Old North State Wealth Management LLC

Fees and Compensation - Item 5

Old North charges a percentage of assets under management, hourly charges, fixed fees (not including
subscription fees) or other fees for its advisory services. At the sole discretion of Old North, these fees
are negotiable.

Portfolio Management Services
If you decide to engage Old North for portfolio management services, we will charge an annual fee based
upon a percentage of the market value of the assets being managed. Our fee for portfolio/asset
management services is set forth in the following fee schedule:

        Assets Under Management                                  Annual Fee*
        Up to $1,000,000                                           1.25%
        $1,000,001 - $2,000,000                                    1.00%
        $2,000,001 - $5,000,000                                    0.70%
        Over $5,000,000                                            0.50%

*Certain clients who maintained pre-existing relationships with IARs, prior to their association with the
Firm may pay a different fee to Old North. The final fee will be clearly set forth in the agreement for
services signed by the Firm and the Client.

Old North allows the accounts for members of the same household to be combined for fee paying
purposes. We combine the account valuations to assist you in meeting fee breakpoints and therefore
lowering the overall fee level. Old North extends this option to all accounts residing in the same
household.

Old North will either bill you directly for payment of our fees or the fees will be deducted from your
account. Fees are billed quarterly, in advance and are based on the value of your portfolio at the end of
the preceding quarter. Payment in full is expected upon invoice presentation. Fees are usually deducted
from a designated client asset account to facilitate billing. The client must consent in advance to direct
debiting of their account.

If you choose to have Old North’s fee deducted directly from your account, you must provide
authorization. The qualified custodian holding your funds and securities will send you an account
statement quarterly. This statement will detail account activity. Please review each statement for
accuracy. Old North will also receive a copy of your account statements from the custodian.

Our annual fee is exclusive of, and in addition to brokerage commissions, transaction fees, and other
related costs and expenses which will be incurred by the client. However, we will not receive any portion
of the commissions, fees, and costs. Please see Item 12 – Brokerage Practices for further information on
brokerage and transaction costs.

Old North State Wealth Management, LLC
Form ADV Part 2A

At the inception of investment management services, the first quarter’s fees will be calculated on a pro-
rata basis. The Advisory Agreement between Old North and the client will continue in effect until either
party terminates the Agreement in accordance with the terms of the Agreement. Old North’s annual fee
will be pro-rated through the date of termination and any remaining balance shall be charged or refunded
to the client, as appropriate, in a timely manner.

Financial Planning Services
Old North may provide its clients with financial planning and consulting services. Old North will charge a
fixed fee and/or hourly fee for consulting services. Our consulting fees are negotiable. We utilize the
following financial planning fee schedules:

    •   Fixed Fees: Old North will charge a fixed fee that ranges from $500.00 to $2,500.00, for broad
        based planning services. In limited circumstances, the total cost could potentially exceed
        $2,500.00. In such cases, we will notify the client and may request that the client pay an additional
        fee.

    •   Hourly Fees: Old North charges an hourly fee of $100 to $200 for clients who request specific
        services (such as a modular plan or hourly consulting services) and do not desire a broad based
        written financial plan.

If the client engages Old North for additional investment advisory services, Old North may offset all or a
portion of its fees for those services based upon the amount paid for the consulting services.

Prior to engaging Old North to provide consulting services, the client will generally be required to enter
into a written agreement with us. The agreement will set forth the terms and conditions of the
engagement and describe the scope of the services to be provided and the portion of the fee that is due
from the client. Generally, Old North requires one-half of the consulting fee (estimated hourly or fixed)
payable upon entering the written agreement. The balance is generally due upon the completion of the
agreed upon services. Either party may terminate the agreement by written notice to the other. In the
event the client terminates Old North’s consulting services, the balance of Old North’s unearned fees (if
any) shall be refunded to the client.

Third-party adviser (TPAs) Fees
Old North will perform management searches of various independent registered investment advisers for
referral to Old North clients. Old North will share in the fee paid to the TPA. The management fee is
disclosed in the TPA's disclosure documents. These fees may or may not be negotiable. Old North's
compensation may differ depending upon the firm’s individual agreement with each TPA. Old North or its
Associated Persons may have an incentive to recommend one TPA over another TPA with whom it has
less favorable compensation arrangements or other advisory programs offered by TPAs with which it has
no compensation arrangements.

Additional Fees and Expenses
The fees Old North charges may be negotiable based on the amount of assets under management,
complexity of client goals and objectives, and level of services rendered. As described above, the fees are
charged as described and are not based on a share of capital gains of the funds of an advisory client. All
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Types of Clients - Item 7

We offer investment advisory services to individuals, pension and profit sharing plan participants, trusts,
estates, charitable organizations, corporations, and other business entities.

Old North requires a minimum of $500,000 to open and maintain an advisory account. At our sole
discretion we may waive this requirement. This requirement can be met by combining two or more
accounts owned by you or related family members.

                  Methods of Analysis, Investment Strategies and Risk of Loss - Item 8

The following are different methods of analysis that we may use when providing you with investment
advice:

    •   Charting – charting is a technique that attempts to forecast future market moves by studying
        historical data on charts.
    •   Fundamental Analysis – fundamental analysis is a technique that attempts to determine a
        security’s value by focusing on underlying factors that affect a company's actual business and its
        future prospects. The term refers to the analysis of the economic well-being of a financial entity
        as opposed to only its price movements.
    •   Technical Analysis – technical analysis is a technique that relies on the assumption that current
        market data (such as charts of price, volume, and open interest) can help predict future market

Old North State Wealth Management, LLC
Form ADV Part 2A

        trends, at least in the short term. It assumes that market psychology influences trading and can
        predict when stocks will rise or fall.
    •   Cyclical Analysis – cyclical analysis is a technique that looks at cycles, specifically analyzing the way
        prices follow certain patterns and trends.

We may use one or more of the following investment strategies when advising you on investments:

    •   Long Term Purchases – securities held for over a year.
    •   Short Term Purchases – securities held for less than a year.
    •   Covered Options – covered option is a strategy in which an investor writes an option contract
        while at the same time owning an equivalent number of shares of the underlying stock.

The investment advice provided along with the strategies suggested by Old North will vary depending on
each client’s specific financial situation and goals. This brief statement does not disclose all of the risks
and other significant aspects of investing in financial markets. In light of the risks, you should fully
understand the nature of the contractual relationship(s) into which you are entering and the extent of
your exposure to risk. Certain investing strategies may not be suitable for many members of the public.
You should carefully consider whether the strategies employed will be appropriate for you in light of your
experience, objectives, financial resources and other relevant circumstances.

General Investment Risk: All investments come with the risk of losing money. Investing involves
substantial risks, including complete possible loss of principal plus other losses and may not be suitable
for many members of the public. Investments, unlike savings and checking accounts at a bank, are not
insured by the government to protect against market losses. Different market instruments carry different
types and degrees of risk and you should familiarize yourself with the risks involved in the particular
market instruments you intend to invest in.

Exchange Traded Fund (ETF) Risk: ETFs' managers trade fund investments in accordance with fund
investment objectives. While ETFs generally provide diversification, risks can be significantly increased
for funds concentrated in a particular sector of the market, or that primarily invest in small cap or
speculative companies, use leverage (i.e., borrow money) to a significant degree, or concentrate in a
particular type of security (i.e., equities) rather than balancing the fund with different types of securities.
ETFs can be bought and sold throughout the day like stock and their price can fluctuate throughout the
day. During times of extreme market volatility, ETF pricing may lag versus the actual underlying asset
values. This lag usually resolves itself in a short period of time (usually less than one day), however, there
is no guarantee this relationship will always occur.

Inverse ETFs seek to achieve a return that is a multiple of the inverse performance of the underlying index.
An inverse ETF that tracks a particular index, for example, seeks to deliver the inverse of the performance
of that index. For example, a 2x (two times) Inverse ETF seeks to deliver double the opposite of that index’s
performance. To accomplish their objectives, inverse ETFs pursue a range of investment strategies
through the use of swaps, futures contracts, and other derivative instruments.

Long Short Fund Risk: A Long-Short Fund is a mutual fund that holds investments long and, in addition,
sells securities it does not own (short). The goal of a long-short fund is to find some investments that are
anticipated to go up, and, other investments that are anticipated to go down, and invest in both in an
attempt to increase returns. There are risks associated with selling short, including the risk that the Long-

Old North State Wealth Management, LLC
Form ADV Part 2A

Short Fund may have to cover its short position at a higher price than the short price, resulting in a loss.
The Fund's loss on a short sale is potentially unlimited as a loss occurs when the value of a security sold
short increases.

Loss of Value: There can be no assurance that a specific investment will achieve its investment objectives
and past performance should not be seen as a guide to future returns. The value of investments and the
income derived may fall as well as rise and investors may not recoup the original amount invested.
Investments may also be affected by any changes in exchange control regulation, tax laws, withholding
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