McDermott Investment Advisors LLC

Fees and Compensation - Item 5

Portfolio Management Services
Our fee for portfolio management services is based on a percentage of your assets we manage and is set forth in
the following fee schedule:

        Assets Under Management                              Annualized Fee
        $25,000 - $500,000                                            2.00%
        $500,001 - $1,000,000                                         1.50%
        $1,000,001 and above                                          1.00%

Our fee includes the fees charged by the sub adviser the portfolio model provider and the platform fee charged by
the custodian. Endeavor Program accounts are subject to our customary portfolio management fees listed above.

Our annual portfolio management fee is billed and payable quarterly in advance based on the value of your
account on the last day of the previous quarter.

If the portfolio management agreement is executed at any time other than the first day of a calendar quarter, our
fees will apply on a pro-rata basis, which means that the advisory fee is payable in proportion to the number of
days in the quarter for which you are a client. Our advisory fee is negotiable, depending on individual client
circumstances. For example, we may negotiate a lower fee for clients with an account over $2.5 million.
Additionally, individual accounts established by several members of the same family/household may be
aggregated and given a reduced rate.

At our discretion, we may combine the account values of family members living in the same household to
determine the applicable advisory fee. For example, we may combine account values for you and your minor
children, joint accounts with your spouse, and other types of related accounts. Combining account values may
increase the asset total, which may result in your paying a reduced advisory fee based on the available breakpoints
in our fee schedule stated above.

We will deduct our fee directly from your account through the qualified custodian holding your funds and
securities. We will deduct our advisory fee only when you have given our firm written authorization permitting the
fees to be paid directly from your account. Further, the qualified custodian will deliver an account statement to
you at least quarterly. These account statements will show all disbursements from your account. You should
review all statements for accuracy. We will also receive a duplicate copy of your account statements.

McDermott Investment Advisors, LLC
Form ADV Part 2A

You may terminate the portfolio management agreement by providing written notice to our firm. You will incur a
pro-rata charge for services rendered prior to the termination of the portfolio management agreement, which
means you will incur advisory fees only in proportion to the number of days in the quarter for which you are a
client. If you have pre-paid advisory fees that we have not yet earned, you will receive a prorated refund of those
fees.

Financial Planning Services Fees
We charge an hourly fee of $200 for financial planning services, which is negotiable depending on the scope and
complexity of the plan, your situation, and your financial objectives. An estimate of the total time/cost will be
determined at the start of the advisory relationship. In limited circumstances, the cost/time could potentially
exceed the initial estimate. In such cases, we will notify you and request that you approve the additional fee.

We require that you pay 50% of the fee in advance and the remaining portion upon the completion of the services
rendered. We will not require prepayment of a fee more than six months in advance and in excess of $500.

You may terminate the financial planning agreement by providing written notice to our firm. You will incur a pro-
rata charge for services rendered prior to the termination of the agreement. If you have pre-paid advisory fees that
we have not yet earned, you will receive a prorated refund of those fees.

Additional Information about Fees and Expenses
As part of our investment advisory services to you, we may invest, or recommend that you invest, in mutual funds
and exchange traded funds. The fees that you pay to our firm for investment advisory services are separate and
distinct from the fees and expenses charged by mutual funds or exchange traded funds (described in each fund’s
prospectus) to their shareholders. These fees will generally include a management fee and other fund expenses.
You will also incur transaction charges and/or brokerage fees when purchasing or selling securities. These charges
and fees are typically imposed by the broker-dealer or custodian through which your account transactions are
executed. We do not share in any portion of the brokerage fees/transaction charges imposed by the broker-dealer
or custodian. To fully understand the total cost you will incur, you should review all the fees charged by mutual
funds, exchange traded funds, our firm, and others. For information on our brokerage practices, please refer to the
“Brokerage Practices” section of this Disclosure Brochure.

Performance Reporting Services Fees: Clients who have selected to receive performance reporting services from
Hilltop Securities are charged an annual reporting fee of $40.

Negotiability of Fees: We allow Associated Persons servicing the account to negotiate the exact investment
management fees within the range disclosed in our Form ADV Part 2A Brochure. As a result, the Associated Person
servicing your account may charge more or less for the same service than another Associated Person of our firm.
Further, our annual investment management fee may be higher than that charged by other investment advisors
offering similar services/programs.

Billing on Cash Positions: The firm treats cash and cash equivalents as an asset class. Accordingly, unless
otherwise agreed in writing, all cash and cash equivalent positions (e.g., money market funds, etc.) are included as
...

Types of Clients - Item 7

We offer investment advisory services to individuals, high net worth individuals, trusts, estates, and charitable
organizations.

In general, we require a minimum of $100,000 to open and maintain a discretionary asset management account.
Third-party advisory programs are subject to different minimums that are disclosed in each third party’s disclosure
documents.

At our discretion, we may waive this minimum account size. For example, we may waive the minimum if you
appear to have significant potential for increasing your assets under our management. We may also combine
account values for you and your minor children, joint accounts with your spouse, and other types of related
accounts to meet the stated minimum.

                       Methods of Analysis, Investment Strategies and Risk of Loss - Item 8

Our investment strategies and advice may vary depending on each client’s specific financial situation. As such, we
determine investments and allocations based on your predefined objectives, risk tolerance, time horizon, financial
horizon, financial information, liquidity needs, and other various suitability factors. Your restrictions and guidelines
may affect the composition of your portfolio.

McDermott Investment Advisors, LLC
Form ADV Part 2A