John T McCarthy LLC

Item 5: Fees and Compensation

Unless a Client has received this brochure at least 48 hours prior to signing an advisory
agreement, the advisory agreement may be terminated by the Client within five (5) business
days of signing the agreement without penalty or incurring any fees. At no time do we
require prepayment of $500 or more six months or more in advance of rendering services.

Below is a brief description of our fees, however, you should review your advisory
agreement for more detailed information regarding the exact fees you will be paying. No
increase to the agreed-upon advisory fee shall occur without prior written Client consent.
Please note, lower fees for comparable services may be available from other sources.

Ongoing Non-Discretionary Asset Management
McCarthy’s Investment Advisory services are billed on an annual fixed fee basis,
negotiated between the Client and McCarthy. The annual fixed fee is not subject to
increase unless agreed in writing by the Client and McCarthy. The annual fixed fee is billed
in four quarterly installments each calendar quarter in advance (billed approximately
January 15, April 15, July 15, and October 15). Annual fees range from $3,000 to $25,000.
Fees are negotiable and will be clearly disclosed in the Client’s agreement. Below is our
fixed fee schedule.

Minimum Planning Fee            $3,000         unless negotiated different

                            Fixed Fee Schedule

 Account Market Value                             Annual Fixed Fee
 $999,999 and below                               Negotiable (not to exceed $5,999)
 $1,000,000 - $1,500,000                          $6,000
 $1,500,001 - $2,000,000                          $8,000
 $2,000,001 - $5,000,000                          $10,000
 $5,000,001 - $7,500,000                          $15,000
 $7,500,001 - $15,000,000                         $20,000
 $15,000,001 and above                            $25,000

As a further limitation to the maximum fixed fee for Investment Advisory services, the
annual fixed fee in a given year may not exceed 1.50% of Assets Under Management
(“AUM”), as determined on the Effective Date, and annually on the anniversary of the
Effective Date for each year thereafter. If the annual fixed fee stated in this section exceeds
1.50% of AUM, the annual fixed fee will be adjusted to equal 1.50% of AUM.

If Client’s assets (the “Account”) are managed by McCarthy for a partial quarter, the fixed
fee will apply for that quarter on a pro rata basis. Upon termination of McCarthy’s
Investment Advisory services prior to the end of a quarter, Client shall be entitled to a
refund on a pro rata basis of any fees paid in advance for that quarter. The balance of any
prepaid unearned fees (if any) will be promptly refunded to the Client. Calculating unearned

fees will be pro-rated based upon days within the billable period in which we provided
advisory services. If no services were provided prior to cancellation, a full refund will be
issued for the billing period.

Fees are negotiable depending on the Client’s financial circumstances Client’s total fee
will not exceed 1.5% of investments unless planning fee is applicable.

Client fees are billed and not directly debited from the Account.

The Investment Advisory fixed fee and the Financial Planning fixed fee may cause the total
fees to be higher than fees typically charged by other investment advisory firms for
similar services. For some states, this disclosure is necessary if the total annual fees are
2.0% of AUM or higher.

Non-Discretionary Investment Management
McCarthy’s Non-Discretionary Investment Management services are billed on an annual
fixed fee basis, negotiated between the Client and McCarthy. The annual fixed fee is not
subject to increase unless agreed in writing by the Client and McCarthy. The annual fixed
fee is billed in four quarterly installments each calendar quarter in advance (billed
approximately January 15, April 15, July 15, and October 15). Our minimum annual fee is
$3,000 and will not exceed $25,000. Fees are negotiable and will be clearly disclosed in
the Client’s agreement. Below is our fixed fee schedule.

 Account Market Value                             Annual Fixed Fee
 $999,999 and below                               Negotiable (not to exceed $5,999)
 $1,000,000 - $1,500,000                          $6,000
 $1,500,001 - $2,000,000                          $8,000
 $2,000,001 - $5,000,000                          $10,000
 $5,000,001 - $7,500,000                          $15,000
 $7,500,001 - $15,000,000                         $20,000
 $15,000,001 and above                            $25,000

As a further limitation to the maximum fixed fee for services, the annual fixed fee in a
given year may not exceed 1.50% of Assets Under Management (“AUM”), as determined
on the Effective Date, and annually on the anniversary of the Effective Date for each year
thereafter. If the annual fixed fee stated in this section were to exceed 1.50% of AUM, the
annual fixed fee will be adjusted to equal 1.50% of AUM.

If Client’s assets (the “Account”) are managed by McCarthy for a partial quarter, the fixed
fee will apply for that quarter on a pro rata basis. Upon termination of McCarthy’s services
prior to the end of a quarter, Client shall be entitled to a refund on a pro rata basis of any
fees paid in advance for that quarter. The balance of any prepaid unearned fees (if any) will
be promptly refunded to the Client. Calculating unearned fees will be pro-rated based upon
days within the billable period in which we provided advisory services. If no services were
provided prior to cancellation, a full refund will be issued for the billing period.

  Financial Planning and Consulting Services
  Financial Planning services are billed at a fixed fee ranging from $500 - $5,999 per year,
  which will be billed in four quarterly installments each calendar quarter in advance (billed
...

Item 7: Types of Clients

McCarthy provides investment advisory services and financial planning services to
individuals, trusts and estates.

Our minimum account size requirement is $200,000 to open or maintain an account under
our management. McCarthy may reduce or waive the minimum account size requirement
on a case-by-case basis, however, our fee minimum as listed under Item 5 would still apply.
For Clients residing in Washington, the fee minimum will not exceed 1.50% of assets under
management.