Daniels & Erickson Financial Advisors LLC

Fees and Compensation - Item 5

Daniels & Erickson charges fees based on 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 Daniels
& Erickson these fees are negotiable.

Portfolio Management Services
If you decide to engage Daniels & Erickson 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*
        First   $1,000,000                                           0.75%
        Next $1,000,000                                              0.65%
        Next $1,000,000                                              0.50%
        Next $1,000,000                                              0.40%
        Next $1,000,000                                              0.35%
        Over $5,000,000                                              Negotiable

*Other fee payment arrangements may be negotiated on a case by case basis. The exact fee payable by
the client will be clearly set forth in the agreement for services signed by the Firm and the client. Fees
charged by sub advisers are separate from and in addition to the fees charged by our firm.

Daniels & Erickson allows related accounts 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.
Daniels & Erickson extends this option to all accounts residing in the same household and certain members
of the same family.

Fees are billed quarterly, in advance, and are based on the value of your portfolio at the end of the
preceding quarter. The custodian holding your account will deduct the fees directly from your account.
The custodian will usually deduct from a designated account to facilitate billing. The client must consent
in advance to direct debiting of their account.

Daniels & Erickson Financial Advisors, LLC
Form ADV Part 2A

If you choose to have Daniels & Erickson’s fee deducted directly from your account, you must provide
written authorization. The qualified custodian holding your funds and securities will send you an account
statement at least quarterly. This statement will detail account activity. Please review each statement for
accuracy. Daniels & Erickson 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.

At the inception of investment management services, the first quarter’s fees will be calculated on a pro-
rata basis. The Advisory Agreement between Daniels & Erickson and the client will continue in effect until
either party terminates the Agreement in accordance with the terms of the Agreement. Daniels &
Erickson’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
Daniels & Erickson may provide its clients with financial planning and consulting services. Daniels &
Erickson will charge an hourly fee of $300 for financial planning services. The fee is negotiable depending
on the nature, complexity, and time involved in providing the client with the requested services. In some
cases, the time/cost could potentially exceed the initial estimate. In such cases, the Firm will notify the
client and may request that the client approve an additional fee.

In limited circumstances, we may use other fee paying arrangements (i.e., fixed fees). Such arrangements
will be clearly set forth in the agreement for services signed by the Firm and the client.

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

Prior to engaging Daniels & Erickson 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, the fee will be payable upon completion of the contracted services. Either party
may terminate the agreement by written notice to the other. Refunds do not apply since fees are payable
in arrears.

Additional Fees and Expenses
The fees Daniels & Erickson charges may be negotiable based on the amount of assets under
management, complexity of client goals and objectives, and level of services rendered. The fees are
charged as described above and are not based on a share of capital gains of the funds of an advisory client.

All fees paid to Daniels & Erickson for investment advisory services are separate and distinct from the fees
and expenses charged by mutual funds or exchange traded funds to their shareholders. These fees and
expenses are described in each fund's prospectus. These fees generally include a management fee, other

Daniels & Erickson Financial Advisors, LLC
Form ADV Part 2A

fund expenses, early redemption fee, and a possible distribution fee. If the fund also imposes sales
charges, a client may pay an initial or deferred sales charge.

A client could invest in a mutual fund directly, without the services of Daniels & Erickson. In that case, the
client would not receive the services provided by Daniels & Erickson which are designed, among other
...

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.

Daniels & Erickson requires a minimum of $1,000,000 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:

    •   Fundamental analysis is a method of evaluating a company or security by attempting to measure
        its intrinsic value. In other words, trying to determine a company’s or a security’s true value by
        looking at all aspects of the business, including both tangible factors (e.g., machinery buildings,
        land, etc.) and intangible factors (e.g., patents, trademarks, “brand” names, etc.). Fundamental
        analysis also involves examining related economic factors (e.g., overall economy and industry
        conditions, etc.), financial factors (e.g., company debt, interest rates, management salaries and
        bonuses, etc.), qualitative factors (e.g., management expertise, industry cycles, labor relations,
        etc.), and quantitative factors (e.g., debt-to-equity and price-to-equity ratios). The end goal of
        performing fundamental analysis is to produce a value that an investor can compare with the
        security's current price in hopes of determining what sort of position to take with that security
        (underpriced = buy, overpriced = sell or short). This method of security analysis is considered to
        be the opposite of technical analysis. Fundamental analysis is about using real data to evaluate a
        security's value. Although most analysts use fundamental analysis to value stocks, this method of
        valuation can be used for just about any type of security.

Daniels & Erickson Financial Advisors, LLC
Form ADV Part 2A

    •   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 trends, at least in the
        short term. It assumes that market psychology influences trading and can predict when stocks will
        rise or fall. Technical trading models are mathematically driven based upon historical data and
        trends of domestic and foreign market trading activity, including various industry and sector
        trading statistics within such markets. Technical trading models, through mathematical
        algorithms, attempt to identify when markets are likely to increase or decrease and identify
        appropriate entry and exit points. The primary risk of technical trading models is that historical
        trends and past performance cannot predict future trends, and there is no assurance that the
        mathematical algorithms employed are designed properly, updated with new data, and can
        accurately predict future market, industry, and sector performance.

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.
    •   Trading – securities are sold within 30 days.

In addition, sub advisers recommended by us may employ the investment strategies listed below:

    •   Covered Options – This 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.
    •   Short Sales – This is the selling of a stock that the seller doesn't own. More specifically, a short
        sale is the sale of a security that isn't owned by the seller, but that is promised to be delivered.

The investment advice provided along with the strategies suggested by Daniels & Erickson 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.

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
taxes, international, political and economic developments, and government, economic or monetary
policies.

Daniels & Erickson Financial Advisors, LLC
Form ADV Part 2A
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