MCW Financial Inc

Item 5 Fees and Compensation
Portfolio Management
Our fee for portfolio management services is based on a percentage of your assets we manage. It is
negotiable and will not exceed 1.5% annually.

The annual portfolio management fee is billed and payable quarterly in arrears based on the value of
your account on the last day of the 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.

At our discretion, we will 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 the following requirements are met:

    • You provide our firm with written authorization permitting the fees to be paid directly from your
      account held by the qualified custodian.

    • We send you an invoice showing the amount of the fee, the value of the assets on which the
      fee is based, and the specific manner in which the fee was calculated.

    • The qualified custodian agrees to send you a statement, at least quarterly, indicating all
      amounts dispersed from your account including the amount of the advisory fee paid directly to
      our firm.

    • The client may terminate the advisory agreement within 5 business days without fee or penalty.

You may terminate the portfolio management agreement upon 30-days' 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.

We encourage you to reconcile our invoices with the statement(s) you receive from the qualified
custodian. Please keep in mind that billable account values reflected on the quarterly client fee

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invoices may not always mirror the account value reflected on the Raymond James account statement
due to dividends and/or interest being earned that have not yet been credited on the month end
account statement.

Separately Managed Accounts - Raymond James Asset Management Services (“RJ AMS”)

The fees for separately managed accounts through RJ AMS (as described above in the section titled
“Separately Managed Accounts through Raymond James”) include two components: our investment
advisory fee and the Raymond James program fee.

Investment Advisory Fee: Our investment advisory fee is negotiated at the beginning of the client
relationship based on client circumstances. It will not exceed 1.5% annually. The annual investment
advisory fee will be billed and payable quarterly in arrears based on the value of your account on the
last day of the quarter.

Program Fee: The Raymond James program fee includes a Raymond James administration fee and
the underlying manager’s portfolio management fee. The program fee will be charged by Raymond
James Billing Services quarterly in advance based on the value of your account on the first day of the
quarter. The current fee schedule for the AMS programs that we recommend are as follows:

                                   RJCS* Program Fee            0.50%
                                   OSM Program Fee**            0.55%

* Raymond James Consulting Services Program
** Outside Manager Program Fee may be different as each manager’s fee is negotiated with Raymond
James at the time the account is opened.

Clients may also incur charges for other account services provided by RJA not directly related to the
execution and clearing of transactions including, but not limited to, IRA custodial fees, safekeeping
fees, or courtesy transfers of securities fees.

RJA negotiates with portfolio manager the management fee payable to portfolio manager, based on
factors including, but not limited to, the portfolio manager’s assets under management in the RJCS
program, average number of portfolio holdings, average annual turnover, anticipated sales and
administrative service levels, among others.

When an account is opened, the asset-based fees are prorated for the number of days in the initial
billing period. The Program Fee, which is billed in advance, will be based on the initial contribution.
The Investment Advisory Fee, which is billed in arrears, will be based on the account value at the end
of the initial quarter. Thereafter, the quarterly asset-based fees are paid as described above.

The client authorizes and directs RJA, as Custodian, to pay the investment advisory fee to us from the
client’s account upon our instruction as to the amount of the investment advisory fee. The client further
requests that the Custodian provide client with an account statement, at least quarterly, which shows
all amounts disbursed from client's account, including the advisory and program fees.

The client’s account statement will show the amount of the asset-based fee, the value of the assets on
which the fee was based, and the manner in which the fee was calculated. Should the client transfer
management duties from one portfolio manager to another portfolio manager within RJ AMS
platforms, any prepaid asset-based fees will be reimbursed for the period not utilized by the previous
...

Item 7 Types of Clients
We offer investment advisory services to individuals, pension and profit sharing plans, trusts,
estates corporations and other business entities.

In general, we do not require a minimum dollar amount to open and maintain an advisory account;
however, we have the right to terminate your Account if it falls below a minimum size which, in our
sole opinion, is too small to effectively manage. We may, in our discretion, 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.

For Raymond James services there is generally a minimum investment of $100,000 for all equity and
balanced accounts, and $200,000 for most fixed income accounts, although smaller accounts may be
accepted based on the specific circumstances of an account.

The above minimums only apply to the outside money manager program sponsored by Raymond
James.

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