Prairiewood Capital LLC

Item 5 Fees and Compensation
A. Compensation for Advisory Services
Investment Management Services

Prairiewood is a fee-only investment advisor. Our compensation comes directly from our clients,
and we are never compensated by financial institutions or third parties for specific recommendations
made to clients.

Our fees are determined for each client based on our assessment of the client’s complexity, the
expected time, effort, and experience required to serve the client effectively, and the amount of assets
to be managed.

Our fees are typically based on a tiered schedule where the average fee declines as the amount of
assets managed increases. Our fees generally range between 0.5% and 1.5% of the assets under
management and are determined based on our assessment of the facts and circumstances of each
client relationship. In certain instances, we will implement a minimum fee if we do not believe the
asset-based fee reflects an appropriate fee given the specific facts and circumstances.

B. How Fees are Charged
Our investment management fees are billed quarterly in arrears. These fees are calculated based
on the market value of the account on the last day of the quarter. For new accounts or additional
investments made, the fee is pro-rated based on the number of days the funds are under our
management. In most cases, these fees are automatically deducted directly from the client’s
account.

Tax preparation is provided on a flat fee basis ranging from negotiable to $5,000 and payroll
support services are provided at a fee up to $500 per quarter. These fees are invoiced after the
services have been performed.

Clients who choose to receive access to the estate planning software will be charged a one-time
access fee of $500 and an ongoing annual fee of $100 for continued access to the software platform.
Clients are billed directly and these fees are separate from and in addition to our investment
advisory fees. We retain the full amount charged to the client since we pay a separate subscription
fee for access to the platform regardless of client participation.

C. Trading Costs and Other Fees
The management fee does not cover any execution-related expenses, commissions or margin
interest, if any, securities exchange or SEC fees, or other fees required by law or charged by the
broker-dealer with custody of the account. The commission rate varies based on the custodian and
financial products used. Charles Schwab does not charge a commission for online trades of U.S.
exchange listed securities. Clients will incur brokerage and other transaction costs, including the
expenses ratios of any Exchange Traded Funds (ETFs) or mutual funds used. Advisory clients
should also note that fees for comparable services vary and lower fees may be available from other
sources. Please see Item 12 – Brokerage Practices for more information on brokerage.

D. Prepaid Fees and Refunds
Our advisory fees are deducted quarterly in arrears. Accordingly, we do not collect fees in advance
that could become unearned. In the event that you wish to terminate our investment advisory
services, fees are generally prorated based on the length of time in the billing period in which
services are provided.

E. Commissionable Securities Sales
We do not sell securities for a commission.

Item 7 Types of Clients
Prairiewood generally provides investment advice and financial planning to individuals with a net
worth of $1,000,000 to $50,000,000. We also work with families earning over $300,000 annually
who do not have a $1,000,000 net worth yet, but are well on their way and are experiencing the
same challenges around financial planning, tax strategy, and investment management. Although
we do not have a minimum account size, we may implement a minimum fee.

Our clients generally are focused on creating a comprehensive strategy to reduce the taxes they
pay over their lifetime, grow their wealth tax efficiently, and develop a long-term plan to leave a
lasting legacy. Prairiewood has the ability to work with clients above and below our typical net
worth thresholds at our sole discretion.