CornerStone Capital Inc

Item 5:        Fees and Compensation
Compensation provided to Cornerstone is negotiable at Cornerstone’s discretion and varies, but
typically, Cornerstone charges an annual fee of 1.0% of the value of a client account up to $5 million;
0.7% of the value of a client account between $5 million and $20 million; and 0.4% of the value of
the client account over $20 million. Cornerstone charges a minimum annual fee of $5,000 for
investment management services. The fees are negotiable at Cornerstone’s discretion, and certain
clients such as nonprofit and long-standing clients of Cornerstone may pay lower fees. Clients may
select how they wish to pay Cornerstone for the advisory services. Cornerstone can directly debit
advisory fees from the client’s account or invoice the client for the advisory fee. Regardless of the
method chosen, Cornerstone sends each client a statement showing the amount of assets in which the
advisory fee is calculated along with the fee that has been debited from the client’s account or due to
Cornerstone.

Fees are typically paid in quarterly installments at the end of each calendar quarter based on the net
market value of the client’s account at the close of the market on the date the fee accrues and becomes
payable. Regarding fixed income, price and accrued income may differ between the custodian and
Cornerstone’s portfolio management system, which may cause a variation in market value.

A client may terminate an individually managed account by giving 30 days’ written notice. In most
cases the pro-rata portion of the advisory fee owed through the date of termination are charged to the
client.

Cornerstone may recommend that clients invest in mutual funds. All fees charged by Cornerstone for
investment supervisory services will be separate and distinct from the fees and expenses charged by
mutual funds to their investors. These fees and expenses are described in each mutual fund’s
prospectus. These fees will generally include a management fee, other expenses, and a possible
distribution fee. Clients are also responsible for bearing all trading costs and custodial fees. For
additional information about brokerage, please see the “Brokerage Selection” section of this brochure.

Item 7:         Types of Clients
Cornerstone primarily provides customized investment management services to individuals,
associated trusts, estates, or charitable organizations, pension and profit-sharing plans, and other
corporations or business entities.

Cornerstone generally requires a minimum investment of $5 million to open a separately managed
account. This minimum may be waived by Cornerstone at its discretion.