Cerro Pacific Wealth Advisors LLC

Item 5: Fees & Compensation
Compensation for Our Advisory Services

Comprehensive Portfolio Management:

                              Assets Under Management              Annual %
                               First   $ 2,000,000                  1.00%
                               Next    $ 1,500,000                  0.85%
                               Next    $ 1,500,000                  0.70%
                               Next    $ 5,000,000                  0.50%
                               Over    $ 10,000,000                 0.25%

Fees to be assessed will be outlined in the advisory agreement to be signed by the Client. Annualized
fees are billed on a pro-rata basis quarterly in arrears based on the time-weighted daily average value
of the account(s) during the quarter. Fees are generally not negotiable; however, our firm may make
exceptions under certain circumstances at our sole discretion. Fees will be deducted from client
account(s). In rare cases, our firm will agree to directly invoice. Further, cash is frequently held within
model portfolios. We assess advisory fees on cash and cash equivalents when held within a managed
account and/or managed model. As part of this process, Clients understand the following:

    a) The client’s independent custodian sends statements at least quarterly showing the market
       values for each security included in the Assets and all account disbursements, including the
       amount of the advisory fees paid to our firm;
    b) Clients will provide authorization permitting our firm to be directly paid by these terms. Our
       firm will send an invoice directly to the custodian; and
    c) If our firm sends a copy of our invoice to the client, a legend urging the comparison of
       information provided in our statement with those from the qualified custodian will be
       included.

The maximum annual fee charged to clients by Third-Party Managers (if applicable) will not exceed
1.00%. This fee shall be separate from and in addition to the advisory fee charged by our firm.
However, the maximum combined advisory fee charged to clients will not exceed 2.00%. Our firm
will debit fees for this service as disclosed in the executed advisory agreement between the client and
our firm. Third-Party Managers establish and maintain their own separate billing processes over
which we have no control, and which may differ from our firm’s billing process. In general, they will
directly bill you and describe how this works in their separate written disclosure documents. The
Third-Party Managers we recommend will not directly charge you a higher fee than they would have
charged without us introducing you to them.

Financial Planning & Consulting:

Our firm charges a flat fee for financial planning and consulting services. The maximum flat fee to be
charged will not exceed $3500. The total estimated fee, as well as the ultimate fee charged, is based
on the scope and complexity of our engagement with the client. The fee-paying arrangements will be
determined on a case-by-case basis and will be detailed in the signed consulting agreement. Our firm
will not require a retainer exceeding $1,200 when services cannot be rendered within 6 months.

ADV Part 2A – Firm Brochure                     Page 7                         Cerro Pacific Wealth Advisors, LLC

Retirement Plan Consulting:

The maximum annual fee charged for this service will not exceed 1.00%. The fee to be charged is
based on the scope and complexity of our engagement with the client. The fee-paying arrangements
will be determined on a case-by-case basis and will be detailed in the signed consulting agreement.

Other Types of Fees & Expenses

Clients will incur transaction fees for trades executed by their chosen custodian via individual
transaction charges. These transaction fees are separate from our firm’s advisory fees and will be
disclosed by the chosen custodian. Fidelity Brokerage Services (“Fidelity”) eliminated transaction
fees for U.S. listed equities and exchange traded funds for clients who opt into electronic delivery of
statements or maintain at least $1 million in assets at Fidelity. Clients who do not meet either criteria
will be subject to transaction fees charged by Fidelity for U.S. listed equities and exchange traded
funds.

Clients may also pay holdings charges imposed by the chosen custodian for certain investments,
charges imposed directly by a mutual fund, index fund, or exchange traded fund, which shall be
disclosed in the fund’s prospectus (e.g., fund management fees, distribution fees, surrender charges,
variable annuity fees, IRA and qualified retirement plan fees, mark-ups and mark-downs, spreads
paid to market makers, fees for trades executed away from custodian, wire transfer fees and other
fees and taxes on brokerage accounts and securities transactions). Our firm does not receive a portion
of these fees.

Termination & Refunds

Either party may terminate the advisory agreement signed with our firm for our Comprehensive
Portfolio Management service in writing at any time. Upon notice of termination, pro-rata advisory
fees for services rendered to the point of termination will be charged. If advisory fees cannot be
deducted, our firm will send an invoice for due advisory fees to the client.

Financial Planning & Consulting clients may terminate their agreement at any time before the
delivery of a financial plan by providing written notice. For purposes of calculating refunds, all work
performed by us up to the point of termination shall be calculated based on the number of hours work
versus the estimated number of hours needed to fully render services. Clients will receive a pro-rata
refund of unearned fees based on the time and effort expended by our firm.

Either party to a Retirement Plan Consulting Agreement may terminate at any time by providing
written notice to the other party. Full refunds will only be made in cases where cancellation occurs
...

Item 7: Types of Clients & Account Requirements
Our firm has the following types of clients:

    •    Individuals and High Net Worth Individuals;
    •    Trusts, Estates or Charitable Organizations;
    •    Pension and Profit-Sharing Plans;
    •    Corporations, Limited Liability Companies and/or Other Business Types

Our firm does not impose requirements for opening and maintaining accounts or otherwise engaging
us. However, Clients who opt into electronic delivery of statements or maintain at least $1 million in
assets at Fidelity will not be charged transaction fees for U.S. listed equities and exchange traded
funds. Our firm recommends that clients opt into electronic delivery of statements to avoid
transaction fees for U.S. listed equities and exchange traded funds, and as such, our firm will assist
clients wishing to opt into electronic delivery of statements.