Financial Concepts Unlimited Inc

Fees and Compensation

We offer our services on a fee-only basis. Our fee is calculated based upon the
market value of the assets in your account on the last day of the previous quarter.

When margin is used as an element of cash management or is a strategic element of
our planning and portfolio management, such accounts are also billed on the total
asset value in the account at the end of each quarter. In these instances, margin loan

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balances do not reduce the billable account value. The total value of assets, and
therefore the billable account value, will exceed the total net value of the account if
there is a margin loan balance.

Broker-dealers and other financial institutions that hold client accounts are referred to
as custodians (“custodian/ broker-dealer”). Your custodian/broker-dealer determines
the values of the assets in your portfolio. You must authorize us in writing to have
the custodian/broker-dealer pay us directly by charging your asset management
account. One-fourth of the annual fee is charged each calendar quarter.

Fees for the initial quarter are based on the value of your cash and securities on the
date the custodian/broker-dealer receives them and are pro-rated based upon the
number of calendar days in the calendar quarter that our agreement is in effect. If
Client invests additional amounts in, or withdraws a partial amount from, any
Account after the inception of a calendar quarter, the quarterly Fee will be
recalculated and pro-rated as of the day of the additional investment or withdrawal.

Asset Allocation Program Fees

The following schedule outlines our annual fees. All fees are negotiable at our sole
discretion. Such negotiations are based upon account size, complexity, prior
relationships, and related account holdings.
                      Assets Under Management         Advisory Fee

                      $0 to $499,999                 1.40 - 2.00%
                      $500,000 to $999,999           1.10 - 1.75%
                      $1,000,000 to $1,999,999       1.00 - 1.50%
                      $2,000,000 and Above            negotiable

Variable Annuity Sub-Account Management Fees

You pay an advisory fee of 1.25% per annum regardless of account size.

Financial Planning Fees

When assets are not held under our management, financial planning services fees are
charged at a rate of $300 per hour. Fees are negotiable at our sole discretion and are
based upon the complexity and level of services provided and the experience and
qualifications of our advisory representative. Typically, you are invoiced monthly or
quarterly for time that we spend as we agreed upon. You are given an estimate of the

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amount of time that we anticipate is needed to provide the services you request.
Should additional time be needed, we will notify you.

You are advised that fees for financial planning are strictly for financial planning
services. Therefore, you will pay fees and/or commissions for additional services
obtained, such as asset management, or products purchased, such as securities or
insurance. However, your first-year asset management fee will be reduced by the
amount of the financial planning fee if you choose to become an asset management
client of FCU.

Consulting Fees

Fees are negotiable at our sole discretion and are based upon the complexity and level
of services provided and the experience and qualifications of our advisory
representative. Fees are charged a flat rate that ranges from zero to $1,000 annually.

Additional Fee Information

Your custodian/broker-dealer provides you with statements that show the amount
paid directly to us. You should review your custodian/broker-dealer’s statement and
verify the calculation of our fees. Your custodian/broker-dealer does not verify the
accuracy of fee calculations.
In addition to our fee, you are required to pay other charges, when applicable, such as:
  custodial fees,
  brokerage commissions,
  transaction fees,
  SEC fees,
  internal fees and expenses charged by mutual funds, exchange traded funds
    (“ETFs”), and variable annuities, as well as
  other fees and taxes on brokerage accounts and securities transactions.

Mutual fund companies, ETFs, and variable annuity issuers charge internal fees and
expenses for their products. These fees and expenses are in addition to any advisory
fees charged by us. Complete details of these internal fees and expenses are explained
in the prospectuses for each investment. You are strongly encouraged to read these
explanations before investing any money. You are also encouraged at any time to ask
us questions you have about fees and/or expenses.

If you purchase mutual funds through the custodian/broker-dealer, you may pay a
transaction fee that would not be charged if the transactions were made directly

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through the mutual fund company. Also, mutual funds held in accounts at brokerage
firms may pay internal fees that are different from funds held at the mutual fund
company.

While you may purchase shares of mutual funds directly from the mutual fund
company without a transaction fee, those investments would not be part of our
advisory relationship with you. This means that they would not be included in our
investment strategies, investment performance monitoring, or portfolio reallocations.
Please be sure to read the section entitled “Brokerage Practices,” which follows later
in this brochure.

You must pay our advisory fees in advance of receiving our services. Should you
terminate the advisory agreement we have entered into within five (5) business days
from the date the agreement is executed, you will receive a full refund of any fees
paid.

Should either one of us terminate the advisory agreement we have entered into before
the end of a billing period, any unearned fees that were deducted from your account
will be returned to you by us. The amount refunded to you is calculated by dividing
...

Types of Clients

We provide advisory services to individuals, high net worth individuals, trusts,
businesses, and pension plans.

Methods of Analysis, Investment Strategies and Risk of Loss

We select specific investments for your portfolios through the use of fundamental and
technical analysis. We also use model portfolios of mutual funds, exchange traded
funds (ETF’s), and variable annuity sub-accounts based on the information, research,
asset allocation methodology and investment strategies of various institutional
investment strategists.

Fundamental analysis is a method of evaluating a company that has issued a security
by attempting to measure the value of its underlying assets. It entails studying overall
economic and industry conditions as well as the financial condition and the quality of
the company’s management. Earnings, expenses, assets, and liabilities are all
important in determining the value of a company. The value is then compared to the
current price of the issuing company’s security to determine whether to purchase, sell
or hold the security.

Technical analysis is a method of evaluating securities by analyzing statistics generated
by market activity, such as past prices and volume. Technical analysts do not attempt
to measure a security's intrinsic value, but instead use charts and other tools to
identify patterns that can suggest future performance.

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Charting involves identifying patterns that can suggest future activity in price
movements. A chart pattern is a distinct formation on a stock chart that creates a
trading signal or a sign of future price movements. Chartists use these patterns to
identify current trends and trend reversals to trigger buy and sell signals. Some of the
chart types we may utilize are Line Charts, Bar Charts, Candlestick, and Point and
Figure.

Our investment strategies may include long-term and short-term purchases and sales,
and the use of margin. You may place reasonable restrictions on the strategies to be
employed in your portfolio and the types of investments to be held in your portfolio.
However, these should be discussed with your advisor for suitability.

All investments involve risks that can result in loss:
  amortization of principal,
  a reduction in earnings (including interest, dividends and other distributions), and
  the loss of future earnings.
Additionally, these risks may include:
  market risk,
  interest rate risk,
  issuer risk, and
  general economic risk.

Although we manage your portfolio in a manner consistent with your risk tolerances,
we cannot guarantee that our efforts will be successful. You should be prepared to
bear the risk of loss.

You must also be aware that the use of margin generally increases a strategy’s risk. It
is possible to lose all of the principal you invest, and sometimes more. In a cash
account, your risk is limited to the amount of money that you have invested. In a
margin account, your risk includes the amount of money invested plus the amount
that has been loaned to you, with interest.

Transactions in the account, account reallocations and rebalancing may trigger a
taxable event for you, with the exception of IRA accounts, 403(b) accounts and other
qualified retirement accounts. Additionally, frequent trading can affect investment
performance, particularly through increased brokerage and other transaction costs and
taxes.

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