The Pines Wealth Management LLC

Item 5 – Fees and Compensation

The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into a written
agreement with the Advisor.

A. Fees for Advisory Services
Wealth Management Services
Wealth management fees are paid monthly, advance of each month, pursuant to the terms of the wealth
management agreement. Wealth management fees are based on the market value of assets under management at
the end of the prior month. Wealth management fees range up to 1.50% based on the following tiered fee schedule:

                                              The Pines Wealth Management, LLC
                                    325 W. Pennsylvania Ave. Ste E, Southern Pines, NC 28387
                         Phone: (910) 475-8312 * Fax: (910) 401-1539 | Website: https://thepineswealth.com

                 Assets Under Management ($)                 Annual Rate (%)
                 Up to $499,999                                   1.50%
                 $500,000 to $999,999                             1.30%
                 $1,000,000 to $2,999,999                         1.00%
                 $3,000,000 to $4,999,999                         0.90%
                 $5,000,000 to $9,999,999                         0.80%
                 $10,000,000 t0 $19,999,999                       0.75%
                 $20,000,000 and above                          Negotiable

The wealth management fee in the first month of service is prorated from the inception date of the account[s] to the
end of the first month. Fees may be negotiable at the sole discretion of the Advisor. Certain Clients may be offered
a fixed annual rate or a fixed annual fee or a fee schedule that differs from above. Certain clients may also be
charged additional fixed fees up to $500 for additional out-of-scope services. The Client’s fees will take into
consideration the aggregate assets under management with the Advisor. All securities held in accounts managed
by TPWM will be independently valued by the Custodian. The Advisor will conduct periodic reviews of the
Custodian’s valuation to ensure accurate billing.

Use of Independent Managers
As noted in Item 4, the Advisor may implement all or a portion of a Client’s investment portfolio utilizing one or more
Independent Managers. To eliminate any conflict of interest, the Advisor does not earn any compensation from an
Independent Manager. The Advisor will only earn its wealth management fee as described above. Independent
Managers typically do not offer any fee discounts but may have a breakpoint schedule which will reduce the fee
with an increased level of assets placed under management with an Independent Manager. The Advisor will
allocate a portion of the advisory fee collected to the Independent Manager pursuant to the terms of the executed
agreement between the Advisor and the Independent Manager. If the Client is required to authorize and enter into a
wealth management agreement with an Independent Manage then the terms of such fee arrangements are
included in the Independent Manager’s disclosure brochure and applicable contract[s] with the Independent
Manager. Independent Managers may have a fee billing methodology or billing intervals that differ from the Advisor.
The total blended fee, including the Advisor’s fee and the Independent Manager’s fee, will not exceed 2.00%
annually.

Retirement Plan Advisory Services
Fees for retirement plan advisory services are charged an annual asset-based fee of up to 0.75% and are billed
quarterly in advance, pursuant to the terms of the retirement plan advisory agreement. Retirement plan fees are
based on the market value of assets under management at the end of the prior calendar quarter. Fees may be
negotiable depending on the size and complexity of the Plan.

B. Fee Billing
Wealth Management Services
Wealth management fees are calculated by the Advisor or its delegate and deducted from the Client’s account[s] at
the Custodian. The Advisor shall send an invoice to the Custodian indicating the amount of the fees to be deducted
from the Client’s account[s] at the beginning of the month. The amount due is calculated by applying the monthly
rate (annual rate divided by 12) to the total assets under management with TPWM at the end of the prior month.
Clients will be provided with a statement, at least quarterly, from the Custodian reflecting deduction of the wealth
management fee. Clients are urged to also review and compare the statement provided by the Advisor to the
brokerage statement from the Custodian, as the Custodian does not perform a verification of fees. Clients provide
written authorization permitting advisory fees to be deducted by TPWM to be paid directly from their account[s] held
by the Custodian as part of the wealth management agreement and separate account forms provided by the
Custodian.

Use of Independent Managers
For Client accounts implemented through an Independent Manager, the Client’s overall fees may include TPWM’
wealth management fee (as noted above) plus investment management fees and/or platform fees charged by the
                                             The Pines Wealth Management, LLC
                                   325 W. Pennsylvania Ave. Ste E, Southern Pines, NC 28387
                        Phone: (910) 475-8312 * Fax: (910) 401-1539 | Website: https://thepineswealth.com

Independent Manager[s], as applicable. In certain instances, the Independent Manager or the Advisor may assume
responsibility for calculating the Client’s fees and deduct all fees from the Client’s account[s].

Retirement Plan Advisory Services
Retirement plan advisory fees may be directly invoiced to the Plan Sponsor or deducted from the assets of the
Plan, depending on the terms of the retirement plan advisory agreement.

C. Other Fees and Expenses
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Item 7 – Types of Clients

TPWM offers wealth management services to individuals, high net worth individuals, trusts, estates, charitable
organizations, businesses, and retirement plans. TPWM generally does not impose a minimum relationship size.