Meristem Family Wealth LLC

FEES AND COMPENSATION

Meristem’s compensation is fully transparent. The fees paid to Meristem will vary based upon the
size and scope of the assignments for which we are hired. The details of how Meristem’s
compensation is calculated and charged are clearly documented in the written Client Engagement
Agreement signed with each client. We charge fees based on a percentage of assets under
management, a flat annual fee, or a combination of both.

For fees based wholly or in part on a percentage of assets, Meristem uses the prior quarter-end’s
asset values which would typically not be prorated for capital contributions and withdrawals made
during the applicable calendar quarter. The fee will typically range from .20% to 1.00% based
upon the size, nature and complexity of the client relationship. Flat annual fees typically range
upwards from $15,000. While Meristem does not require clients to have a minimum level of
investable assets, our minimum total annual fee is $30,000. For special circumstances the minimum
fee can be negotiated.

Meristem generally bills on a quarterly basis in advance of each calendar quarter. Clients usually
elect to authorize Meristem to directly debit fees from their investment accounts.

A Client Engagement Agreement may be cancelled at any time, by either party, for any reason
upon receipt of written notice.

Meristem’s fees are exclusive of third-party brokerage commissions, transaction fees, and other
related costs and expenses which may be incurred by a client. Clients may incur certain charges
imposed by custodians, brokers, third-party asset managers and other third-parties such as: fees

charged by asset managers, custodial fees, deferred sales charges, odd-lot differentials, wire
transfer and electronic fund fees, banking charges (if assets are held by a bank custodian), and

other fees and taxes on brokerage accounts and securities transactions. Mutual funds and
exchange traded funds also charge internal management fees which are disclosed in a fund’s
prospectus. Such charges, fees and commissions are exclusive of and in addition to Meristem’s
fee. Meristem does not receive any portion of these commissions, fees and costs. If a desired
investment product were to have a commission or load that can be waived in favor of the client,
Meristem may advocate for this on behalf of the client.

Meristem has organized private investment pools that may be recommended to our clients. These
vehicles provide access to investment managers through aggregate client investments and are
intended to result in lower third-party manager fees. The risks related to these pools are
thoroughly outlined in the subscription and disclosure documents provided to each potential
investor. Meristem charges the investment pools for reasonable expenses incurred in the ongoing
accounting and administration of the pools. This expense reimbursement is equal to or less than
market rates for such services.

Historically, Meristem had the ability to assist clients in the purchase of certain types of life
insurance. If insurance was procured through Meristem then a commission would have been paid
to Meristem and disclosed to the client. Meristem continues to service existing policies and may
continue to receive commission trails for a number of years while policies are in force. In unusual
circumstances, this service may include restructuring coverage, including the sale of replacement
policies. In these situations a subsequent commission may be paid and would be appropriately
disclosed to the client.

Certain Meristem employees deliver individualized investment accounting and administrative
services to clients at or below market rates.

PERFORMANCE-BASED FEES AND SIDE-BY-SIDE MANAGEMENT

Meristem does not charge any performance-based fees (fees based on a share of capital gains or
on capital appreciation of the assets of a client) or side-by-side investment strategies
(simultaneous management of a mutual fund and/or a hedge fund by an advisory practice),
because we believe that may create an unintentional conflict of interest with clients.

TYPES OF CLIENTS

Meristem offers services to individuals and families and their related family partnerships, trusts,
estates, charitable organizations, corporations and other business entities.

METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS

Meristem believes in broadly diversified investment solutions customized to reflect unique client
circumstances. In partnership with our clients we take a disciplined approach to investment
management, with particular attention to risk management, diversified asset allocation, manager
selection, tax consequences and fee considerations. When making investment recommendations,
Meristem takes into account a client’s total financial picture, including assets already owned,
assets not managed by Meristem, needs for liquidity, goals and risk tolerance.

Meristem develops an overall financial strategy, identifies the asset management resources ideally
suited to our clients’ needs, and manages the allocation of client assets among those resources.
Meristem’s investment team is available to work with the client advisory teams to construct asset
allocation plans and recommendations customized to address each individual client situation.
When asset allocation plans are finalized, money managers or passive strategies for each asset
class are recommended or selected.

To provide guidance in the face of dynamic market environments, Meristem’s Investment
Committee leverages our network of research and analytical tools. We also use the expertise of
external consulting resources to cover traditional and alternative investment strategies. This
provides our foundation for manager selection and asset allocation. Investment manager selection
for any asset class focuses on the three major drivers for success of any good asset manager:
people, investment process and performance. When evaluating asset managers, Meristem
monitors:

•   Firm and product asset size and trends

•   Changes to investment teams

•   Adjustments made to an investment process

•   Style consistency

•   Performance and risk trends relative to our expectations

Meristem’s client advisors discuss initial investment portfolio recommendations with the client
before investing. The initial proposal includes information about each investment strategy and
corresponding manager, approximate timing for making each investment, tax sensitivity and fees.
Meristem believes strongly that the best outcome is achieved via a partnership with the client
that is founded on a mutual understanding of Meristem’s investment process. This includes
thorough discussions about how and why the portfolio is constructed to meet the client’s unique
objectives of risk and return.

Meristem works diligently to manage risk in client portfolios, providing no assurance that an
investment will provide positive performance over any specific period of time and that past
performance, while important, is no guarantee of future results. During different periods, market
conditions may also result in significantly different outcomes.

Listed below are specific types of risk each client should understand, as they may be applicable to
unique underlying investment assets in a portfolio:

MARKET RISK: The market values of securities owned may decline, at times sharply and
unpredictably. Market values are affected by a number of different factors, including the historical
and prospective earnings of the issuer, the value of its assets, management decisions, decreased
demand for an issuer’s products or services, increased production costs, general economic
conditions, interest rates, currency exchange rates, investor perceptions and market liquidity.

ECONOMIC RISK: Changes in economic conditions, for example, interest rates, inflation rates,
political and diplomatic events and trends, tax laws and innumerable other factors, can
substantially and adversely affect investments.

ASSET ALLOCATION RISK: Asset Allocation may have a more significant effect on account
value when one of the heavily weighted asset classes is performing more poorly than the others.
Diversification and strategic asset allocation do not assure profit or protection against loss in
declining markets.

CONCENTRATED POSITION PORTFOLIO RISK: To the extent a portfolio has a significantly
large position in a single security or several securities it bears more risk because it is not diversified.
Changes in the value of significantly over-weighted security positions may have a much more
substantial directional effect, either negative or positive, on the portfolio’s performance.

EMERGING FOREIGN MARKET RISK: Investments in the securities of foreign issuers may
experience more rapid and extreme changes in value than funds with investments solely in
securities of U.S. companies. This is because the securities markets of many foreign countries are
relatively small, with a limited number of companies representing a small number of industries.
Additionally, foreign securities issuers may not be subject to the same degree of regulation as
U.S. issuers. Reporting, accounting and auditing standards of foreign countries differ, in some
cases significantly, from U.S. standards. Also, nationalization, expropriation or confiscatory
taxation, currency blockage, political changes or diplomatic developments could adversely affect
investments in a foreign country.

FIXED INCOME RISK: Securities that provide for interest or a stream of payments to the
investor have several risks including: interest rate risk, which is the chance that bond prices
overall will decline because of rising interest rates; income risk, which is the chance that a
strategy’s income will decline because of falling interest rates; credit risk, which is the chance that
a bond issuer will fail to pay interest and principal in a timely manner, or that negative perceptions
of the issuer’s ability to make such payments will cause the price of that bond to decline; and call
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