Obsidian CIO LLC

Item 5 – Fees and Compensation

Fees are calculated on a per Account basis and will be based on the services an Advisor has
selected Obsidian CIO to perform, which will be outlined in the Agreement.

Fees for Investment Services
Advisors participating in the Program pay a program fee (a “Program Fee”) to Obsidian CIO.
The Program Fee is negotiable and depends on the services selected by Advisor. The total
Program Fee is no more than 100 basis points annually and is assessed against the Advisor’s
client assets allocated to Obsidian CIO. The Program Fee includes the following components:

                                         Obsidian CIO LLC
                                         Form ADV Part 2A

   1. Investment management fee: 20 – 45 basis points annually, charged on all assets
      allocated to Obsidian CIO’s investment management
   2. Reporting and administrative fee: We pass through any fees Obsidian CIO is charged
      related to platform reporting (such as our use of Orion). We do not require Advisors using
      Obsidian CIO to be on any specific platform, and if the Advisor selects a platform that
      does not result in additional costs to Obsidian CIO, there will not be a related fee pass-
      through. Currently, the maximum per account fee is less than $75.

Where Obsidian CIO is providing consulting services or non-discretionary advice to an Advisor,
it may charge a fixed fee, which is negotiable at the time of engagement and will be described
in the Agreement.

As part of its back-office platform services, Obsidian CIO processes fee billing on behalf of
Advisors for those clients of Advisor who have authorized direct fee deduction from their custodial
accounts. The Program Fee is due and payable by Advisor to Obsidian CIO within 15 days after
Advisor’s fees are collected from client accounts, or 30 days after the end of the Advisor’s client’s
billing period, whichever is earlier. Typically, the Program Fee is charged on a quarterly basis in
advance and prorated to the end of the fee billing period upon inception of the account.
Advisors have the option of billing their clients on a quarterly basis in advance or arrears. The
fee billing arrangement will be described in the Agreement. Obsidian CIO’s billing systems allow
for flat fees, tiered fees, billing in advance or arrears, bill calculation on end of period or
average daily/average month-end balances for the prior quarter, and for the direct debit of
fees from the client accounts.

The Agreement may authorize Obsidian CIO to facilitate simultaneous deduction and payment
of both the Program Fee and fees charged by the Advisor from an Account. Obsidian CIO
provides this service if included in the Agreement and after obtaining any necessary
authorizations. Alternatively, the Advisor may choose to independently deduct fees from an
Account with the client’s permission. Clients should refer to their Advisors’ disclosure brochure
and fee schedule in their investment management agreement with their Advisor for a
description of their Advisors’ fees for specific accounts.

Other Fees
Certain fees are not included in the Program Fee. The most significant of these is the fee
charged by an Advisor. In addition, Advisors’ clients will incur brokerage, transaction, and
custodial fees. These fees can vary depending on which custodian a client uses and will be
disclosed separately to the client in the custodian’s clearing and custodial paperwork. It is
typically the Advisor’s responsibility to clearly communicate to a client all fees charged for
servicing such client’s account. See Item 12 for additional information about brokerage
charges and expenses. See the Advisor’s Brochure for more information on that Advisor’s fees
and their custodial recommendations.

The Program Fee does not include mutual fund, ETF, and alternative investments fees for
investing the pool of assets in the respective investment vehicles. Please see the prospectus or
related disclosure document for information regarding these fees. Advisors’ clients may also
be charged for specific account services, such as ACAT transfers, electronic fund and wire

                                         Obsidian CIO LLC
                                         Form ADV Part 2A

transfer charges, and for other optional services elected by clients. Accounts may be subject
to transaction-based ticket charges assessed by the custodian for the purchase of certain
mutual funds. Similarly, the Program Fee does not cover certain non-brokerage-related fees
such as individual retirement account (“IRA”) trustee or custodian fees and tax-qualified
retirement plan account fees and annual and termination fees for retirement accounts (such
as IRAs). Some mutual funds assess redemption fees to investors upon the short-term sale of its
funds. Depending on the particular mutual fund, this may include sales for rebalancing
purposes. Please see the prospectus for the specific mutual fund for detailed information
regarding such fees.

Pricing
The overall value of the account and the pricing of any asset in the account for billing purposes
will be the price(s) reflected on the custodian’s statements (or on the custodian’s internal
system, for prices other than as of the close of a monthly or quarterly billing period), or in some
cases the price determined by the portfolio management vendor we use as a secondary
pricing source. In the event the custodian does not price an asset, Obsidian CIO will not assess
Program fees or Advisor fees on that asset unless Obsidian CIO establishes that the failure to
price is an error or oversight, and unless Obsidian CIO obtains independent documentation
of the price from a reliable source, such as an independent pricing vendor, the custodian,
or an independent portfolio management system.

Advisors retain the discretionary authority to allocate additional assets to Obsidian CIO or to
...

Item 7 - Types of Clients

Obsidian C I O provides investment management services solely to other registered
investment advisors (Advisors).