McCarthy Asset Management Inc

ITEM 5: FEES AND COMPENSATION
Investment Management Services
Advisory Fees & Billing Practices

Fees for investment management services are calculated as a percentage of assets under management.
These fees are billed quarterly in arrears, based on the assets under management as of the last day of the
calendar quarter. Our fee schedule is:

                Assets under Management                                Annual Fee

                On the first $500,000                                    1.00%
                On the next $2,000,000                                   0.75%
                On the next $2,000,000                                   0.50%
                On values over $4,500,000                                0.25%

We do not negotiate lower fees with clients.

You may provide authorization for us to deduct our fees directly from your investment account.
Important information about the deduction of management fees:

       You must provide authorization for us to deduct fees in the appropriate section of our Investment
        Advisory Agreement.

       You will receive a detailed invoice each quarter which outlines our fees and how they are
        calculated at the same time we request payment from the custodian. MAM verifies the accuracy
        of the fee billing before requesting payment.

       You will receive a statement from your custodian which shows all transactions in your account,
        including the deduction of our fee.

       You are responsible for reviewing the accuracy of the fees being billed, as the custodian will not
        do so.

You may elect to pay by check rather than having payment deducted directly from your account.

If you would like to end our advisory relationship, you may do so by providing 30 days written notice.
We will prorate the advisory fees received through the termination date and send you an invoice for the
advisory fees due.

Other Costs Involved

In addition to our advisory fee shown above, you are responsible for paying fees associated with investing
for your account. These fees include:

     operating expenses for ETFs and mutual funds. These expenses include management fees for
      ETFs and both management fees and 12b-1 fees for mutual funds. These are fees charged by the
      managers of the ETF or mutual fund and are a portion of the expenses of the ETF or mutual fund.
      MAM does not receive any portion of these expenses.

       brokerage costs and transaction fees for any securities or fixed income trades. These are
        generally charged by your custodian and/or executing broker.

       Certain mutual funds charge a “short-term redemption fee” if the fund is sold before the
        redemption period has lapsed. Typically the redemption period is one to three months from the
        date of purchase.

Additional information about brokerage costs and services is provided in “Item 12: Brokerage Practices.”

Financial Planning
Financial planning services are provided for an hourly fee of $330. You will receive an invoice upon
completion of the financial plan that is payable upon receipt. You may pay for financial planning services
by check or cash.

You may cancel our financial planning agreement at any time by providing written notice. Upon
cancellation, we will present you with an invoice for time spent. This invoice is payable upon receipt.

We have a conflict of interest when you implement the financial plan through us. In these cases, we
receive the customary fees as disclosed in the above section. You are not required to employ us to
implement the financial plan, or implement the plan, or any portion of it, at all.

We believe the fees mentioned above are competitive; however you may be able to obtain similar services
from other sources at a lower price.

ITEM 7: TYPES OF CLIENTS
Our clients are diverse, located across the country, and have a broad range of backgrounds, ages and
objectives. These clients include individuals, trusts, small businesses and pension plans. Our current
minimum for new clients is $1,000,000 of assets under management. However, we may waive that
minimum at our sole discretion.