GCI Financial Group Inc

Item 5. Fees and Compensation

Description of how we are compensated for our advisory services provided to you.

Asset Management:

        Assets Under Management                   Annual Percentage of Assets Charge

        $0 - $500,000                                       2.00 %
        $500,001 - $1,000,000                               1.25 %
        Over $1,000,000                                     1.00 %

Our fees are negotiable, and we have the ability to reduce our fee schedule for clients on a case by case
basis. We also have the ability to charge a fixed fee in lieu of a fee calculated as a percentage of assets under
management for investment advisory services. Our fixed fees range from $500 to $2,500 depending on a
number of factors and will be negotiable. In addition, we also have the ability to utilize a blended billing
methodology which incorporates both a fixed fee and a fee determined as a percentage of assets under
management for investment advisory services. All fees will be agreed to in advance, and disclosed within
an Investment Advisory Agreement, for each client prior to the commencement of investment advisory
services. In no circumstances will the total fee exceed 3% of the client’s assets under management.

Our firms’ fees are billed on a pro-rata annualized basis quarterly in advance based on the value of your
account on the last business day of the previous quarter. In the event that you wish to terminate our
services, we will refund the unearned portion of our advisory fee to you. You need to contact us in writing
and state that you wish to terminate our services. Upon receipt of your letter of termination, we will
proceed to close out your account and process a pro-rata refund of unearned advisory fees.

Fees will generally be deducted from your managed account*. As part of this process, you understand and
acknowledge the following:

        a) Clients must provide our firm with written authorization permitting direct payment of advisory
           fees from their account(s) maintained by a custodian who is independent of our firm; and
        b) The account custodian sends a statement to the client, at least quarterly, showing all account
           disbursements, including advisory fees.

*In rare cases, we will agree to directly bill clients.

Financial Planning and Consultations:

    We charge on an hourly or flat fee basis for financial planning and consultation services. The total
    estimated fee that we charge you, is based on the scope and complexity of our engagement with you.
    Our hourly fees are $250. Our flat fees range from $500 to $2,500. We require a deposit of fifty-percent
    (50%) of the ultimate financial planning or consultation fee with the remainder of the fee directly billed
    to you and due to us within thirty (30) days of your financial plan being delivered or consultation
    rendered to you. In all cases, we will not require a deposit exceeding $1200 when services cannot be
    rendered within 6 (six) months.

    Either party terminate the financial planning agreement upon thirty (30) days written notice to the
    other by certified or registered mail to the address set forth in the agreement. Unearned fees paid in
    cash will be refunded pro-rata based on the percentage of work completed up to the time of
    termination. All insurance commissions are outside the scope of the financial planning agreement and

    will be considered earned. Non-payment of deposit by you, that is thirty (30) days past due, will also
    constitute termination of the agreement and the responsibilities of our firm to you.

Other types of fees or expenses clients may pay in connection with our advisory services, such as
custodian fees or mutual fund expenses.

Our clients will incur transaction charges for trades executed in their accounts. These transaction fees are
separate from our fees and will be disclosed by the firm trades are executed through. Also, clients will pay
the following separately incurred expenses, of which we do not receive any part: internal charges imposed
directly by a mutual fund, index fund, or exchange traded fund which shall be disclosed in the fund’s
prospectus (i.e., fund management fees and other fund expenses). Please see Item 12 of this Firm Brochure
for information about our Brokerage Practices.

Description of our refund policy and how the amount is determined for the deposit fee for financial
planning.

For our asset management services, we charge our advisory fees quarterly in advance. In the event that
you wish to terminate our services, we will refund the unearned portion of our advisory fee to you. You
need to contact us in writing and state that you wish to terminate our services. Upon receipt of your letter
of termination, we will proceed to close out your account and process a pro-rata refund of unearned
advisory fees based on the date of termination.

For financial planning and consultation services, we often charge a deposit of fifty-percent (50%) of the
ultimate financial planning or consultation fee up front. All prepaid fees are fully refundable with the first
five (5) days of agreement. Thereafter, fees will be refunded on a pro-rated basis based on the percentage
of work already completed.

The fee for financial planning services is determined based upon the complexity of the case and the
amount of time that advisor reasonably expects will be required to fully address the scope of the work
requested by the client.

Commissionable securities sales.

We do not sell securities for a commission, and we are not registered with a broker-dealer.

Item 7. Types of Clients and Account Requirements

We have the following types of clients:

    •   Individuals;
    •   Trusts, Estates or Charitable Organizations;
    •   Pension and Profit Sharing Plans;
    •   Corporations, limited liability companies and/or other business types

Our requirements for opening and maintaining accounts or otherwise engaging us:

   •   We generally require a minimum account balance of $300,000 in order to open an account for
       investment management services. This minimum may be waived, at the firm’s discretion.
   •   We generally charge a minimum fee of $500 for written financial plans. This minimum fee shall be
       negotiable.