Northwest Capital Management Inc

Item 5: Fees and Compensation

We charge fees for our services in one of three ways:
    1. A fee based on the amount of assets in your portfolios;
    2. A fixed dollar amount; or,
    3. An hourly rate.

Most often, our fees are asset-based. We include in our Advisory Agreement a table like the one below
that defines “tiers” of market value and a corresponding advisory fee rate.

Existing Clients (Prior to July 2023)

                         Tiered Market Values                Tiered Fee Rates

                $500,000 or less                                  1.40%

                $500,001 to $3,000,000                            0.90%

                $3,000,001 to $4,000,000                          0.75%

                $4,000,001 to $10,000,000                         0.70%

                Greater than $10,000,001                          0.65%

New Clients (After July 2023)

                Tiered Market Values                               Tiered Fee Rates
                                                                        1.50%
                $500,000 or less
                                                                        1.00%
                $500,001 to $3,000,000
                                                                        0.85%
                $3,000,001 to $4,000,000
                                                                        0.70%
                $4,000,001 to $10,000,000
                                                                        0.65%
                Greater than $10,000,001

The table above reflects our standard fee rates. This schedule or a variation is used in calculating the
advisory fee we will charge you:

    1. We first determine the market value of your account as of the last day of the prior calendar
        quarter. If our first bill for services is for a partial quarter, we can at our option use as the
        market value your portfolio’s average capital base during that partial quarter.
    2. We calculate your portfolio’s market value falling within each tier in the Table.
    3. We then multiply each tier of your portfolio’s market value by its corresponding Tier Fee Rate.
    4. We total the results of each calculation from Step 3 to determine our Annual Advisory Fee.

Your quarterly asset-based payment to us will be one/fourth of the amount calculated in Step 4 above
(subject to any minimums, maximums, or other adjustments in our Advisory Agreement).

Consider this example of our asset-based fee calculation. Assume your portfolio is valued at $2,500,000 at
the end of the prior calendar quarter. We would calculate a blended rate: 1.50% of the first $500,000 of
portfolio value (or $7,500); and 1.00% of the next $2,000,000 of portfolio value (or 20,000); The total of
these calculations is $27,500. One/fourth of $27,500, or $6,875 for the calendar quarter.

Our fees are variable given such criteria as complexity, geographic location, your tenure as a Client, etc.
There are also occasions in which our fees are greater than method described above would compute. This
usually occurs when there is a start-up retirement plan or an unusually large commitment of time to
financial planning is contemplated. In these instances, we can add additional tiers, adjust the dollar
amount of tiers and the corresponding percentages, add a base fee, or impose a minimum fee to cover a
scope of services disproportionate to the dollar value of assets in the portfolio. A maximum fee may also
apply. Our fees are negotiable, including all factors in our fee calculations.

The Annual Advisory Fee for smaller portfolios can be higher as a percentage rate than the rate charged for
larger portfolios. However, larger accounts pay a larger dollar amount of fees. All factors in the calculation
of your fee are spelled out clearly in our Advisory Agreement.

Fees for institutional Clients (retirement plans, foundations, and endowments) are charged an asset-based
fee, a flat fee retainer, a project fee, or an hourly rate. The methodology of compensation varies based
upon the Client and the scope of engagement.

We bill the annual advisory fee on a quarterly basis and in advance, at the start of the calendar quarter.
Fees are based on the value of the account on the last business day of the previous quarter. If asset
management services are commenced in the middle of a billing period, the prorated fee for the initial
billing period is billed in arrears at the same time as the next full billing period’s fee is billed. If a deposit
more than $1,000 occurs during a billing period after the fee calculation, the fee for the billing period will
be recalculated at the end of the billing period and NWCM will bill Client a second fee pro-rata, in arrears,
on the additional deposits. If a withdrawal more than $1,000 occurs during a billing period after the fee
calculation, the fee for that billing period will be recalculated at the end of the billing period and Client will
be refunded the pro-rate fee that was attributable to the amount of the withdrawal. You can elect to have
the quarterly fee charged to one account, or split between other accounts, or you can elect to pay us by
check. We prefer to charge your accounts directly. The Custodian will send client statements at least
quarterly, showing all payouts from the account including the advisory fee, if deducted from the account.

Fees can be deducted from your investment account(s). Our Advisory Agreement with you—and the
custodial agreements you will sign—authorize us to submit for payment of our fees directly to the
custodian. The custodian debits the fees from your account(s) and sends those amounts to us. You may, if
preferred, pay our quarterly fees by check. In such cases, we will send you an invoice. If you fail to pay this
invoice, our Advisory Agreements authorizes us to deduct delinquent fees.
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Item 7: Types of Clients

We provide services to Private Clients (individual investors), Institutions, local Government and Agencies,
and Retirement Plan Sponsors. Our business model prefers Clients with large portfolios, but we provide
services to individuals with small account balances. Often these individuals are the family members of
long-established Clients or the participant of retirement plans for whom we provide participant education.

We will regularly take on Clients comprising “start-up” retirement plans. From our experience, small
retirement plans often grow into large retirement plans. We are happy to begin a relationship with you at
the inception of the Plan.

Similarly, we have established advisory relationships with Private Clients just getting started in their
careers. If an individual will regularly contribute additional money into their investment account, we
enthusiastically provide advisory services to that Private Client. Happily, many such accounts have grown
into sizeable portfolios.