Tumwater Wealth Management LLC

Item 5: Fees and Compensation

A. Fee Schedule

TWM provides portfolio management services for an annual fee based on the market
value of the aggregate client assets held under management or commonly termed as
household accounts. The annual investment advisory fee charged ranges up to a
maximum of 1.20% of the assets held in the account. TWM may also offer comprehensive
Financial Planning fee of no more than $299 per month and investment management only
fee of no more than 0.60% annually, for clients whose Household account values are under
$500,000.

Portfolio Management Fees

The portfolio management fee is calculated using the value of the assets in the Account
on the last business day of the prior billing period.

Any cash flows greater than $30,000 in or out of the account(s), including new account(s),
will be pro-rated and paid on the following quarterly billing.

These fees are generally negotiable and the final fee schedule will be memorialized in the
client’s advisory agreement. Clients may terminate the agreement without penalty for a
full refund of TWM's fees within five business days of signing the Investment Advisory
Contract. Thereafter, clients may terminate the Investment Advisory Contract generally
with 30 days' written notice.

Comprehensive Financial Planning Fees

The rate for creating comprehensive client financial plans is $3,588 annually. The fees are
generally negotiable and the final fee schedule will be attached as Exhibit II of the
Financial Planning Agreement. The first contract will be for a period of one year, after
which it will transition to a month-by-month contract that can be terminated without
penalty at any time.

TWM offers financial planning services for no additional fee to on-going portfolio
management clients with assets over $500,000.

Clients may terminate the agreement without penalty, for full refund of TWM’s fees,
within five business days of signing the Financial Planning Agreement. Thereafter, clients
may terminate the Financial Planning Agreement upon written notice.

Pension Consulting Services Fees

Asset-Based Fees for Pension Consulting

        Total Assets Under Management         Annual Fee
        All Assets                            A Maximum of 0.875%

Fees will be paid as outlined in the service agreement with the record keeper.

These fees are generally negotiable, and the final fee schedule will be memorialized in the
client’s advisory agreement.

Fixed Fees for Pension Consulting

The rate for pension consulting services is between $1,500 and $10,000. These fees are
negotiable.

Clients may terminate the agreement without penalty for a full refund of TWM's fees
within five business days of signing the Investment Advisory Contract. Thereafter, clients
may terminate the pension consulting agreement generally with 30 days' written notice.
TWM bills based on the balance on the first day of the billing period.

B. Payment of Fees

Payment of Portfolio Management Fees

Asset-based portfolio management fees are withdrawn directly from the client's accounts
with client's written authorization on a quarterly basis. Fees are paid in advance.

Payment of Comprehensive Financial Planning Fees

Fixed Financial Planning fees are withdrawn directly from the client's bank or credit card
accounts with client's written authorization on a monthly basis. Fees are paid in advance.

As mentioned previously, financial planning for clients with $500,000 or more in portfolio
management assets are not charged for financial planning services.

Payment of Pension Consulting Fees

Asset-based pension consulting fees are withdrawn directly from the client's accounts
with client's written authorization on a quarterly basis, or may be invoiced and billed
directly to the client on a quarterly basis. Clients may select the method in which they are
billed. Fees are paid in arrears.

Fixed fees for pension consulting are paid via check. Fees are paid 50% in advance and
50% upon completion.

C. Client Responsibility For Third Party Fees

Clients are responsible for the payment of all third party fees (i.e. custodian fees,
brokerage fees, mutual fund fees, transaction fees, etc.). Those fees are separate and
distinct from the fees and expenses charged by TWM. Please see Item 12 of this brochure
regarding broker-dealer/custodian.

D. Prepayment of Fees

TWM collects fees in advance. Refunds for fees paid in advance but not yet earned will be
refunded on a prorated basis and returned within fourteen days to the client via check, or
return deposit back into the client’s account.

For all asset-based fees paid in advance, the fee refunded will be equal to the balance of
the fees collected in advance minus the daily rate* times the number of days elapsed in

       the billing period up to and including the day of termination. (*The daily rate is calculated
       by dividing the annual asset-based fee rate by number of days in the year.)

       Fixed fees that are collected in advance will be refunded based on the prorated amount of
       work completed at the point of termination.

       E. Outside Compensation For the Sale of Securities to Clients

       Neither TWM nor its supervised persons accept any compensation for the sale of
       investment products, including asset-based sales charges or service fees from the sale of
       mutual funds.

Item 7: Types of Clients

TWM generally provides advisory services to the following types of clients:

       ❖      Individuals
       ❖      High-Net-Worth Individuals
       ❖      Pension and Profit Sharing Plans
       ❖      Charitable Organizations
       ❖      Corporations or Business Entities

The account minimum for TWM’s services is a household minimum of $5,000.