Northern Capital Management Inc

Item 5 - Fees and Compensation

A. Compensation for Services and Fee Schedule
Northern Capital is primarily compensated for advisory services by charging a management fee based
on the amount of assets that we manage or advise. This is called our “management fee” or “advisory
fee.” The annual rate is detailed in the Financial Advisory Agreement including any minimum fee that
applies.

Northern Capital is compensated for advisory services for the financial planning only option (available
to new client with WSMA membership) by charging a fixed fee based on the amount of services indicated
by the client. The fixed fee can vary based on the scope and complexity of the financial plan.

The fee schedules vary by client type and service model. Non-standard fee schedules are negotiable
and subject to approval by the Chief Operations Officer.

Northern Capital considers cash (e.g., money market and cash sweep funds) to be an asset class and
includes cash positions in our fee calculation. In times of low interest rate environments, it’s possible
our fee will exceed the yield generated by this asset class. However, when the cash position is held
within a portfolio assigned a Cash Only Investment Objective, the position will not be assessed a fee.

Individual Clients Services Financial Advisory Fee Schedule

Fee Schedule – Standard
Our standard fee schedule for individual clients (individuals, families, corporations, foundations,
endowments) is 1% annually on assets under management up to $3,000,000 and 0.75% thereafter.
Exceptions to the standard rate are as follows:
        The fee schedule for Fixed Annuities is 0.5% annually
        The fee schedule for accounts that are assigned a Pure Preservation Investment Objective
           is 0.5% annually on the first $500,000 of billable assets and 0.0% thereafter. For additional
           information on Investment Objective models see Item 8 – Methods of Analysis Investment
           Strategies and Risk of Loss.
        For portfolios assigned a Cash Only Investment Objective no fee will be assessed.
        The fee schedule for 529 plan accounts is based on the level of asset management services
           our firm provides:
                o Those that are invested using an age-based track where the investments
                    automatically become more conservative over time are not assessed a fee.
                o Those that are invested using a static portfolio where the investments are reviewed
                    and updated periodically by Northern Capital are charged 0.50% annually.

Fee Schedule – Washington State Medical Association (WSMA) membership (new clients only)
Our fee schedule for new clients (after November 6, 2024) with a Washington State Medical Association
membership (WSMA Member) is 0.9% annually on assets under management up to $3,000,000 and
0.675% thereafter. Exceptions to the WSMA Member rate are as follows:
         The fee schedule for Fixed Annuities is 0.45% annually
         The fee schedule for accounts that are assigned a Pure Preservation Investment Objective
           is 0.45% annually on the first $500,000 of billable assets and 0.0% thereafter. For additional
           information on Investment Objective models see Item 8 – Methods of Analysis Investment
           Strategies and Risk of Loss.
         For portfolios assigned a Cash Only Investment Objective no fee will be assessed.
         The fee schedule for 529 plan accounts is based on the level of asset management services
           our firm provides:
           o Those that are invested using an age-based track where the investments automatically
                become more conservative over time are not assessed a fee.

                                                                         Northern Capital Management, Inc. Page 9

            o   Those that are invested using a static portfolio where the investments are reviewed and
                updated periodically by Northern Capital are charged 0.45% annually.

If a client terminates their membership with WSMA or if the Promoter agreement between WSMA and
Northern Capital is terminated, the fee for investment management services will revert to the standard
fee above.

Retirement Plan Client Services Financial Advisory Fee Schedule

Fee Schedule - Standard
Our standard fee schedule for retirement plan clients (401(k), 403(b), Defined Benefit (e.g. Cash Balance),
Profit Sharing, and 457 plans) is an annual rate, tiered with no minimum:
    • 0.50% on the first $1,000,000
    • 0.35% on assets between $1,000,000.01 and $10,000,000
    • 0.20% on assets between $10,000,000.01 and $50,000,000
    • 0.15% thereafter

For Plans Managed by Investment Objective Models the fee will be based on the Investment Objective
assigned. For all Investment Objective models the standard annual rate noted above will apply except
for the following:
     • For portfolios assigned a Pure Preservation Investment Objective the fee schedule is 0.5%
         annually on the first $500,000 of billable assets and 0.0% thereafter.
     • For portfolios assigned a Cash Only Investment Objective no fee will be assessed.

Fee Schedule – Washington State Medical Association (WSMA) membership (new clients only)
Our fee schedule for new clients (after November 6, 2024) with a Washington State Medical Association
membership (WSMA member) is an annual rate, tiered with no minimum:
   • 0.450% on the first $1,000,000 in billable assets;
   • 0.315% on billable assets between $1,000,000.01 and $10,000,000;
   • 0.180% on billable assets between $10,000,000.01 and $50,000,000;
   • 0.135% thereafter with no minimum

For Plans Managed by Investment Objective Models the fee will be based on the Investment Objective
assigned. For all Investment Objective models the WSMA Member annual rate noted above will apply
except for the following:
...

Item 7 - Types of Clients

Northern Capital provides investment advice to the following types of clients:
   • Individuals
   • Trusts
   • Estates
   • Organizations such as corporations, foundations, endowments, and partnerships
   • Defined Contribution Plans such as Profit Sharing, 401(k), 403(b), 457
   • SIMPLE IRA Plans/SEP Plans
   • Defined Benefit Plans (e.g., Cash Balance Plan)

There is no minimum account size for new clients.

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