McCarley & Cook LLC

Item 5 – Fees and Compensation

McCarley & Cook’s fee structure and compensation methodology is set forth below for each type
of engagement. A client’s fee is set forth in each client’s written agreement with McCarley & Cook.
Fees may be reduced or waived in certain circumstances and are negotiable in McCarley & Cook’s
sole discretion based on such factors as the complexity of the client’s financial planning needs, and
the relationship of the client with McCarley & Cook. In the event that the agreement’s first renewal
term begins on a date other than the start date of a calendar quarter, the Firm will prorate the first
quarter of the client’s renewal term fee to align the client’s billing with a quarterly calendar billing
cycle.

Wealth Management Engagement Fee
For its Wealth Management Engagement fee, McCarley & Cook charges an annual fee based upon
the assets under management according to the tiered Fee Schedule below, charged quarterly, in
advance, using the value of the client’s account(s) on the last day of the preceding quarter. The
wealth management fee includes investment management services, and to the extent identified by
the client, financial planning services.

                  Account Value                                       Asset-Based Rate per
                                                                      Annum
                  $0 to $1,000,000                                    1.0%
                  $1,000,001 to $3,000,000                            .60%
                  Greater than $3 MM                                  negotiable

For purposes of calculating a client’s fee the Firm may aggregate accounts for members of the
same household.

Some clients may be under a different fee schedule because their relationships were established

under a prior fee schedule. Legacy clients of the Advisor will receive their original reduced fee
schedule unless it’s more advantageous for them to be placed on the new fee schedule shown
above. Once the initial Agreement is signed this process will be monitored on a best-efforts basis
by the Advisor.

Stand-Alone Financial Planning Fee
McCarley & Cook charges an hourly fee for its stand-alone financial planning services, ranging from
$200-$500 per hour, depending upon the complexity of the service being provided. The total fee
will be estimated and quoted in advance. The fee is due upon receipt of the Firm’s invoice after
the conclusion of the services.

Fee Billing
For wealth management services, McCarley & Cook bills its fee quarterly, in advance, from the
Client’s brokerage account. Clients provide written authorization permitting McCarley & Cook to be
paid directly from their accounts held at the custodian as part of their agreement, and separate
account forms provided by the Custodian. Clients will be provided with a statement, at least
quarterly, from the account’s custodian reflecting deductions of the advisory fees.

Financial planning fees are billed upon completion and payable by check to McCarley & Cook.

Per regulatory requirements, McCarley & Cook will not collect advance fees of $1200 or more for
services that will be performed six (6) months or more in advance.

Other Fees and Expenses
The Client is responsible for all custodial and securities execution fees charged by the custodian
and executing broker-dealer. The management fee charged by McCarley & Cook is separate and
distinct from these custodian and execution fees.

In addition, all fees paid to McCarley & Cook for advisory services are separate and distinct from
the expenses charged by mutual funds and exchange-traded funds to their shareholders, if
applicable. These fees and expenses are described in each fund’s prospectus. These fees and
expenses will generally be used to pay management fees for the funds, other fund expenses,
account administration (e.g., custody, brokerage and account reporting), and a possible distribution
fee. A Client could invest in these products directly, without the services of McCarley & Cook, but
would not receive the services provided by McCarley & Cook which are designed, among other
things, to assist the Client in determining which products or services are most appropriate for each
Client’s financial situation and objectives.

Accordingly, the Client should review both the fees charged by the fund[s] and the fees charged
by McCarley & Cook to fully understand the total fees to be paid.

Termination
Clients may request to terminate their agreement with McCarley & Cook by providing written notice.
The Client shall be responsible for fees up to and including the effective date of termination. The
Advisor will promptly refund any unearned, prepaid fees from the effective date of termination.

If the Client has not received McCarley & Cook’s Brochure at least 48 hours prior to entering into
an advisory agreement, the Client has the right to terminate the agreement without penalty or fee

within five business days after entering into the contract.

Compensation for Sales of Securities
McCarley & Cook does not buy or sell securities and does not receive any compensation for
securities transactions in any Client account, other than the Advisory Fees noted above.

Item 7 – Types of Clients

McCarley & Cook offers investment advisory services to individuals and families and small
businesses.