JCT Investment Counsel Inc

ITEM 5: FEES AND COMPENSATION
Advisory Fees & Billing Practices
We generally divide accounts in three types: Equity, Balanced and Fixed Income, depending on the
general style, which will be further customized using each client’s individual needs. Equity and Balanced
accounts are charged one fee, Fixed Income accounts another as provided in the following schedules:

             Equity and Balanced                                            Fixed Income
Account Value                   Annual Fee                  Account Value                 Annual Fee
$0 - $1,000,000                    1.00%                    $0 - $5,000,000                0.5%
$1,000,000 - $5,000,000            0.75%                    Over $5,000,000               Negotiable
Over $5,000,000                  Negotiable

Clients will be charged 1/4th of the annual fee rate every quarter in arrears, starting the third month-end
after the inception of the relationship. Our fee is based upon the value (market value or fair market value
in the absence of market value, plus any credit balance or minus any debit balance), of your account at the
last business day of that quarter. Clients who become clients on another day than the first day of the
month will be billed a pro-rata fee for the remainder of the quarter.

Under certain limited circumstances, fees may be negotiable.

If you would like to end our advisory relationship, you may do so by providing 7 days written notice.

You may provide authorization for us to deduct our fees directly from your investment account.
Important information about the deduction of management fees:

    •   You must provide authorization for us to deduct fees by initialing the appropriate section of our
        contract.

    •   You will receive a statement from your custodian which shows your holdings.

    •   You are responsible for reviewing the accuracy of the fees being billed, as the custodian will not
        do so.

Other Costs Involved

In addition to our advisory fee shown above, you are responsible for paying fees associated with investing
for your account. These fees include:

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    • management fees for ETFs and mutual funds. These are fees charged by the managers of the ETF
      or mutual fund and are a portion of the expenses of the ETF or mutual fund.

    • brokerage costs and transaction fees for any securities or fixed income trades. These are
      generally charged by your custodian and/or executing broker.

Additional information about brokerage costs and services is provided in “Item 12: Brokerage Practices.”

Conflicts of Interest

Our principal, Jeffrey Thomas, is a registered representative of American Heritage Securities, Inc.
(“AHS”), a broker/dealer. As a registered representative, he receives trailing commissions for some
mutual fund investments that are executed through AHS and him as a registered representative.

Mr. Thomas, our principal, is registered as an insurance agent with various insurance agencies. When
you choose to buy insurance products through Mr. Thomas, he will receive the regular and common
commissions and fees. You will be notified of an approximation of these fees before completing the sale.
You are under no obligation to implement insurance recommendations through Mr. Thomas.

Mr. Thomas will continue to accept commissions as a registered representative and insurance agent when
acting solely in that capacity as distinct from his investment advisory capacity.

ITEM 7: TYPES OF CLIENTS
The vast majority of our clients are individuals.

Generally, we require that you maintain $250,000 under management with us. However, we may waive
that minimum at our sole discretion.