents of this Brochure with their advisor, including descriptions of the
various programs and services offered, the fees and charges clients will pay, how Mainsail is
compensated, and the conflicts of interest that exist between the client and Mainsail in respect to each
program or service offered, to determine the most appropriate programs or services for your specific
needs.

The annual account management fee is payable monthly in advance and is computed on a per day
rate multiplied by the number of days in the month based on the AUM on the last business day of the
previous calendar month. In limited circumstances, estimated month or quarter end values of alternative
investments provided by the product issuer may be used when calculating billable AUM. Please refer
to the respective program description in this Brochure or to the respective client agreement for specific
information about the maximum fee allowed, the varying fee schedules of each program, and the
methods of fee billing for the program(s) you select.

Mainsail may waive a particular fee, whether on an ongoing or a one-time basis, in its sole discretion.
In the event a client terminates an advisory agreement with Mainsail, any unearned fees resulting from

 payments made by clients in advance will be refunded to the client. Likewise, in the event Mainsail
 bills clients in arrears for services that have already been rendered, Mainsail will prorate such fees up
 to the termination date (with written request of client) of the advisory agreement.

 Our standard fee schedule for portfolio management is as follows:

 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 schedules:

 Flat Fee Schedule - For Household Values under $500,000:
 A flat fee schedule looks at the account value and compares it to a set fee schedule.

                                          Annual Fee Schedule

             Assets Under Management                                       Annual Fee
                   $0 - $249,999                                             1.50%
               $250,000 - $499,999                                           1.25%

 For example, assume that the account value at the end of the billing period is $300,000. In this
 hypothetical example, and assuming an advanced monthly billing cycle (31 days in this example) is
 applied, the account for the upcoming month would be assessed as follows: The $300,000 account
 value falls within the fee schedule value range of $250,001 to $499,999, which corresponds with a fee
 rate of 1.25%.

 The math:

 $300,000 x 1.25% = $3,750 / 365 days = $10.27 per day x 31 days in the following month = $318.37
 advance monthly account fee.

 Blended/Tiered Fee Schedule – For Household Accounts $500,000 and above:
 A blended or tiered schedule identifies specific portions of the account value to be charged at different
 fee rates. The total value of the account is compared against the schedule and, based on the account
 size, the different fee rates are blended to determine the total account fee for that period.

                                          Annual Fee Schedule
                   Assets Under                                              Annual
                   Management                                                  Fee
                    $0    $1,000,000                                          1.1%
              $1,000,000 - $2,000,000                                         .90%
              $2,000,000 - $4,000,000                                         .70%
              $4,000,000 - $7,000,000                                         .65%
                   $7,000,000 - +                                             .55%

For example, let’s assume the account value at the end of the billing period is $3,000,000 and assume
an advanced monthly billing cycle is applied (for a 30 day month).
The math:

First         $1,000,000 x 1.1% = $11,000; $11,000 / 365 = $30.14; $30.14 x 30=$904.20
Second        $1,000,000 x .9% = $9,000; $9,000 / 365 = $24.65; $24.65 x 30=$739.50
Third         $1,000,000 x .7% = $7,000; $7,000 / 365 = $19.17; $19.17 x 30=$575.10

Each of the different fee rate amounts is added together to determine the total monthly fee.
$904.20+$739.50+$575.10 = $2,218.80 advance monthly account fee and a blended annual fee rate
of .88%

If the portfolio management agreement is executed at any time other than the first day of a calendar
month, our fees will apply on a pro rata basis for the first month, which means that the advisory fee is
payable in proportion to the number of days in the month for which you are a client. Our annual
portfolio management fee is billed and payable, monthly in advance, based on the aggregate
household balance at the end of the prior month. 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
...

Item 7 Types of Clients
Mainsail Financial Group generally provides advisory services to the following types of clients:

    •   Individuals (other than high net worth individuals)
    •   High net worth individuals
    •   Pension and profit-sharing plans
    •   Trusts, estates, and charitable organizations
    •   Corporations or other businesses not listed above

Mainsail Financial Group's managed account programs generally require clients to meet certain
account minimums. In some cases, account balances may be combined at the household level to
satisfy the account minimum. The following is a description of the account minimums in the various
managed accounts available through Mainsail Financial Group:

Mainsail Financial Group typically has a minimum investable asset requirement of $500,000. This
minimum is negotiable and may be waived.