CornerStone Wealth Management LLC

Item 5: Fees & Compensation

We are required to describe our brokerage, custody, fees, and fund expenses so you will know how
much you are charged and by whom for our advisory services provided to you. Actual fees paid by
clients who engage our firm through an advisor who has joined Cornerstone Wealth Management
may be different than published below as we allow advisors to grandfather their previously
established advisory fee schedules with our firm.

Asset Management

                 Assets Under Management         Annual Percentage of Assets Charge
                     $0 to $499,999.99                      Up to 2.4%
                  $500,000 to $999,999.99                   Up to 1.9%
                      Over $1,000,000                       Up to 1.4%

For LPL Accounts:

The fee to be assessed to each account will be detailed in the client’s signed advisory agreement, LPL
Account Application, or LPL Tiered Fee Authorization form. Fees are billed on a pro-rata basis
quarterly in advance based on the value of the account(s) on the last day of the previous quarter. Fees
are negotiable and will be deducted from the account(s). Fees are adjusted for deposits and
withdrawals made during the quarter. We bill on cash or cash equivalents unless otherwise indicated
in writing. If accounts are opened during the quarter, the pro-rata advisory fees will be deducted
during the next regularly scheduled billing cycle. Our firm does not offer direct invoicing. As part of
the fee deduction process, clients understand the following:

    a) LPL as the client’s custodian sends statements at least quarterly, showing all disbursements
       for each account, including the amount of the advisory fees paid to our firm.
    b) Clients provide authorization permitting LPL to deduct these fees.
    c) LPL calculates the advisory fees for all fee schedules and deducts them from the client’s
       account.

For Other Custodian Accounts:

Fees to be assessed will be outlined in the advisory agreement to be signed by the client. Annualized
fees are billed on a pro-rata basis quarterly in advance based on the value of the account(s) on the
last day of the previous quarter. Fees are negotiable and will be deducted from client account(s). Fees
are not adjusted for deposits and withdrawals made during the quarter. We bill on cash or cash
equivalents unless otherwise indicated in writing. If accounts are opened during the quarter, the pro-
rata advisory fees will be deducted during the next regularly scheduled billing cycle. Our firm does
not offer direct invoicing. As part of the fee deduction process, clients understand the following:

    a) The client’s independent custodian sends statements at least quarterly showing the market
       values for each security included in the assets and all account disbursements, including the
       amount of the advisory fees paid to our firm.
    b) Clients will provide authorization permitting our firm to be directly paid by these terms. Our
       firm will send an invoice directly to the custodian.

ADV Part 2A – Firm Brochure                      Page 8                   Cornerstone Wealth Management, LLC

    c) If we send a copy of our invoice to the client, our invoice will include a disclosure urging the
       client to compare the information provided in our statement with those from the qualified
       custodian.

In certain cases, our firm will manage client account(s) that are held at a custodian that is not directly
accessible by our firm using Pontera Solutions, Inc. (“Pontera”)’s order management system. The
advisory fee payable for any held away accounts will be deducted directly from another client
account. If there are insufficient funds available in another client account or our firm believes that
deducting the advisory fee from another client account would be prohibited by applicable law, we
will invoice the client directly.

Retirement Account Consulting and Management

We charge on an hourly, flat fee, or a percentage of assets under management basis for our
Retirement Account Consulting and Management 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.
Our hourly fee is $250. Our flat fees generally range from $750 to $10,000 (charged annually for
ongoing pension consulting services). Alternatively, ongoing services may be charged a percentage
of assets under our management according to the schedule below. The fee-paying arrangements will
be determined on a case-by-case basis and will be detailed in the advisory agreement. The client will
be invoiced directly for the fees.

                 Assets Under Management          Annual Percentage of Assets Charge
                     $0 to $499,999.99                       Up to 2.5%
                  $500,000 to $999,999.99                    Up to 2.0%
                      Over $1,000,000                        Up to 1.5%

Fees will be billed quarterly via invoice to the client and shall be paid within ten (10) days of the
invoice date if fees are not deducted directly from the account.

Financial Planning and Consulting

We charge on an hourly or flat fee basis for financial planning and consulting services. The total
estimated hourly or flat fee, as well as the ultimate fee that we charge, is based on the scope and
complexity of our engagement with you. We charge an hourly fee of up to $400 for financial advisors.
Flat fees generally range from $500 to $5,000. Fees are billed directly to the client if not deducted
from client account. Implementation of the recommendations will be at the discretion of the client.

We generally require a retainer of fifty-percent (50%) of the ultimate financial planning or consulting
fee with the remainder of the fee directly billed to you and due to us within thirty (30) days of your
...

Item 7: Types of Clients & Account Requirements

We have the following types of clients:
   • Individuals and High Net Worth Individuals;
   • Trusts, Estates or Charitable Organizations;
   • Pension and Profit Sharing Plans;
   • Corporations, limited liability companies and/or other business types;
   • Other Investment Advisers.

Our requirements for opening and maintaining accounts or otherwise engaging us:
   • We do not require a minimum account balance for our Asset Management service.
   • We do not charge a minimum fee for written financial plans.
   • A minimum account value of $5,000 is required to enroll in LPL’s Guided Wealth Portfolios
       Program (GWP) service.
   • A minimum account value of $100,000 is required for LPL’s Manager Access Select (“MAS”)
       service. However, in certain instances, the minimum account size may be lower or higher.
   • A minimum account value of $10,000 is required for LPL’s Optimum Market Portfolios
       Program (OMP) service.
   • A minimum account value of $250,000 is required for LPL’s Personal Wealth Portfolios
       Program (PWP) service.
   • A minimum account value of $25,000 is required for LPL’s Model Wealth Portfolios Program
       (MWP) service.

ADV Part 2A – Firm Brochure                    Page 12                  Cornerstone Wealth Management, LLC