Taconic Advisors Inc

Item 5 – Fees and Compensation

Open Retainer Services

Taconic charges an annual, fixed fee payable on a quarterly basis, in advance, for the Open
Retainer Service. Fees are based on a formula that reflects the complexity of the Client’s
financial needs and the scope of the services to be provided using the Client’s total income,
assets, and overall complexity of the Client’s financial situation. Fees are not negotiable. The
range of fees for Taconic’s open retainer services is generally $5,000- $100,000.

In the event that a client begins this service on a date other than the start of a calendar quarter,
Taconic will prorate the initial payment to align the billing with the calendar quarter. In the
event that Taconic or a Client terminate services during a claendar quarter, Taconic will
promptly refund any unearned, prepaid advisory fees from the effective date of the termination
through the end of the billing period. Clients authorize Taconic to deduct its fee directly from
the their accounts at the independent custodian. Taconic may, in its sole discretion, allow
clients to make payment by check or other means of electronic payment.

Fees are reviewed annually. Following the Initial Term, Taconic may amend its fee. The
current fee will continue for thirty (30) days after Taconic notifies the Client, in writing, of the
change in the fee. The new fee becomes effective after thirty (30) days unless Client notifies
Taconic in writing to terminate the Agreement.

In the Open Retainer Service, the client will also agree to compensate Taconic for out of
pocket expenses incurred in performing professional services, including long distance phone
calls, overnight mail and tax return processing fees.

Limited-Scope Financial Planning Service

Taconic charges a fixed fee determined by the scope of the services requested by the Client in
the agreement and the complexity of the Client’s financial situation. Taconic collects one half
of the fee upon the Client’s signing the agreement, and the remainder of the fee is due and
payable upon the conclusion of the in-person consultation meeting. Fees are not negotiable.
The range of fees for Taconic’s Limited Scope Financial Planning Services is generally $1,100
- $5,000.

Should the Client choose to terminate these services before receiving Taconic’s
recommendations, Taconic will determine the fee for the services based upon the work
completed at the time of termination. Any prepaid but unearned fees will be promptly
refunded by Taconic. Any fees that have been earned but not yet paid by Clients will be due
and payable. Whether fees have been earned or unearned will be determined by Taconic at
Taconic’s sole discretion.

Taconic may amend its fee, subject to the Client’s consent and right to terminate the
agreement, based upon the discovery of new information that changes the scope and
complexity of the service. Taconic will notify the Client in advance of any additional fee and
the Client will necessarily agree to the fee before the additional services will begin.

Sub-Advisor Fee

The Sub-Advisor charges its fee for the provision of ongoing investment management services
separately and in addition to Advisor’s fee above. The Sub-Advisor’s fee is outlined in the
Sub-Advisor’s ADV Part 2 and Part 3 that clients receive. Taconic has negotiated the Sub-
Advisor’s fee on behalf of its Clients. The Sub Advisor’s fee is set forth in the Client’s advisory
agreement with Taconic; however, the Sub Advisor’s fee is contingent upon Taconic’s
maintaining a specific amount of assets under management with the Sub Advisor. As such,
the fee paid by the Client to the Sub Advisor moves higher or lower depending not on the size
of the Client’s individual account, but on the overall level of assets under management held
by Taconic with the Sub Advisor. The Sub-Advisor’s fee is payable quarterly, in advance,
using the value of the Assets under its management at the end of each quarter. Client
authorizes Sub-Advisor to deduct the Sub-Advisory fee directly from Client’s Account held at
the independent qualified custodian. For Accounts established with Sub-Advisor in the
middle of a calendar quarter, Sub-Advisor will prorate its fee from the date the Client’s
Account was funded. Upon termination, the Sub Advisor will refund any unearned fees on a
pro-rated basis.

Other Fees and Expenses

In addition to Taconic’s fee, clients may incur certain other fees and charges to implement
Taconic’s recommendations. Additional charges and fees will be imposed by custodians,
brokers, third party investment and other third parties, such as fees charged by managers,
custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and
electronic fund fees, and other fees and taxes. 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 Taconic’s fee.

Item 7 – Types of Clients

Taconic primarily provides personalized financial planning and investment advisory services
to individuals and families. We strive to work with people from all different walks of life. As
such, we maintain no minimum net worth or asset requirements. As discussed above, your
chosen relationship agreement and fee will be based upon your individual circumstances.