Generation PMCA Corp

ITEM 5 – FEES AND COMPENSATION
For portfolio management services, GPMCA charges a base management fee and performance-based fees, all
as stipulated in our investment counsel agreement.

Our standard base management fee for new clients is 1.25% annually for growth accounts and 1.0% for income
accounts. Both are based on the net asset value of the account and are deducted from client accounts
quarterly in arrears.

Performance fees are applicable only to “qualified clients” as defined under the Investment Advisers Act of
1940, as amended, and are only charged on accounts with growth objectives. GPMCA’S standard performance
fee for new clients is equal to 20% of any appreciation in the net asset value of a client account that exceeds a
hurdle rate of 6% per year. The performance fee is calculated after deducting the base management fee and
other expenses, including commissions, from the net asset value and adjusting for contributions and
withdrawals from the account. Any amount of performance less than 6% is carried forward to the next year,
but not to any subsequent year. Performance fees are payable annually at the end of each calendar year, but
are accrued for interim reporting purposes. Performance-based fee clients should understand that GPMCA will
receive performance fee compensation with regard to unrealized appreciation as well as realized gains in the
client’s account. Further, unrealized gains and losses are determined based on GPMCA’s valuation policies,
including: (i) Securities listed on a recognized public securities exchange are valued for reporting purposes
based on available public market quotations. (ii) Securities for which market quotations are not readily
available, including those not listed on any recognized public securities exchange are initially recorded at cost,
being the fair value at the time of acquisition. Thereafter, where there are material changes or events that

impact an issuer, securities may be valued at their fair value, as determined by GPMCA management. In the
case of unlisted securities (e.g., warrants, convertible bonds and debentures) which are exchangeable into
common shares listed on a recognized public securities exchange, such securities may be valued at their fair
value based on changes in the underlying common share price. Where we indicate on your account statement
that market value is an estimate, the value may be based on GPMCA management’s judgment and the
estimated value may not be realized or realizable as it may not necessarily reflect the true market value of the
security. In these instances, all pricing must be approved by GPMCA’s senior management.

Client fees may be negotiable at our discretion, depending on a number of factors, such as breadth of advisory
services offered, amount of assets managed and overall relationship between GPMCA and the client involved.

GPMCA’s fees do not include other costs and expenses incurred in connection with the operation of managed
accounts. These may include: safekeeping, service or custodial charges that may be charged by brokers,
custodians, banks or trust companies; interest charges on funds borrowed, if any, on behalf of a client; and
commissions or other charges for brokerage and banking services. Currently, GPMCA’s managed accounts pay
commissions but not custody fees (other than IRA accounts) in respect of an account opened by GPMCA in the
client’s name with its affiliated investment dealer, Generation IACP Inc. (“GIACP”), for which the cash and
securities are custodied by GIACP’s carrying broker, Fidelity Clearing Canada ULC (see Item 10 below for more
details on GPMCA’s relationship with GIACP); GPMCA’s IRA accounts pay custody fees to the custodian of the
IRA account. Clients invested in pooled or mutual funds may pay the applicable fees and expenses charged by
such funds. Additional information can be found in “Item 12: Brokerage Practices” further in this document.

ITEM 7 – TYPES OF CLIENTS
We provide discretionary management services to institutions, individuals, trusts, estates, charitable
organizations, corporations and pooled investment vehicles (e.g., hedge funds).

The minimum assets required to open a managed account with us is $500,000. The assets of related
household, family and business accounts may be combined to meet the minimum. The minimum amount may
be waived at our discretion.