SK Advisor Network LLC

Item 5 – Fees and Compensation
Investment Management
sKan’s fee is 1% of the advisory fees charged to the end client by the member firms. This is not a withholding
subject to potential refund. There is an additional withholding used to cover a member firm’s annual pro-rata
cost of using the platform. Fees and costs are withheld quarterly with any excess refunded annually.
sKan withholds a percentage of the member firm’s advisory fees charged to end clients based on one of the
following schedules.

   •   30% of fees withheld in year one, 20% of fees withheld in year two, and 10% of fees withheld in year
       three. Year four and beyond withholding will be negotiable.

   •   20% of fees withheld in year one, 20% of fees withheld in year two, and 20% of fees withheld in year
       three. Year four and beyond withholding will be negotiable.

   •   10% of fees withheld in year one, 20% of fees withheld in year two, and 30% of fees withheld in year
       three. Year four and beyond withholding will be negotiable.

 Disclosure Brochure

Mutual Fund Share Class Disclosures
sKan strives to select the lowest cost share class available; however, certain mutual fund share classes charge a
12b-1 fee that generally amounts to an additional .25% expense ratio or more. The purpose of 12b-1 fees, as
approved by the SEC, are to cover marketing expenses and shareholder services such as support services and
“other expenses” such as legal, accounting and the administrative functions of the custodian. When selecting a
mutual fund, Investment Advisor Representatives have a fiduciary duty to choose the share class that helps
manage the overall fee structure of the account. The entire fee structure includes such fees as the asset
management fee, the expense ratio and ticket charges.

   •   Mutual funds typically offer multiple share classes, including lower-cost share classes that do not charge
       12b-1 fees and are therefore usually less expensive.

   •   sKan will consider investing Client funds in 12b-1 fee-paying share classes even when a lower-cost
       share class is available as appropriate to account for the overall fee structure and tax considerations as
       well as attributes of a fund not available for lesser fees.

Compensation for Sales of Securities
sKan does not receive commission compensation for advisory services.

Industry Professionals
When it is in the best interests of the client, sKan can introduce the services of other professionals for certain
non-investment purposes (i.e., attorneys and accountants). Introductions represent a conflict of interest
because they create a relationship where the other professional has an implied obligation to introduce
potential new clients to sKan.
Additional Compensation
sKan can receive an economic benefit for providing advisory services from sources other than the member
firm. Economic benefits include sales awards and gifts, an occasional meal, as well as entertainment such as
a concert, show or sporting event. Such compensation is not directly related to the advice or services
provided to a particular client, but it does create a conflict of interest that can influence the selection of
services based on the compensation received.

Other Fees and Expenses
Member firms will incur transaction charges for trades executed in their client’s accounts. These transaction fees
are separate from the fees charged by sKan. Member firms will also pay the following separately incurred
expenses, which sKan does not receive any part of: charges imposed directly by a mutual fund, index fund, or
exchange traded fund which shall be disclosed in the fund’s prospectus (i.e., fund management fees and other

 Disclosure Brochure

fund expenses). Mutual funds and other pooled investment products, have two layers of advisory fees: 1. A fee
to the fund manager and other expenses as a shareholder of the fund. 2. Advisory fee with respect to those assets.
Most of the mutual funds available in the program may be purchased directly. Therefore, Clients could generally
avoid the second layer of fees by not using the management services of sKan and by making their own
investment decisions. Further information regarding fees assessed by a mutual fund is available in the
appropriate prospectus.

Termination
A contract between sKan and a member firm can be cancelled at any time with thirty (30) days prior written
notice.

Item 7 – Types of Clients
The sub advisory services offered by sKan are available for other registered investment advisors.