Sky Investment Group LLC

Fees and Compensation
Description
SKY Investment Group LLC bases its fees on a percentage of assets under
management. Clients are billed quarterly, in advance of services, based upon the value
of the assets under management at the end of the quarter.
If a client's contract becomes effective subsequent to the first day of a calendar quarter
or month, or terminates before the last day of a calendar quarter or month, the fee is
determined by applying the foregoing percentage to the applicable portion of such
quarter (such total value being determined as of the last day of the calendar quarter)
and reducing the fee proportionately. SKY Investment Group LLC may, at its discretion,
combine accounts for clients with multiple accounts for purposes of calculating the
appropriate fee.
Fees are negotiable at the discretion of the President or Chief Compliance Officer of
SKY Investment Group LLC.
SKY Investment Group offers investment management services under two (2) general
fee structures detailed below. Depending on the scope and complexity of the
engagement and, in cases where portfolios contain components of each, will generally
reflect a proportional blend of each.
Core Wealth Management

For client relationships involving financial planning, discretion, or other complexity, SKY
charges a tiered asset-based fee at the household level, as follows:
     0.95% annually on the first $2,000,000 of assets under management;
     0.85% annually on the next $3,000,000;
     0.75% annually on the next $5,000,000; and
     0.50% annually on assets over $10,000,000.
Strategic Liquidity
For client mandates of a less complex nature, such as for cash management and
liquidity needs (e.g., Treasury bill ladders, cash management portfolios), SKY charges a
reduced asset-based fee on such strategies calculated as follows:
     0.25% annually on assets greater than $1,000,000 and less than $20,000,000;
     0.20% annually on assets greater than $20,000,000.

Fee Billing
Investment management fees are billed quarterly, in advance meaning that we invoice
your account for the coming quarter based upon the value of the account on the last day
of the most recently completed quarter. Payment in full is deducted from a designated
client account to facilitate billing. The client must consent in advance to direct debiting
of their investment account. In the event that a client discontinues services in the middle
of a quarter, the client is rebated, pro-rata, fees charged but not yet earned.

Other Fees
Custodians may charge transaction fees on purchases or sales of account assets.
These transaction charges are usually small and incidental to the purchase or sale of a
security. Custodians may charge additional account-based fees pursuant to their
agreement with the client.

Expense Ratios
Mutual funds generally charge a fee for their services as investment managers. The
ratio of these fees to assets managed is called an expense ratio. For example, an
expense ratio of 0.50 means that the mutual fund company charges 0.5% for their
services. These fees are in addition to the fees paid by you to SKY Investment Group
LLC
Performance figures quoted by mutual fund companies in various publications are after
their fees have been deducted.

Past Due Accounts and Termination of Agreement
SKY Investment Group LLC reserves the right to stop work on any account that is more
than 90 days overdue. In addition, SKY Investment Group LLC reserves the right to
terminate any agreement where a client has willfully concealed or has refused to
provide pertinent information about financial situations when necessary and appropriate,
in SKY Investment Group LLC’s judgment, to providing proper financial advice.

Types of Clients
     Description
        SKY Investment Group LLC generally provides investment advice to
        individuals, pension and profit sharing plans, trusts, estates, or charitable
        organizations, closely held corporations or business entities.

     Account Minimums
        SKY Investment Group LLC does not impose any minimum for opening an
        investment account.

Methods of Analysis, Investment Strategies and Risk of Loss