Skyline Financial Northwest LLC

Item 5: Fees and Compensation

In the world of finance there can be many sources of costs. Fees that SFNW charges come from
two different services; Financial Planning and Investment Management. Because SFNW believes
firmly believes the best client outcomes typically come from upfront planning followed by
ongoing consultation and investment management, we offer significant discounts to our planning
fees to clients that choose to utilize us for ongoing investment management. Please refer to the
Managed Account Fee Structure section below for details.

Financial Planning Fees
For financial planning work, SFNW can charge by the hour or on a fixed price for a fixed scope
basis as agreed to in advance by the client and the advisor. SFNW and its employees and officers
do not receive any compensation either directly or indirectly for recommending specific financial
or insurance products. We are a fee only firm and only receive compensation through the fees we
charge directly to our clients.

                                                 ADDRESS 2121 SW BROADWAY, SUITE 100, PORTLAND, OR 97201
                                                                EMAIL CONTACT@SKYLINEFINANCIALNW.COM
                                                                          WEB SKYLINEFINANCIALNW.COM
   PAGE 7 OF 21                                                                        MAIN 888.739.7369

Fixed fee planning projects are subject to a $4,000 minimum. Proposed fees for fixed scope, fixed
price contracts are determined based on the estimated time required for the financial planning
staff to create the plan and the hourly rate for each staff member. Fees are negotiable. Financial
planning fees are typically paid half at contract signing, and half upon delivery and acceptance of
the final plan.

When financial planning fees are due, the advisor will provide an invoice that contains the fee, the
formula or basis for the fee, the actual calculation of the fee if applicable, and the time period
covered. Fees are payable by check.
A client may terminate a financial planning agreement at any time for any reason. The client must
submit a written termination request at which time all earned planning fees are due and payable.
If the advisory fees are for a “fixed fee” service and the service is incomplete, the charge will be
based on our hourly rate (as of the date of the contract) for time already spent on the service up
to a maximum of the full contracted fee. These rates as of today are:
   •    $100/hour for support staff
   •    $200/hour for non-CFP® advisors
   •    $300/hour for CFP® advisors
For financial planning contracts that are terminated early, the client will receive all advisor
generated work produced up to the date of termination once the final bill has been settled.

Investment Advisory Fees
SFNW is compensated for its services through one, or more of the following methods:
   •   A percentage of assets under management. For specific rates, see the Managed Account
       Fee Structure section below.
   •   Negotiated rates.

                                                ADDRESS 2121 SW BROADWAY, SUITE 100, PORTLAND, OR 97201
                                                               EMAIL CONTACT@SKYLINEFINANCIALNW.COM
                                                                         WEB SKYLINEFINANCIALNW.COM
   PAGE 8 OF 21                                                                       MAIN 888.739.7369

Managed Account Fee Structure
FOR INDIVIDUALS, COUPLES, TRUSTS, AND ESTATES

Account Assets                                                                   Annual Fee
Less than $1,000,000                                                             0.90%4,5
Next $1,000,000                                                                  0.75%6
Next $3,000,000                                                                  0.60%
Over $5,000,000                                                                  0.45%

Advisory fees are charged in arrears monthly based on the average account balance for the
period subject to an annual minimum fee of $4,500 per client. Partial months will be prorated
based on days of service. Clients will receive, in advance, a written invoice showing the custodian,
the fee, the formula used to calculate the fee, and the assets under management on which the
fee was based for the time period covered by the invoice. We recommend clients always compare
the invoice received from SFNW to the account statement(s) received from the third-party
custodian. Fees will be deducted from the account for which the services are provided unless
otherwise arranged at the account set up.
If a client wishes to terminate the advisory service on an account, request for termination must
be in writing. Termination of advisory service will be effective the day of receipt of the request.
Advisory fees will be due for services through that date, and will be immediately payable.
For those clients that opt to have SFNW manage their employer retirement plans, SFNW will
utilize a 3rd party data aggregator and order management system provided by Pontera, Inc.
(pontera.com). Pontera, Inc. charges SFNW 0.30% of assets on their platform per annum for the
service it provides to us. SFNW does not pass on that charge to clients. SFNW will aggregate the
employer retirement plan assets with any other managed assets to calculate our management
fee using the same fee schedule and fee calculation methodology. Fees earned on the employer
plan must be collected from a non-qualified (non-IRA) account that we manage custodied at
Schwab, Interactive Brokers, or Transamerica.

  Minimum account advisory fee of $4,500 per year applies.

  Accounts exceeding $500,000 receive a 50% discount on financial planning services

  Accounts exceeding $1,000,000 receive a 100% discount on financial planning services
...

Item 7: Types of Clients

SFNW provides investment advisory and financial planning services to individuals, small
businesses, trusts, and qualified retirement plans.

Conditions for Managing Accounts
SFNW is committed to helping as many clients as possible without compromising quality of
service. We have made our conditions for potential clients as wide as possible while still keeping
in mind that the business must be profitable to be sustainable. All accounts must meet at least
one of the conditions listed below:
   •   Account assets must exceed $500,000, or
   •   Account can have any asset amount as long as the client has been a client of SFNW
       continuously for the previous 3 years, and met the first condition for at least 2 years, or
   •   Account can have any amount of assets as long as the client is first a financial planning
       services customer, and an arrangement is made by the advisor and the client, or
   •   An individual arrangement is made that is mutually acceptable to both Skyline Financial
       Northwest, LLC and the investor. Such an arrangement will be in writing and signed by
       both parties.
Regardless of account balance, all clients are subject to the $4,500 annual minimum asset charge.