Agate Pass Investment Management LLC

Item 5 Fees and Compensation

Agate is compensated based on the assets under management. Our standard fee schedule (annually)
is as follows:

              Assets Under Management                 Annual Fee
              First $0 to $1,000,000                  1.10%
              Next $1,000,001 to $2,000,000           1.00%
              Next $2,000,001 to $5,000,000           0.75%
              $5,000,001 and greater                  0.50%

Our fees are tiered, meaning we charge different rates on different levels of asset tiers, not a single
blended rate. We bill our advisory fees quarterly in advance, calculated based on the asset value of
your account as of the last day of the previous quarter. The specific manner in which we charge
fees is established in our written agreement with you.

Fees are deducted directly from your account by your qualified custodian at our direction.

Our required minimum portfolio size is generally $1,000,000, and the minimum annual fee is
$11,000. However, both portfolio size minimums and fees are negotiable and may be lowered in
certain circumstances.

When we receive new assets or new accounts, fees for portfolio management services will be
prorated accordingly for that quarter’s billing cycle.

        Other Fees and Expenses

All fees paid to Agate are separate and distinct from the fees and expenses charged by third parties.
In addition to our advisory fees, clients are responsible for other fees and expenses in their account
including mutual fund fees, brokerage commissions, stock transfer fees, retirement account fees,
and other similar charges incurred in connection with your custodian holding your account and
executing transactions in your account. Mutual fund fees will generally include a management fee
and other expenses. If the fund also imposes a sales charge, a client could pay an initial or deferred
sales charge. Please refer to the section below on Brokerage Practices for further discussion on
broker-dealer/custodial costs.

If we execute transactions away from your chosen broker-dealer/custodian, we will attempt to
negotiate commissions equal to or less than what you would pay had we executed such transactions
at your custodian. We may instead capture a cost savings in execution price rather than the
transaction cost directly. We will only execute transactions at another broker-dealer/custodian if
we believe it in your best interest and in-line with our best execution obligations.

        Termination of Services

Clients may terminate our services at any time after that by providing written notice to us. Any paid
but unearned fees will be promptly refunded to the client. The unearned portion of fees will be
determined by the number of days left in the quarter as a percent of the total number of days in a
quarter.

Item 7 Types of Clients

Agate manages portfolios for individuals, trusts, foundations and endowments. The minimum
portfolio size is generally $1,000,000 of investable assets. This minimum is negotiable in certain
circumstances.