GEN Financial Management Inc

5 – Fees and Compensation

Client accounts are charged a percentage of the assets under management. The specific
manner in which fees are charged by us is established in your written agreement with us.
Fees are billed on a quarterly basis, in advance, and deducted from your assets at the
custodian. Management fees will be prorated for each capital contribution and withdrawal
made during the applicable calendar quarter. Accounts initiated or terminated during a
calendar quarter will be charged a prorated fee. Upon termination of any account, any
prepaid, unearned fees will be promptly refunded.

Graduated Billing Schedule

              Annual Rate                                        Asset Range
                 1.30%                    for                   $0 – $500,000
                 0.85%                    for               $500,000 – $1,500,000
                 0.70%                    for             $1,500,000 – $2,500,000
                 0.60%                    for             $2,500,000 – $3,500,000
                 0.50%                    for              $3,500,000 - $5,000,000
                 0.40%                    for              $5,000,000 - $7,500,000
                 0.30%                    for             $7,500,000 - $10,000,000
               Negotiated                 for              $10,000,000 and above

For example, the annualized fee for an account of $1,000,000 would be $10,750: $500,000
x 1.3% ($6,500) plus $500,000 x .85% ($4,250) = $10,750. The quarterly fee would be
$10,750 divided by 4, or $2,687.50. In addition, an annual fixed fee of $1,000 ($250 per
quarter) will be applied to accounts with less than $500,000 in assets under management.

Fixed fees may be charged for written financial plans, which range from $1,500 to $15,000,
depending on the complexity of your financial situation.

Our fees are exclusive of transaction fees and other related costs and expenses which are
incurred by you. You may incur certain charges imposed by custodians, brokers, third party
investment advisors and other third parties such as fees charged by managers, custodial
fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and
electronic fund fees, and other fees and taxes on brokerage accounts and securities
transactions. Mutual funds and exchange traded funds also charge internal management
fees, which are disclosed in a fund’s prospectus. We do not receive any portion of these
commissions, fees, or expenses charged by third parties.

If client terminates the Agreement, all prepaid fees will be refunded on a prorated basis
within 3 weeks of the cancellation of the Agreement.

See also Item 12 – Brokerage Practices, which further describes the factors that we
consider in selecting or recommending broker-dealers for client transactions and
determining the reasonableness of their compensation (e.g. commissions).

7 – Types of Clients

We provide investment advisory services to a select group of executives, business owners,
families and individuals, including high net worth individuals, and to company retirement
plans. Our minimum account size is $500,000, which includes 401(k) accounts and other
company sponsored plans, but this minimum is negotiable by the firm.