van der Noord Financial Advisors Inc

Item 5 - Fees and Compensation

General Fee Information
Fees paid to VFA are exclusive of all custodial and transaction costs paid to the client’s custodian,
brokers or other third-party consultants. Please see Item 12 – Brokerage Practices for additional
information. Fees paid to VFA are also separate and distinct from the fees and expenses charged by
mutual funds, ETFs (exchange traded funds) or other investment pools to their shareholders
(generally including a management fee and fund expenses, as described in each fund’s prospectus or
offering materials). The client should review all fees charged by funds, brokers, VFA and others to
fully understand the total amount of fees paid by the client for investment and financial-related
services.

Financial Advisory Services Fees
Ongoing financial advisory services are generally provided in conjunction with portfolio
management. Fees applicable to these ongoing services are set forth in the table below in Portfolio
Management and Ongoing Financial Advisory Fees and are assessed as a single blended fee.

In limited instances, clients may retain VFA for a one-time project more suited to an hourly rate. In
such a circumstance, an hourly rate of $250 is billed in fifteen-minute increments. VFA will make a
good faith estimate of the time needed to accomplish the agreed upon project and will notify the client
if actual fee will exceed the estimate by more than 20% as measured in hours. Hourly fees are due
upon conclusion of the project.

Portfolio Management and Ongoing Financial Advisory Fees
The annual fee schedule, based on a percentage of assets under management, is as follows:

          Investable        Financial          Investment           Total         Blended
            Assets         Advisory Fee      Management Fee                       Fee Rate
        First $500,000         0.95%              0.35%             1.30%          1.30%
        Next $500,000          0.85%              0.35%             1.20%          1.25%
        Next $1million         0.75%              0.35%             1.10%          1.18%
        Next $250,000          0.25%              0.35%             0.60%          1.12%
        >$2,250,000            0.00%              0.00%             0.00%          n/a
        $4,000,000             0.00%              0.00%             0.00%          0.63%
        $6,000,000             0.00%              0.00%             0.00%          0.42%
        $8,000,000             0.00%              0.00%             0.00%          0.32%

There is no minimum annual fee for any account.

Portfolio management and ongoing financial advisory fees are generally payable quarterly, in
advance. If management begins after the start of a quarter, fees will be prorated accordingly. Clients
may make additions or withdrawals to the portfolio at any time. Additional assets received into the
portfolio after it is opened may be charged a pro rata fee based upon the number of days remaining
in the quarter. Clients may withdraw assets upon notice to the VFA, subject to the usual and
customary securities settlement procedures. No fee adjustments will be made for partial withdrawals
within a billing period. With client authorization and unless other arrangements are made, fees are
normally debited directly from client account(s).

Clients may elect to solely receive portfolio management services and forego financial advisory
services. However, the blended fee will not be reduced by the limitation of the scope of VFA’s services.
The client may terminate the Financial Advisory and Investment Management Agreement
(“Agreement”) with VFA within 5 days without penalty. Thereafter, either VFA or the client may
terminate their Agreement at any time, subject to any written notice requirements in the Agreement.
In the event of termination, any paid but unearned asset-based fees will be promptly refunded to the
client based on the number of days that the account was managed, and any fees due to VFA from the
client will be invoiced or deducted from the client’s account prior to termination.

Service Level Fees
As noted in Item 4 above, VFA’s services are offered under BASIC, PRO and CONCIERGE
arrangements. Subject to certain asset minimums, clients may elect to receive additional “concierge”
and other enhanced services coupled with VFA’s standard financial advisory and investment
management services. In addition to portfolio management and ongoing financial advisory asset-
based fees, clients that select the CONCIERGE arrangement will pay an initial and ongoing annual
retainer fee.1 The retainer fee is charged quarterly, in advance. Clients are provided a fee invoice
which is payable upon receipt. Should the Agreement be terminated, the retainer fee will not be
prorated for any remaining days in the quarter.

BASIC Level - Clients engaging VFA at the BASIC level will pay the Portfolio Management and Ongoing
Financial Advisory Fees set forth in the table above. The minimum level of investable assets for this
service level is $500,000.

PRO Level - Clients engaging VFA at the PRO level will pay the Portfolio Management and Ongoing
Financial Advisory Fees set forth in the table above. Clients will also receive an annual audit of their
plan of record if it is greater than twelve (12) months old. The minimum level of investable assets
for this service level is $750,000.

CONCIERGE Level - Clients engaging VFA at the CONCIERGE level will pay the Portfolio Management
and Ongoing Financial Advisory Fees set forth in the table above. The initial retainer fee for this service
is $5,000, with an annual retainer of $2,000 for subsequent years. The minimum level of investable
assets for this service level is $1,000,000.

Retirement Plan Advisory Services and Held Away Account Fees
The annual fee schedule, based on a percentage of assets under management, is as follows:
                Account Assets                      Annual Fee
...

Item 7 - Types of Clients

VFA serves individuals, high net worth individuals and pension and profit-sharing plans. With some
exceptions, the minimum portfolio value eligible for portfolio management services is $500,000. The
minimum portfolio value for PRO level service is $750,000 and $1 million for CONCIERGE service.
There is no minimum annual fee for any account.