Core Financial Partners Inc

Item 5. Fees and Compensation

We are required to describe how we are compensated for our services. Our fees are negotiable as
described below.

A. Description of how we are compensated for our advisory services provided to you.

   (i) Financial planning and consulting:

       We charge a flat fee for financial planning and consulting services. The total estimated
       fee, as well as the ultimate fee that we charge you, is based on the scope and complexity
       of our engagement with you. Flat fees generally range from $1,800 to $50,000 on an
       annual basis. Our hourly rate is $450 and is used for the purposes of calculating pro-rated
       flat fees in the case of termination. This fee is paid either on a monthly or semi -
       annual basis in advance.

   (ii) Asset Management:

       Assets under management               Annual percentage of assets charge*:
       $0 to $10,000,000                                       1.00%
       $10,000,000 to $20,000,000                              0.90%
       $20,000,000 to $50,000,000                              0.75%
       Above $50,000,000                                       0.60%

       * Some accounts are under different fee schedules honoring prior agreements. Our standard
       fee schedule is negotiable based on a number of factors, which include but are not limited
       to “grandfathered” accounts, related accounts, and other structures that we consider in
       special situations. Our firm’s asset management fees are billed on a pro-rata annualized
       basis monthly in advance based on the value of your account on the last day of previous
       month.
       The value of client investments in the various Trojan Storage and Jett Ventures funds
       outlined in Item 4.b.(ii) above are included when calculating the management fee paid to
       Core Financial. Additionally, client investments in other third-party private/alternative
       investments recommended by Core Financial are included when calculating the
       management fee paid to Core Financial. Investments in private placements/alternative
       investments are billed on a pro-rata annualized monthly basis in advance based upon the
       value of the investment/account on the last day of the previous month. In the case of all
       private placements/alternative investments, valuations are based upon information received
       from the respective managers of the investments.

B. Description of whether we deduct fees from clients’ assets or bill clients for fees incurred.

   (i) Financial planning and consulting:

       Fees for financial planning and consulting are either a) payable on a monthly basis if auto-

       debited from a client’s account, or b) payable semi-annually if not auto-debited.
   (ii) Asset management:

       Fees will generally be automatically deducted from your managed account(s)*. As part
       of this process, you understand and acknowledge the following:

       a) You provide authorization permitting us to be directly paid by these terms, including
          automatically deducting fees from your accounts with independent custodians to cover
          asset management fees related to your investments that are covered by your participation
          in our wrap asset management programs, including accounts with third-party managers;
          and
       b) Your independent custodian sends statements at least quarterly to you showing all
          disbursements from your account, including the amount of the advisory fees paid to us.

       *In rare cases, we will agree to directly bill clients.

C. Description of any other types of fees or expenses clients may pay in connection with our
   advisory services, such as custodian fees or mutual fund expenses.

   Wrap fee clients will receive our Form ADV, Part 2A, Appendix 1 (the “Wrap Fee Program
   Brochure”). Wrap fee clients will not incur transaction costs for trades initiated by us;
   however, clients may incur transaction charges for any trades the client places themselves
   directly with the broker. Clients will pay some or all of the following separately incurred
   expenses, which we do not receive any part of: charges imposed directly by a mutual fund,
   index fund, or exchange traded fund which shall be disclosed in the fund’s prospectus (i.e.,
   fund management fees and other fund expenses), mark-ups and mark-downs, spreads paid
   to market makers, wire transfer fees and other fees and taxes on brokerage accounts and
   securities transactions. More information about this is disclosed in our separate Wrap Fee
   Program Brochure.

   The use of unaffiliated third-party managers and private placements may incur fees that are
   separate and in addition to the asset management fees we charge. For more information
   regarding these separate fees, please review the third-party manager’s Form ADV, Part 2 and
   the applicable private placement memorandum.

   Mr. Koudsi owns a portion of Counterpoint Mutual Funds, LLC which is the adviser to the
   various Counterpoint fixed income and equity funds. Mr. Koudsi earns a portion of the funds’
   management fee. Core Financial’s advisers recommend investments in the funds which
   represents a conflict of interest. To mitigate the conflict, Core Financial will reduce the asset
   management fee for any clients who invest in Counterpoint-branded funds by the amount of
   any fees received from the Counterpoint-branded funds (fee offset.)

D. We must disclose if client’s advisory fees are due in advance.

   We charge our fees monthly in advance. In the event that you wish to terminate our services,
   we will refund the unearned portion of our advisory fee to you. For financial planning and
   consulting clients, we will calculate our earned fee on the basis of $450 per hour and refund

   any portion of the flat fee in excess of fees earned. You need to contact us in writing and
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Item 7. Types of Clients & Account Requirements

We currently have the following types of clients:
  • Individuals and high-net-worth individuals;
  • Pension and profit-sharing plans;
  • Corporations, limited liability companies and/or other business types; and
  • Insurance companies.

Our requirements for opening and maintaining accounts or otherwise engaging us:
   • We generally require a minimum account balance of $500,000 for our asset management.
       Generally, this minimum account balance requirement is not negotiable and would be
       required throughout the course of the client’s relationship with our firm. We will negotiate
       the minimum account balance at our discretion, such as when a client anticipates being
       able to meet the minimum account balance through additional contributions to the account
       within a relatively short period of time.