CornerStone Management Inc

Item 5 - Fees and Compensation

General Fee Information
Fees paid to us are exclusive of all custodial and transaction costs paid to your custodian, brokers or
other third-party consultants. Please see Item 12 - Brokerage Practices for additional
information. Fees paid to us are also separate and distinct from the fees and expenses charged by
mutual funds, ETFs (exchange traded funds) or other investment pools to their shareholders
(generally including a management fee and fund expenses, as described in each fund’s prospectus
or offering materials). You should review all fees charged by funds, brokers, Cornerstone and
others to fully understand the total amount of fees paid by you for investment and financial-related
services.

Investment Advisory Fees
Cornerstone receives an advisory fee based on the total market value of the assets you place under
our management (the “Client Account”). Advisory fees are calculated in accordance with the fee
schedule set forth in the written investment advisory agreement between you and Cornerstone.
Please note our fees generally have “tiers,” meaning that if your assets exceed the maximum of the
first tier, your overall fee will be a blended percentage rate that is the result of being charged the
corresponding fee for the first level of assets, plus the different corresponding fee for the next level
of assets, and so on. The maximum current applicable advisory fee rate is 1% per annum of the
market value of the Client Account.

The annual fee schedule is generally structured using a graduated scale starting at 1% and
declining thereafter to 0.50%.

We may, at our discretion, make exceptions to the foregoing or negotiate special fee arrangements
where we deem appropriate under the circumstances:

           •   We may impose a minimum portfolio value and/or a minimum fee.
           •   Institutional clients may pay different fees than retail clients based upon account
               size and client-specific consulting needs and administrative services.
           •   Associated persons of the firm and their friends and family may participate at no
               fees or less than stated fees.

Advisory fees will be paid quarterly in arrears based on ending period market valuations. This
means that we will bill your account at the end of each quarter. If management begins after the start
of a quarter, fees will be prorated accordingly. Cornerstone’s billing system adjusts fee calculations
for time-weighted, capital flows (inflows and outflows) during the billing quarter. With your
authorization and unless other arrangements are made, fees are normally debited directly from
your account(s).

Our annual asset-based advisory fee generally includes all investment policy development, asset
allocation planning and investment management services.           Depending on the specific
circumstances, we or another manager may collect the entire fee and then allocate each party’s
share according to specific arrangements agreed to by you.

Either you or Cornerstone may terminate your Investment Advisory Agreement at any time, subject
to any written notice requirements in the agreement. In the event of termination, final fees will be
prorated based on the number of days that the account was managed, and any fees due to us from
you will be invoiced or deducted from your account.

Separate Account Manager Fees
The fee will vary somewhat depending on the SAM(s) used, but generally are such that, in
combination with our fee, the total does not exceed 2.00% annually. As previously disclosed, SAM
fees may be collected using different billing practices. In instances where the services of one or
more SAMs are utilized, the fee will be charged in addition to our fee and will be detailed in the
Agreement(s) signed by you.

General Consulting Fees
When we provide general consulting services to institutional clients, these services are generally
separate from our other investment advisory services. Fees for general consulting are negotiated at
the time of the engagement for such services. General consulting fees are normally assessed as a flat
fee of up to $50,000.

Planned Gift Administration Fees
When we provide gift administration services to institutional clients, these services are separate
from our other investment advisory services. Fees for planned gift administration are calculated in
accordance with the fee schedule set forth in the written agreement between you and Cornerstone
and are generally billed separately from investment advisory fees. Planned gift administration fees
are typically calculated as a percentage of assets under administration, starting at 0.75% annually
and declining thereafter. When a flat fee is agreed to by the client, the annual fee as a percentage of
assets under administration may be higher than 0.75% annually.

Item 7 - Types of Clients

We serve charitable organizations, individuals, pension and profit-sharing plans, trusts and estates.
We may impose a minimum portfolio value and/or a minimum fee for investment advisory services.