Groesbeck Investment Management Corp

Item 5 – Fees and Compensation

For individually managed accounts, fees are calculated based on the agreed upon
percentage of the total market value of assets managed at the end of the prior quarter. The
client is billed in the month following the end of a calendar quarter and no later than mid-
quarter. Fees are payable quarterly at any point of the quarter that the client chooses. The
fee schedule is listed at the end of this Item 5.

The manager does not provide custody of client assets; therefore no custodian or
brokerage fees are included in the firm’s management fee. Clients may choose to be
billed directly and pay the invoice directly or have billing sent to their custodians and
payment made by their custodians. Some client agreements do require billing to the
custodian and payments from the custodian.

If a client pays before the end of the current quarter, and then ceases to be a client, the
firm calculates the amount of fee earned by the firm and rebates the amount unearned to
the client via a check to the client’s custodian with instructions for deposit to the client’s
account. In the event that we cannot send a rebate to the custodian we will remit the
refund directly to the customer at their address of record.

The investment advisory fees we charge are negotiable. Clients and prospects should be
aware that other fees outside of the control of Groesbeck Investment Management shall
be the responsibility of the client. These fees may include but are not limited to:
custodian fees, bank or brokerage charges, trading commissions, taxes, etc. For more
information regarding brokerage practices, please see Item 12.

In wrap programs all fees (asset management, commissions, custodial, etc.) are usually
bundled into one fee that is charged to the client by the sponsoring organization. These
fees are negotiated between the client and the sponsoring organization. Groesbeck
Investment Management does not arrange this fee and only receives a portion of the fee
charged by the sponsoring organization for its portfolio management services.

Groesbeck Investment Management Standard fee schedule:
1% per annum                                           First $10 Million
0.75 % per annum                                       Next $20 Million

0.625% per annum                                             Next $20 Million
0.50% per annum                                              Above $50 Million

Item 7 – Types of Clients

We have various types of clients. We manage money for high net wealth individuals,
trusts, pensions/profit sharing plans, IRAs, endowments, foundations and individual
customers. Our account minimum for individually managed accounts is around $100,000.
In the wrap business, account minimums vary by sponsor, but are generally $100,000 and
may be higher or lower. We may take on accounts for private management under the
$100,000 minimum at our discretion.