Pecaut & Co

Fees and Compensation

A. Advisory Fees and Compensation

As compensation for advisory services rendered, Pecaut Wealth Management charges a quarterly
portfolio management fee of up to 0.375% on assets under management. Fees are billed quarterly in
arrears based on the valuation of the client account(s). Adjustments are made for significant flows
during the period.

If the portfolio management agreement is executed at any time other than the first day of a calendar
quarter, our fees will apply on a pro-rata basis, which means that the advisory fee is payable in
proportion to the number of days in the quarter for which you are a client. Our advisory fee is
negotiable, depending on individual client circumstances. Immediate family of Pecaut Wealth
Management employees generally receive reduced rates.

B. Payment of Fees

Management fees are collected in arrears immediately after the end of each quarter. Most clients
arrange for Pecaut Wealth Management to deduct fees directly from their accounts. Clients may

instead elect to be invoiced. For these clients, we send a quarterly statement showing the calculation
of the advisory fee.

See Item 15 for more information on deducting fees from client accounts.

C. Additional Fees and Expenses

In addition to the management fee paid to Pecaut Wealth Management, clients are responsible for
fees and expenses charged by custodians and broker-dealers, including trading commissions, other
transaction charges, and custodial and account maintenance fees. See Item 12 for additional
information regarding Pecaut Wealth Management’s brokerage practices.

Pecaut Wealth Management may recommend investments in mutual funds and exchange traded
funds. These types of investments often charge their own fees for management of the fund and to
cover fund expenses. Each fund publishes a Prospectus which includes a detailed fee schedule.
Clients are responsible for fund fees in addition to the management fee paid to Pecaut Wealth
Management.

Pecaut Wealth Management may agree to provide one-time financial planning services to individuals
for which the firm does not provide continuous investment advice and/or ongoing management
services. For these services, Pecaut Wealth Management will charge a one-time financial planning
fee, per plan, not to exceed $7,500. This fee is negotiable and can be waived at Pecaut Wealth
Management’s discretion.

D. Prepayment of Fees

Under no circumstances do we require or solicit payment of fees in advance of services rendered.

E. Additional Compensation and Conflicts of Interest

Some providers of investment products offer compensation to advisers for each sale. Such practices
can create a conflict of interest for investment advisers.

Pecaut Wealth Management does not receive any transaction based compensation for the sale of any
product. Pecaut Wealth Management does not receive asset-based sales charges or service fees
from the sale of the mutual funds or pooled investment funds. Where an account is invested in a
mutual fund or other pooled investment vehicle, Pecaut Wealth Management does not receive dual
level advisory fees.

Types of Clients

We offer investment advisory services to individuals, trusts, charitable organizations, corporations,
pension and profit sharing plans, and other business entities.
In general, we require a minimum of $500,000 to open and maintain an advisory account. At our
discretion, we may waive this minimum account size.