CornerStone Wealth Group LLC

Item 5: Fees & Compensation

How We Are Compensated for Our Advisory Services

Comprehensive Portfolio Management:
   Comprehensive portfolio management services are charged a quarterly fee based on the account’s
   assets under management as of the last day of the preceding quarter cycle. Cash (including cash
   invested in a cash management program arranged through UPTIQ) and accrued interest and accrued
   dividends will be included in an account’s assets under management in calculating the comprehensive
   portfolio management fee unless Cornerstone Wealth determines otherwise, in its discretion. For
   accounts with a margin balance, the account’s assets under management for purposes of calculating the
   comprehensive portfolio management fee will be reduced by the margin balance. Comprehensive
   portfolio management fees are calculated on a pro-rata annualized basis and payable in advance, on a
   rolling three-month quarterly basis (billing quarters, rather than calendar quarters).

    Our fee schedule for portfolio management of new clients will be as follows:

                                            ADVISORY TIERED FEE SCHEDULE
                                      Market Value of Assets            Tiered Rate*
                                 Under $499,999                            1.25%
                                 $500,000 to $999,999                      1.10%
                                 $1,000,000 to $1,499,999                  0.95%
                                 $1,500,000 to $1,999,999                  0.85%
                                 $2,000,000 to $2,999,999                  0.70%
                                 $3,000,000 to $3,999,999                  0.65%
                                 $4,000,000 to $4,999,999                  0.55%
                                 $5,000,000 to $9,999,999                  0.50%
                                 $10,000,000 to $24,999,999                0.40%
                                 $25,000,000 to $49,999,999                0.35%
                                 $50,000,000 to $99,999,999                0.30%

    *Specified rate applies only to assets in that tier. Accounts for which we charge a fee of 0.25% or less
    will no longer be included in the value of your assets when we are determining the fee rate applied to
    your other accounts.

       Tier Billing Example: Client has assets under management of $1,100,000 and are billed according to the
       schedule listed above:
       $0 to $499,999 is billed at 1.25% = $6249.99
       $500,000 to $999,999 is billed at 1.10% = 5499.99
       $1,000,000 to $1,100,000 is billed at .95% = $950
       Total Fee Billed = 12,699.98

    Clients who engaged us prior to July 1, 2021, are subject to legacy fee schedules that differ from the fee
    schedule set forth above. In some instances, we use these legacy fees for new clients. In some instances,
    the use of a legacy fee schedule may include a fee schedule that requires clients to pay us a minimum
    fee of $3,000 per annum.

    Our fees are based on the market value of your assets under our management, including cash, accrued
    interest, accrued dividends, and securities purchased on margin.

    Our fees are potentially negotiable and may vary from client to client based on a variety of factors,
    including, but not limited to, the unique objectives of the client, complexity of the investment plan and
    anticipated future assets from the client. We also reserve the right to waive our minimum fee.

    Unless otherwise arranged by the client, our comprehensive portfolio management fees are
    automatically deducted from a client’s account by the custodian of the account as soon as reasonably
    practicable after the end of each calendar cycle.

    For certain clients, we charge an advisory fee for services provided with respect to the held-away
    accounts mentioned in Item 4 above, just as we do with client accounts that are not held away. The fees
    charged by us for managing held-away accounts are identical to the fees we charge for managing
    accounts that are not held away. The specific fee schedule charged by us is provided in the client’s
    investment management agreement with us.

Management of Annuities and 529s at Companies with an Advisory Option:
  Annuities and 529s at Companies with an Advisory Option may be charged a quarterly fee based on the
  last day of the preceding quarter cycle or based on the last day of the preceding quarter payable in
  arrears. The specific billing conditions will be available in the Product Company’s Documentation.

    We charge the following advisory fee when offering Variable Annuities and 529s that are managed by
    Cornerstone.

       Fee Schedule for Managed 529s or Annuities:
         Asset Type         Maximum Rate
         529                1.00%
         Equity Index       0.75%
         Annuity
         Fixed Index        0.75%
         Annuity
         Variable           Client Fee Schedule
         Annuity            (as listed above)

    We charge different fee rates for assets invested in variable annuities than other managed account
    assets. Charging different rates creates an incentive to invest client accounts in accounts that pay
    Cornerstone Wealth a higher fee.

Retirement Plan Consulting:
   Fees for retirement plan consulting services are typically based on a percentage of plan assets,
   according to the schedule below.

       Fee Schedule for 401(k) and 403(b) plans:
         Value of Plan Assets                      Fee Ranges
         Up to $1,000,000                          50 – 65 bps
         $1,000,000 to $2,500,0000                 40 – 50 bps
         $2,500,001 to $5,000,000                  30 – 40 bps
         $5,000,001 to $10,000,000                 25 – 30 bps
         $10,000,001 to $25,000,000                20 – 25 bps
...

Item 7: Types of Clients

We provide services to the following types of clients:

     •   Individuals and High Net Worth Individuals;
     •   Trusts, Estates or Charitable Organizations;
     •   Retirement Plans;
     •   Other Advisers; and
     •   Corporations, limited liability companies and/or other business types.

Cornerstone Wealth does not have minimum asset requirements for opening and maintaining accounts or
otherwise engaging us. Regardless, the client understands that asset withdrawals may impair the
achievement of the client’s investment objectives. In addition, Cornerstone Wealth retains the right to
accept or decline a potential client, or terminate an advisory agreement with a current client, for any reason
in its sole discretion.