Auxano Advisors LLC

Item 5: Fees and Compensation

Auxano bases its fees on a percentage of assets under management.

Compensation – Family Office Services
Auxano’s fee schedule starts at 1.00% and declines thereafter based upon the amount of assets
the client has managed by the Firm, as outlined in the client agreement.

Compensation – Investment Advisory Services
For Clients with $1 million or more, Auxano’s fee schedule starts at 1.00% and declines
thereafter based upon the amount of assets the client has managed by the Firm, as outlined in
the client agreement. For Clients with less than $1 million, the fee schedule starts at 1.25% and
declines thereafter based upon the amount of assets the client has managed by the Firm.

Compensation – Financial Planning
As noted in Item 4, Auxano does not charge separately for financial planning services.

Compensation – Other Investments – Independent Managers / Private Funds
In most instances, Auxano will receive its standard management fee on the overall client
portfolio. In addition, advisors to the Private Funds will receive management and/or
performance fees as disclosed in the separate investment management agreement or private
placement memoranda.

As outlined in Item 4, Advisory Business, Auxano may utilize the services of a third-party
investment manager, selected by Auxano, based on your investment objectives and needs. In
addition to Auxano’s fees set forth in your Agreement, you will also pay for the fees charged by
such investment manager. These annual fees can range between 0.25% and 0.60%, based on
the individual third-party investment manager, on the amount(s) invested with each third-party
investment manager. Auxano will provide notice if it wishes to engage such advisors and will
ask you to execute any necessary agreements, as applicable.

Compensation – Other Services
As noted in Item 4, Auxano has a consulting arrangement with Blue Kayak Partners, LLC. Auxano
compensates Blue Kayak Partners, LLC directly for consulting services provided to the Firm.
Compensation received by Blue Kayak Partners, LLC does not result in higher fees for Auxano
clients.

Calculation and Payment
The specific manner in which fees are charged by Auxano is established in a client’s written
agreement with Auxano. Auxano will generally calculate fees in arrears each calendar quarter.
Clients may also elect to be invoiced directly for fees or to authorize Auxano to directly debit
fees from client accounts.

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.

Termination of Agreement
A client may terminate any of the aforementioned agreements at any time by notifying Auxano
in writing and paying the rate for the time spent on the investment advisory engagement prior
to notification of termination. If the client made an advance payment, Auxano will refund any
unearned portion of the advance payment.

Cash Balances
Some of your assets may be held as cash and remain uninvested. Holding a portion of your
assets in cash and cash alternatives, i.e., money market fund shares, may be based on your
desire to have an allocation to cash as an asset class, to support a phased market entrance
strategy, to facilitate transaction execution, to have available funds for withdrawal needs or to
pay fees or to provide for asset protection during periods of volatile market conditions. Your
cash and cash equivalents will be subject to our investment advisory fees unless otherwise
agreed upon. You may experience negative performance on the cash portion of your portfolio if
the investment advisory fees charged are higher than the returns you receive from your cash.

Retirement Plan Rollover Recommendations
As part of our investment advisory services to our clients, we may recommend that clients roll
assets from their employer’s retirement plan, such as a 401(k), 457, or ERISA 403(b) account
(collectively, a “Plan Account”), to an individual retirement account, such as a SIMPLE IRA, SEP
IRA, Traditional IRA, or Roth IRA (collectively, an “IRA Account”) that we will advise on the
client’s behalf. We may also recommend rollovers from IRA Accounts to Plan Accounts, from
Plan Accounts to Plan Accounts, and from IRA Accounts to IRA Accounts.

If the client elects to roll the assets to an IRA that is subject to our advisement, we will charge
the client an asset-based fee as set forth in the advisory agreement the client executed with our
firm. This creates a conflict of interest because it creates a financial incentive for our firm to
recommend the rollover to the client (i.e., receipt of additional fee-based compensation).
Clients are under no obligation, contractually or otherwise, to complete the rollover. Moreover,
if clients do complete the rollover, clients are under no obligation to have the assets in an IRA
advised on by our firm. Due to the foregoing conflict of interest, when we make rollover
recommendations, we operate under a special rule that requires us to act in our clients’ best
interests and not put our interests ahead of our clients’.

Under this special rule’s provisions, we must:

   •   meet a professional standard of care when making investment recommendations (give
       prudent advice);
   •   never put our financial interests ahead of our clients’ when making recommendations
       (give loyal advice);
   •   avoid misleading statements about conflicts of interest, fees, and investments;

   •    follow policies and procedures designed to ensure that we give advice that is in our
        clients’ best interests;
   •    charge no more than a reasonable fee for our services; and
   •    give clients basic information about conflicts of interest.

Many employers permit former employees to keep their retirement assets in their company
...

Types of Clients
As described in Item 4 above, Auxano provides investment advisory services to individuals, high
net worth individuals, pension and profit-sharing plans, trusts, estates, charitable organizations,
and corporations.

Account Minimums
Auxano requires a minimum account of $1,000,000 for Investment Advisory clients. This
minimum may be negotiable under certain circumstances. Auxano may group certain related
client accounts for the purposes of achieving the minimum account size.