McMillan Office Inc

Item 5 – Fees and Compensation

Investment Advisory Program

The fee for the McMillan Office, Inc. investment advisory service is based on the account value.
The fee is generally deducted from the account at the beginning of each calendar quarter. On rare
occasions, some clients pay by check after an invoice is sent to them. Fees, which are negotiable,
are calculated at the beginning of each quarter based on the total market value of the portfolio
including accrued income at the following annual rates: 1.0% of market value.

The investment advisory contract or agreement may be terminated by either party upon sixty (60)
days written notice. Upon termination of the McMillan Office, Inc. investment management
services, the McMillan Office, Inc. will have no obligation or authority to recommend or take
any action regarding the previously managed assets. The Client will bear the sole responsibility
to work with the custodian for liquidation and/or management of assets after termination.

The advisory fees paid to the McMillan Office, Inc. represent fees for management of the
account and are separate from any other fees and expenses charged by other parties; therefore,
the advisory fees shown in this brochure represent only fees paid to the McMillan Office, Inc.
and do not reflect operating expenses and other costs charged by mutual funds or variable
annuities and it is important the Client understands that these expenses and costs are ultimately
borne by the Client, as the shareholder. In addition, mutual funds or variable annuities may
charge contingent deferred sales charges (“CDSC)” on withdrawals. The McMillan Office, Inc.
is not responsible for any CDSC charges incurred through the management of the Client’s
portfolio or for any transaction costs incurred while managing the Client’s assets. A complete
description of all fees and expenses of the securities in which the Client is invested are contained
in the relevant prospectuses. The McMillan Office, Inc. also advises the Client to carefully
review the custody agreement with the custodian as there may be custodial fees and other service
fees charged to the Client by the custodian. It should be noted that the vast majority of assets
under management at the McMillan Office, Inc. are individual stock and bond holdings, which
do not incur the additional costs associated with mutual funds and annuities.

3rd Party Affiliation

The McMillan Office, Inc. is not compensated by any third party. As such, there are no conflict-
of-interest issues pertaining to the McMillan Office, Inc. Clients’ assets or accounts.

Item 7 – Types of Clients

The McMillan Office, Inc. provides portfolio management services to individuals, trusts, and
estates, charitable and nonprofit organizations, pensions, profit sharing plans, retirement
accounts and state and municipal entities. The McMillan Office minimum account size is
$100,000. However, in some instances we accept accounts of less value.