Generation Capital Management LLC

Item 5 – Fees and Compensation

GCM charges fees for its investment advisory services that are based on a percentage of the client’s
total assets under management. Fees and account minimums are negotiable based upon certain
criteria (i.e. the dollar amount of assets to be managed, risk level, anticipated future additional assets,
anticipated future earning capacity, related accounts, negotiations with client, etc.) and therefore
may vary by client.

Portfolio Management
The current fee schedule for Asset Management Service is as follows:

                               Fee Schedule for Asset Management:

       Fixed Income        Equity and Balanced
           0.80%                 1.00%      of market value on the first $2,000,000
           0.70%                 0.85%      of market value on the next $3,000,000
           0.50%                 0.65%      of market value on the next $5,000,000
           0.40%                 0.55%      of market value over $10,000,000

The current fee schedule for Cash Management Service is as follows:

                                Fee Schedule for Cash Management

                      0.70%          of market value on the first $2,000,000
                      0.60%          of market value on the next $3,000,000
                      0.40%          of market value on the next $5,000,000
                      0.30%          of market value over $10,000,000

The fact that we charge a different fee rate for different strategies or objectives creates a conflict of
interest in that there is an economic incentive for us to recommend accounts that have a higher fee
rate compared to other types with a lower fee rate. We take steps to manage this conflict of interest
arising from its use of different fee rates/schedules through its code of ethics, whereby GCM and its
investment adviser representatives will not exercise investment discretion with respect to changing
asset classes or investment product types and will only recommend the change of asset classes or
investment products when in the best interest of the client and without regard to the financial interest
of GCM.
For both of the management fee schedules referenced, the fee is typically charged quarterly in
advance. There are some circumstances where we may charge a monthly fee and/or charge in arrears.
There is no minimum fee for portfolio management services.
Aspire, a 403(b) provider through which we have some assets with, calculates the client management
fee based on their client agreement and pays us quarterly in arrears. Pontera Solutions, Inc., the third-
party platform that facilitates the management of held away assets, charges a flat annual subscription
fee of 30 basis points and is included in the asset management fee schedule.
The long-term custody costs associated with the bank custodian utilized by GCM are as follows and
are included in the management fees.

                                      Long Term Custody Costs

                             Annual administrative account fee $400

As stated in the discretionary investment management contract signed by each client, the client or
GCM can terminate the investment management contract with thirty days written notice. The
termination date is thirty days from the date the written notice was received by GCM. During the
thirty-day period, GCM will determine where the client wants the assets delivered or, acting on
client instructions, GCM will sell certain or all assets and deliver cash on termination. Our goal is to
provide the client with an orderly transition of assets. For any clients who have pre-paid fees, the
final fee will be computed from the date of the last fee to the date of termination. GCM will refund
those fees not earned to the client during the thirty-day period. When a client terminates
management services with GCM, the client also terminates the master custody fee arrangements
that GCM has negotiated.

The client’s written agreement with GCM establishes the specific manner in which fees are charged.
GCM typically bills its fees on a quarterly basis, however there are some circumstances where fees
will be charged monthly. Depending on the agreement with a client, accounts with utilized margin
will be billed on the higher-margin value. This presents a potential conflict because GCM earns a
higher fee and has a disincentive to advise clients to reduce or eliminate their margin balance. To
control for this conflict of interest, we recommend the use of margin accounts only when in the best
interest of the individual client. Typically, the use of margin is only recommended if the client has a
valid, personal reason to take a loan on the client’s brokerage account. See Item 8 for some of the
risks associated with margin accounts.

Clients may elect either to (1) authorize GCM to directly debit fees from client accounts or (2) be
billed directly for fees. Accounts initiated or terminated during a calendar quarter will be charged a
prorated fee. GCM will not prorate fees for capital contributions and withdrawals under $1 million
made during an applicable calendar quarter/month. Clients may terminate their investment advisory
agreement upon 30-days’ notice and will incur a pro-rata charge for services rendered through the
30-days after the receipt of the termination notice. If a client notifies their custodian that they are
terminating the custodial account linked to their separately managed account with our firm, GCM will
consider this to constitute a notice of termination. Upon termination of any account, GCM will refund
any prepaid, unearned fees and collect any earned, unpaid fees.

GCM’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which shall be incurred by the client. Clients may incur certain charges imposed by
custodians, brokers, third party investment and other third parties such as fees charged by managers,
...

Item 7 – Types of Clients

GCM provides portfolio management services to individuals, high net worth individuals, retirement
plans, corporations, trusts, estates, charitable institutions, municipal government entities and
foundations. GCM requires a minimum account size of $100,000; however, this requirement can be
waived at GCM’s discretion based upon certain criteria (i.e. the dollar amount of assets to be managed,
risk level, anticipated future additional assets, anticipated future earning capacity, related accounts,
negotiations with client, etc.) and therefore may vary by client.