Capital Endurance Group Inc

FEES AND COMPENSATION (Item 5)

Advisory Fees
  We earn fees and compensation by implementing comprehensive wealth management strategies and providing
  limited stand-alone financial planning services. Our fees for services are as follows:
    1.   Comprehensive Wealth Management Services
                                           Assets
                                   Under Management                    Rate Applied
                             First $0 - $500,000                          1.50%
                             Next $500,001 - $1,000,000                    1.00%
                             Next $1,000,001 - $5,000,000                  0.75%
                             Next $5,000,001 and over                      0.55%

                                             Sample Fee Calculation
                                            Investments of $3,500,000
                                                $ 500,000 @1.50%
                                               $1,000,000 @1.00%
                                               $2,000,000 @0.75%
                                    Approx. Annualized Blended Rate of 0.93%
                                    Annual Fee $32,500 | Quarterly Fee $8,125
    Our comprehensive wealth management fee schedule is negotiable at our sole discretion. The final fee is
    outlined in our investment management agreement. Additionally, we reserve the right to reduce management
    fees based on specific criteria we deem pertinent (e.g., preexisting relationships, related accounts). Please
    review the Types of Clients section for details regarding our minimum investment requirements.
    2. Stand-Alone Limited Engagement Financial Planning Services
    Our fixed fees for stand-alone limited engagement financial planning services range from $2,000 to $10,000,
    with a minimum fee of $2,000. Beyond the minimum, our fees are negotiable, and the final fee is detailed in our
    financial planning agreement.
    Our fee assessment considers qualitative factors such as life stage, the complexity of the client’s financial
    situation, whether the written financial plan is comprehensive or focuses on a specific planning matter (e.g.,
    consumption and debt planning only or retirement benefits optimization only), the client’s requests and needs,
    and the level of detail required for the financial plan or planning report.
    Upon engagement for stand-alone limited financial planning, clients receive a best-efforts advisory fee estimate.
    We provide this estimate for client approval and acceptance. The best-efforts fee estimate reflects the most
    advantageous fee structure based on the scope of services, the complexity of the client’s financial matters, or
    the client’s requests and needs. An initial payment of fifty percent (50%) of this estimate is due, with the
    remaining balance payable upon delivery of the financial plan or planning report. A written financial plan or
    planning report will be delivered within three (3) months from the commencement of the engagement.

CEG BROCHURE                                                                                                      5

                                                                              Capital Endurance Group, Inc.
Billing Procedures
   Our billing procedures for advisory services are as follows:
    1. Billing for Comprehensive Wealth Management Services
    Our comprehensive wealth management services fee is an annual asset-based advisory fee. Advisory fees are
    due and payable quarterly in advance (at the beginning of the billing period). We calculate advisory fees using
    the aggregate value of all accounts for each client (e.g., household). Upon signing our investment management
    agreement, clients provide written authorization to have advisory fees deducted directly from their specified
    advisory account(s).
    We send the advisory fee calculations to the account custodian electronically, no later than one week after the
    beginning of each calendar quarter. Advisory fee calculations are based on the value of assets in the account(s),
    including cash equivalents, at the closing price on the last trading day of the calendar quarter, as listed on a
    national securities exchange or the principal market where the securities are traded and supplied by the account
    custodian. Additionally, billing valuations for fixed income securities often include accrued interest.
    Furthermore, margin interest, if applicable, will accrue monthly.
    It is also important to note that due to differences in valuation dates (trade date vs. settlement date), application
    of credits for accrued income, and/or accrued interest, if applicable, asset values used for advisory fee billing
    can differ from the asset values shown on the account custodian’s statement. Please contact us if you have
    questions regarding advisory fee billing calculations.
    Additionally, if we recommend alternative investments, advisory fees are assessed in accordance with the
    comprehensive wealth management services fee schedule outlined in the Fees and Compensation Section. The
    value of any alternative investment, which generally reflects the initial purchase (or the most recent valuation
    reported by the issuer or account custodian), is included in the value of a client’s aggregate “assets under
    management” (i.e., included with the value of all advisory accounts) when calculating advisory fees.
    2. Billing for Stand-Alone Limited Engagement Financial Planning Services
    Our fees for stand-alone limited engagement financial planning services are billed in advance. Upon
    engagement for stand-alone financial planning services, we provide clients with a best-efforts advisory fee
    estimate based on the anticipated services for review and approval. Upon the client’s acceptance of the
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TYPES OF CLIENTS (Item 7)
   We generally provide investment advice to individuals and high net worth individuals.
   We require a minimum investment value of $5,000,000 for comprehensive wealth services engagements.
   Nonetheless, we reserve the right to waive the minimum investment requirement based on other criteria we
   deem pertinent (e.g., preexisting relationships, related accounts, the anticipation of additional assets within the
   next twelve (12) months, etc.). Therefore, some clients may have investment values below the stated minimum.
METHODS OF ANALYSIS, INVESTMENT STRATEGIES, AND RISK OF LOSS (Item 8)

Methods of Analysis and Investment Strategies
  We have experience researching and investing in all types of securities and asset classes, including stocks,
  mutual funds, exchange traded funds, convertible securities, U.S. government securities, corporate bonds,
  other fixed-income securities, warrants, commodities, currencies, and real estate related assets.
   Tenets of Investment Philosophy
   Utilizing advances in Modern Portfolio Theory (“MPT”), we attempt to reduce uncompensated risks in
   portfolios by selecting asset classes whose risks increase expected returns over time. We determine asset
   location based on the tax sensitivity of the underlying security and the availability of tax-favorable investment
   vehicles. We invest in low-cost and low-turnover securities that focus on individual asset classes with little or
   no style drift. We typically recommend mutual funds and exchange-traded funds for client portfolio holdings,
   and, occasionally, if suitable, fixed income securities, options, and alternative investments.
   We generally implement advice using a range of investment strategies, including long-term purchases, short-
   term purchases, active trading, and short sales. We may increase the number and extent of a portfolio’s “long”
   positions by borrowing (e.g., purchasing securities on margin). Quantitative analytics are utilized in some of
   our investment activities to select securities or manage investment risk. Also, if and when implemented, our
   option strategies include covered options, uncovered options, spreads, and straddles.
CEG BROCHURE                                                                                                      7

                                                                            Capital Endurance Group, Inc.
   As mentioned above, depending on a client’s specific financial goals and circumstances, we may also
   recommend unaffiliated third-party alternative investments to augment a client’s portfolio holdings. Some
   alternative investments include liquid alternatives, such as publicly traded real estate investment trusts, and
   illiquid alternatives, such as interests in private placement offerings, hedge funds, or private equity funds. Our
   due diligence processes for alternative investments include, but are not limited to, reviewing the issuer’s
   offering, pricing criteria, financial strength, reputation, investment strategy, performance, liquidity, and
   reporting methodologies, among other factors.
   When considering alternative investments as a holding for client portfolios, we review a client’s financial
   circumstances, net worth, annual income, and overall investment goals. Moreover, we generally limit
   alternative investment holdings to ten percent (10%) or less of a client’s portfolio holdings. Alternative
   investment strategies are only recommended to clients who meet the financial parameters of an accredited
   investor or qualified client. Clients are not obligated to consider investments in alternative strategies.

Material Risks of Methods of Analysis and Investment Strategies
  INVESTING IN SECURITIES INVOLVES A RISK OF LOSS THAT CLIENTS SHOULD BE PREPARED TO
  BEAR. CLIENTS MAY LOSE ALL OR A SUBSTANTIAL AMOUNT OF THEIR INVESTMENT.
   Notwithstanding the method of analysis or investment strategy employed, there is no guarantee that portfolio
   holdings or investment assets will achieve the desired investment objectives. Clients can lose money by
   investing based on our strategies, and the client alone will bear such losses. The value of a client’s portfolio
   holdings may be affected by one or more of the following risks, any of which could cause a portfolio’s return,
   price of shares, or yield to fluctuate:
   v General Market Risk. Markets fluctuate, moving up or down based on news releases or, at times, for no
     apparent reason. This uncertainty means that, at times, the price of specific securities may increase or
     decrease without a discernible reason and may take a while to recover any lost value. Adding additional
     securities to the portfolio might not lower this risk, as all securities can be affected by market swings.
     Market fluctuations will ultimately affect a client’s portfolio holdings.
   v Quantitative Tools Risk. Some of our investment techniques incorporate or rely upon quantitative
     models. There is no guarantee that these models will generate accurate forecasts, reduce risks, or otherwise
     produce the intended results. We review the accuracy of our models periodically.
   v Interest Rate Risk. Changes in interest rates will affect the value of fixed income investment holdings. The
     value of fixed income securities is more inclined to decrease as interest rates increase. This decrease in
     value may not be offset by income from new investments or other investment holdings. Interest rate risk
     is generally greater for fixed income securities with longer maturities.
   v Credit Risk. Generally, the degrees of risk for fixed income assets are reflected in their credit rating. Issuers
     or guarantors of investment assets may be unable or unwilling to make timely payments of interest or
     principal or honor their obligations otherwise. The issuers or guarantors may default, resulting in a loss of
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