CornerStone Financial Management LLC

Item 5 – Fees and Compensation

The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into one or more
written agreements with the Advisor.

A. Fees for Advisory Services
Investment Management Services
Investment advisory fees are paid quarterly, in advance of each quarter, pursuant to the terms of the investment
advisory agreement. Investment advisory fees are based on the market value of each account under management at
the end of the prior quarter. Investment advisory fees are based on the following schedule:

                 Account Value ($)                          Annual Rate (%)
                 First $250,000                                   1.00%
                 Next $250,000 (Up to $500,000)                   0.75%
                 Next $250,000 (Up to $750,000)                   0.50%
                 Above $750,000                                   0.25%

The investment advisory fee in the first quarter of service is prorated from the inception date of the account[s] to the
end of the first quarter. Fees may be negotiable at the sole discretion of the Advisor. The Client’s fees will take into
consideration each account under management with Advisor. All securities held in accounts managed by Cornerstone
will be independently valued by the Custodian. The Advisor will conduct periodic reviews of the Custodian’s
valuations to ensure accurate billing.

The Advisor’s fee includes any applicable securities transaction and custody fees, and other related costs and
expenses described in Item 5.C below, which may be incurred by the Client. However, the Advisor shall not receive
any portion of these commissions, fees, and costs.

Financial Planning Services
Cornerstone offers financial planning services either on an hourly basis or a fixed engagement fee. Hourly fees range
from $150 to $300 per hour. Fixed fees range from $300 to $5,000. Fees may be negotiable based on the nature and
complexity of the services to be provided and the overall relationship with the Advisor. An estimate for total hours
and/or total costs will be provided to the Client prior to engaging for these services.

B. Fee Billing
Investment Management Services
Investment advisory fees are calculated by the Advisor or its delegate and deducted from the Client’s account[s] at the
Custodian. The Advisor shall send an invoice to the Custodian indicating the amount of the fees to be deducted from
the Client’s account[s] at the beginning of the respective quarter. The amount due is calculated by applying the
quarterly rate (annual rate divided by 365 * days in the quarter) to the total assets under management with
Cornerstone at the end of the prior quarter. Clients will be provided with a statement, at least quarterly, from the
Custodian reflecting deduction of the investment advisory fee. Clients are urged to also review and compare the
statement provided by the Advisor to the brokerage statement from the Custodian, as the Custodian does not perform
a verification of fees. Clients provide written authorization permitting advisory fees to be deducted by Cornerstone to

                                          Cornerstone Financial Management, LLC
                                         275 14th Street Northwest, Atlanta, GA 30318
                                         Phone: (404) 874-3111 * Fax: (404) 874-3160
                                                 http://yourcorneronline.com/

be paid directly from their account[s] held by the Custodian as part of the investment advisory agreement and
separate account forms provided by the Custodian.

Financial Planning Services
Financial planning fees may be invoiced up to $1,200 upon execution of the financial planning agreement. The
balance shall be invoiced upon completion of the agreed upon deliverable[s].

C. Other Fees and Expenses
Clients may incur certain fees or charges imposed by third parties in connection with investments made on behalf
of the Client’s account[s]. Cornerstone includes Covered Costs as part of its overall investment advisory fee
through the Cornerstone Wrap Fee Program. Securities transaction fees for Client-directed trades may be charged
back to the Client. Please see Item 4.D. above as well as Appendix 1 – Wrap Fee Program Brochure.
In addition, all fees paid to Cornerstone for investment advisory services are separate and distinct from the
expenses charged by mutual funds and ETFs to their shareholders, if applicable. These fees and expenses are
described in each fund’s prospectus. These fees and expenses will generally be used to pay management fees for
the funds, other fund expenses, account administration (e.g., custody, brokerage and account reporting), and a
possible distribution fee. A Client may be able to invest in these products directly, without the services of
Cornerstone, but would not receive the services provided by Cornerstone which are designed, among other things,
to assist the Client in determining which products or services are most appropriate for each Client’s financial
situation and objectives. Accordingly, the Client should review both the fees charged by the fund[s] and the fees
charged by Cornerstone to fully understand the total fees to be paid. Please refer to Item 12 – Brokerage Practices
for additional information.

D. Advance Payment of Fees and Termination
Investment Management Services
Cornerstone may be compensated for its investment management services in advance of the Billing Period in which
services are rendered. Either party may terminate the investment advisory agreement, at any time, by providing
advance written notice to the other party. The Client may also terminate the investment advisory agreement within five
(5) business days of signing the Advisor’s agreement at no cost to the Client. After the five-day period, the Client will
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Item 7 – Types of Clients

Cornerstone offers investment advisory services to individuals, high net worth individuals, trusts, and estates.
Cornerstone generally imposes a minimum relationship size of $250,000, which may be reduced at the sole
discretion of the Advisor.

                                          Cornerstone Financial Management, LLC
                                         275 14th Street Northwest, Atlanta, GA 30318
                                         Phone: (404) 874-3111 * Fax: (404) 874-3160
                                                 http://yourcorneronline.com/