Topsail Wealth Management LLC

Item 5: Fees and Compensation

Investment Advisory Fees

Topsail offers fee-only advisory services. The Firm charges either an annual, flat advisory fee or
charges an advisory fee based on a client’s assets under management. Annual asset-based
advisory fees are calculated based on a tiered annual fee schedule. Each segment of a client’s
assets under management will generally follow the fee schedule below:

While Topsail reserves the right to negotiate a lower annual fee schedule, client relationships
with less than $3 million in asset under management are subject to the minimum fee schedule;
the tiered schedule only applies when assets exceed $3 million.

Client facts, circumstances and needs are considered in determining a negotiated Advisory Fee
schedule. Generally, we will group multiple accounts of a client (or group of related clients)
together for Advisory Fee billing purposes. There are certain circumstances where we would
not group accounts together for billing purposes, but clients are made aware if their accounts
are billed separately. Factors considered in determining the Advisory Fees charged include but
are not limited to the complexity of the client’s portfolio; assets to be placed under
management; anticipated future assets; related accounts; portfolio style; account composition;
or other special circumstances or requirements. Advisory fees are detailed in each client’s
advisory agreement between the Adviser and each client.

Clients pay the Advisory Fee quarterly in advance. The Advisory Fee is deducted directly from
each client’s account, if authorized by the client. Otherwise, clients are invoiced for their
quarterly Advisory Fee. If an account is opened after the start of a quarter, Advisory Fees will
be prorated accordingly. Subsequently, the quarterly Advisory Fee is based on the value of the
assets in the account(s) on the last business day of the previous calendar quarter. If the

investment advisory agreement is terminated before the end of the calendar quarter in which
an Advisory Fee has been paid, the Adviser will provide a refund of the unearned portion of the
Advisory Fee to the client based on the number of days in the quarter prior to the termination
date into an account established through Topsail and its relationships with third party
custodians, or by check if the Firm no longer has access to the custodial account. In addition to
the Advisory Fee, there are additional costs and expenses imposed by companies other than
the Adviser and may include, but may not be limited to, mutual fund and exchange-traded fund
(“ETF”) management fees and expenses, brokerage fees paid to clear transactions, mark-
ups/mark-downs on fixed income trades, annual fees paid for custodial services, spreads paid
to market makers, fees for trades executed away from the custodian, wire transfer fees and
other fees and taxes on brokerage accounts and securities transactions. These charges are
separate and distinct from the fees paid for investment advisory services or other services
provided to clients. If clients are custodied and traded through Schwab or Altruist, Topsail
covers the trading fees for clients. Please refer to Topsail’s Appendix 1 Brochure Supplement
(Item 4).

Wealth Management and Estate Planning Fees

As described in Item 4 above, Topsail also offers other wealth management and estate planning
services, including financial planning, to clients. Fees for these services are determined according to

the scope and complexity of the client’s circumstances and stated objectives. Once Topsail and the
client agree upon the fee, one-quarter of the fee is due at the time an agreement for these types of
services is signed and the remaining fee will be prorated and charged on a monthly or quarterly
basis, in advance, unless otherwise stated in the agreement.

Separate Account Manager Fees

When a Separate Account Manager is utilized, the Manager’s fees will either be included in the
Advisory Fee charged by Topsail or billed to the client separately by the Manager.

Minimum schedule: Relationships with less than $3 million in AUM:
    Minimum annual fee: Lesser of $9,000, or 1%.

Example calculation:
    AUM less than or equal to $900,000 in AUM = 1%
    $900,000 to $3,000,000 = $9,000

Tiered schedule: Relationships exceeding $3 million in AUM:
     0.30% on the first $5 million (up to $5 million in assets)
     0.20% on the next $5 million (up to $10 million in assets)
     0.10% on the next $15 million (up to $25 million in assets)
     0.05% on the assets over $25 million

    Example calculation for a client with $15 million
          0.30% on the first $5 million = $15,000
          0.20% on the next $5 million = $10,000
          0.10% on the next $15 million = $5,000
          0.05% on the assets over $25 million = $0
          For a total advisory fee of $30,000

Retirement Plan Advisory Fees

Topsail charges an annual fee of up to 1% of assets under management for non-discretionary
advisory services to 401(k) retirement plans. The fees are billed quarterly in advance.

Fees for Other Services Offered

Minimum fees for bookkeeping services are $250 per month. Fees for trustee services are available
for a minimum fee of $10,000 per year. Bookkeeping and trustee services and fees are stated in the
client’s services agreement. Fees are billed directly to the client. These charges are separate and
distinct from the fees paid for investment advisory services.

Fee Billing Methods

Topsail will bill you directly for services provided, or you may authorize us to have your fees
deducted directly from your account. This authorization will be included in the advisory
agreement, or other services agreement, and custodian account opening documents that you
will execute to engage our services, as applicable.

Your custodian will provide you with statements that show the amount of any fees paid directly
...

Types of Clients

Topsail provides advisory services primarily to high-net-worth individuals and their families,
including their trusts, estates, and retirement accounts and retirement plans. We also
provide services to corporations, business entities and family foundations.

Topsail generally requires a minimum account size of $1 million for investment advisory services,
though we may accept smaller accounts at our discretion.