Grace Capital Management LLC

Item 5. Fees and Compensation

Compensation for Our Advisory Services

Comprehensive Portfolio Management:

GCM charges an annual fee of 1.00% and service fee of .10%. Depending on the account size, fees may
be discounted and are negotiable. Therefore, clients with similar assets under management and
investment objectives may pay higher or lower fees than other clients. Our firm’s fees are billed on a
pro-rata annualized basis monthly in advance based on the value of your account on the last day of
the previous month. In rare cases, we will agree to directly bill clients. Fees will generally be
automatically deducted from your managed account through a qualified custodian. As part of this
process, Clients understand the following:

    a) The client’s independent custodian sends statements at least quarterly showing the market
       values for each security included in the Assets and all account disbursements, including the
       amount of the advisory fees paid to our firm,
    b) Clients will provide authorization permitting our firm to be directly paid by these terms. Our
       firm will send an invoice directly to the custodian, and
    c) If our firm sends a copy of our invoice to the client, legend urging the comparison of
       information provided in our statement with those from the qualified custodian will be
       included.

ADV Part 2A – Firm Brochure                     Page 6                            Grace Capital Management, LLC

For clients who do not want the Comprehensive Portfolio Management service and only want
financial planning/financial consulting services, our firm may charge subscriptions fees – that is, fees
charged for initial and continual advice regarding financial, income tax, estate, family and risk
management goals and objectives.

             Level            Frequency     Amount Per           Annualized
                                            Frequency               Fee
         Executive            Quarterly       $5,000              $20,000
        Family Office         Monthly         $5,000              $60,000

Executive: Full audit of financial picture, quarterly reviews, and evaluation of strategic changes. This
includes investment planning, insurance planning, tax planning, retirement planning, high-level
business planning, and high-level estate planning.

Family Office: Everything from “Executive” plus business design and creation, business operations,
succession planning, systematized cash flow operations, and detailed estate planning.

Financial Planning and Consulting Services:

Our fixed financial planning fees are calculated and charged through a negotiated fixed subscription
fee (typically assessed monthly or quarterly), starting at $5,000 per month and may be higher with a
fee of up to $100,000 per year based on the complexity and unique needs of each client. Fixed
financial planning fees are paid 100% in advance, but never more than six months in advance. Client
may terminate the Financial Planning Services without penalty upon written notice for future
assessed payment periods, or as set forth in the Client Agreement. Thereafter, client may terminate
the Financial Planning Services upon written notice and the prorated portion of the fixed financial
planning fees collected in advance will be refunded to the client based on the prorated amount of
work completed at the point of termination.

GCM charges an hourly fee of $500 per hour when a client is interested in a one-time engagement
that does not include ongoing financial advice and/or asset management services. The hourly rate is
negotiable at the discretion of the GCM advisor and handled on a case-by-case basis, depending on
the complexity and level of service required. The hourly fee would be assessed when it is in the best
interest of the client, based on their desired level of service. Services include: a Net Worth Review;
Cashflow & Spending Analysis; Monte Carlo Simulation; Recommendations for Retirement, Taxes,
Investing, Insurance, Business Planning, and Estate Planning; and a Tax Return Review. Fees are non-
refundable and paid, as accrued, on a monthly basis until engagement is complete.

Selection of Third- Party Advisory Services:

We receive compensation pursuant to the agreements with the Third-Party Advisor for introducing
Clients to the Third-Party Advisor and for certain ongoing services provided to Clients. This
compensation, which is disclosed to the Client in a separate disclosure document provided by the
Third-Party Advisor, is typically equal to a percentage of the investment advisory fee charged by that
Third-Party Advisory Program or a fixed fee. The advisory fee paid to us from the Third-Party Advisor
shall be negotiable in certain circumstances but shall never exceed the amount in our firm’s published
fee statement. We disclose that all Third-Party Advisors will be appropriately licensed with the
applicable State(s).

ADV Part 2A – Firm Brochure                    Page 7                           Grace Capital Management, LLC

The separate written disclosures you need to be provided will include a copy of the Third-Party
Advisor’s Form ADV Part 2, all relevant Brochures, a Solicitation Disclosure, Statement detailing the
exact fees we are paid, and a copy of the Third-Party Advisor’s privacy policy. The Third-Party
Advisor we recommend will not directly charge you a higher fee than they would have charged
without us introducing you to them.

Third-Party Advisors establish and maintain their own separate billing processes which we have no
control over. In general, they will directly bill you and describe how this works in their separate
written disclosure documents.

Other Types of Fees & Expenses

Non-Wrap fee 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 that the trades are
...

Item 7. Types of Clients and Account Requirements

We have the following types of clients:

    •    Individuals and High Net Worth Individuals,
    •    Trusts, Estates or Charitable Organizations,
    •    Pension and Profit-Sharing Plans,
    •    Corporations, limited liability companies and/or other business types.

We require a minimum account balance of $1,000,000 for our Comprehensive Portfolio Management
service. At our discretion, we will consider waiving the minimum account balance requirements.
Specifically, we may combine the account values of family members living in the same household to
determine the account balance. For example, we may combine account values for you and your minor
children, joint accounts with your spouse, and other types of related accounts. Combining account
values will increase the asset total, which could result in meeting the minimum account balance. In
addition, clients should refer to the independent investment adviser’s disclosure document for
information on minimum account size requirements or any other conditions for managing or
maintaining an account.