McMahan Capital Management LLC

Item 5: Fees and Compensation

Fees for Investment Management Services:
Compensation is based on total assets under management

        Assets Under Management                       Annual Management Fee:
               First $500,000                                 1.25%
          $500,001 to $1,000,000                              1.00%
         $1,000,001 to $5,000,000                             0.75%
           $5,000,001 and above                               0.50%

Fees are paid quarterly in advance by invoice or paid by direct debit from client’s
designated account(s) (except for accounts subject to ERISA which are billed in arrears).
Fees are based on the closing market value of the account(s) at the end of the month
preceding billing as calculated by your custodian.

The method of fee payment (advance, arrears, direct debit or invoice) is documented in the
investment management agreement we have with each Client.

Investments in mutual funds may incur management fees in addition to those charged by
McMahan (see below).

General Information on Advisory Services / Fees

   1. All client accounts may be invested in mutual funds, exchange traded funds (or
      similar securities). These securities carry additional fees and expenses (including
      advisory fees) that are in addition to McMahan’s fees for our services. As a result,
      you should evaluate the total of the fees to ensure the services received are
      reasonable from a total cost perspective.

   2. McMahan’s fees are not negotiable whether for advisory or financial planning
      services. In no event will Client be charged more than the published fee schedule.

   3. Accounts for employees and their family members (or friends of McMahan) may
      be managed for reduced fees or no fee. Exceptions to our standard fees charged to
      Clients who are not employees, their family members or friends of the firm may
      result in a conflict of interest and possibly variation in the degree to which the

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       accounts are managed. However, our services are consistently provided to all
       clients, including those described here.

   4. Lower fees for comparable services may be available from other sources.

Item 7: Types of Clients

McMahan provides investment advisory services to:

      individuals,
      trusts,
      estates,
      corporations.
      pensions and/or profit-sharing plans; and
      non-profit organizations

McMahan does not require a minimum to establish an investment advisory account.