Stairway Partners LLC

Item 5           Fees and Compensation

Our Investment Management Fees

Stairway does not receive compensation directly or indirectly from any source other than the fees
paid to us by our clients. All our clients’ assets are maintained in accounts at unaffiliated qualified
custodians. This means that Stairway does not have custody of client assets unless authorized in
writing by the client and, even then, only to deduct the quarterly investment advisory fees. Clients
can elect to be billed for quarterly fees rather than having the fees deducted from their accounts.

Our annualized fees are noted in the table below labeled "Fee Schedule". The specific way fees
are charged by Stairway is established in the Investment Advisory Agreement. Clients most often
are billed quarterly in advance but can elect to be billed in arrears. Fees begin to accrue at the
time Stairway begins managing an account. Fees are calculated based on the total market value
of the assets of the account at that time and, if authorized by the client, are deducted by Stairway
from the client’s custodial account.

                                           Fee Schedule

         Assets Under Management                            Annual Rate
                First $3 million                              0.75%
                $3 – 10 million                               0.50%
                Over $10 million                              0.30%

The fee rate applied to a portfolio is computed based on the weighted average of the asset
amount in each rate bracket. For example, a client with $5 million in assets under management
would pay 0.75% on the first $3 million and 0.50% on the next $2 million, making their weighted
average annual fee rate 0.65%. When a client has multiple portfolios managed by Stairway, the
fee amount will be based on the combined market value of all the portfolios. Stairway may
negotiate client fee arrangements for accounts greater than $25 million depending on the nature
of the engagement and has historically done so for large institutional clients.

Either the client or Stairway can terminate the relationship on 30 days prior written notice.
Accounts initiated or terminated during a calendar quarter will be charged a prorated fee. Upon
termination of any account, any prepaid, unearned fees will be promptly refunded, and any
earned, unpaid fees will be due and payable.

Similar advisory services may be available from other advisors at a lower cost. Stairway's fees
are exclusive of, and in addition to, brokerage commissions, transaction fees, and other related
costs and expenses which are assessed by a broker or custodian and are incurred by the client.

Stairway does not utilize “soft dollars” or other similar forms of compensation from third parties.
We do not receive 12(b)-1 fees from mutual funds or any portion of the commissions, fees, and
costs that clients pay to a broker or custodian. Please see Item 12 for a detailed summary of our

brokerage practices including the factors that Stairway considers in selecting executing brokers
and determining the reasonableness of their commission charges.

Our Non-Discretionary Institutional Advisory Services Fees

The fees for our non-discretionary advisory services are individually negotiated and billed on a
retainer basis.

Item 7          Types of Clients

Stairway provides discretionary investment management services primarily to Taft-Hartley
pension plans, foundations, charitable organizations, institutional clients, and high net worth
individuals. To open an account, we generally require a client to have a minimum of $1,000,000
in assets to be managed by the firm. We may make exceptions to the foregoing at our discretion
and have historically done so for employees of the firm.