Corundum Group Inc

Item 5: Fees and Compensation

Description
CG is compensated primarily through advisory fees based on a percentage of assets under management. However,
we do offer additional compensation arrangements, such as hourly and flat fee arrangements. Advisory fees are
based on the market value of the assets and may be subject to a minimum annual fee of $10,000, with the standard
fee being 1%. Fees are negotiable based on the size and complexity of the accounts, the investment products used,
the level of specialized services, and the historical relationship. CG is also compensated through management fees
on its private fund products, as described below.

Fee Billing
Advisory fees are billed quarterly in advance and usually deducted from the client’s account. A fee invoice is sent
with the client’s quarterly statement. Clients must consent in advance to direct debiting of fees from their accounts.
If, for any reason, a client wishes to terminate a separately managed account, the client must provide notice in
accordance with the terms of their Advisory Services Agreement, and any fees paid in advance will be refunded pro
rata for the number of days remaining in the quarter. Private fund management fees are billed quarterly in advance.
Individual limited partners are able to withdraw from the Funds pursuant to the terms of the fund’s operating
agreement. However, limited partners who withdraw from the funds do not receive refunds of any management
fees paid in advance.

Other Fees
A third-party broker can charge transaction fees or asset-based fees in a separately managed portfolio for custody
and sub-advisory services (see Item 12: Brokerage Practices). These fees would be in addition to any advisory fees
paid to CG. If mutual funds are used, the mutual fund management fees are in addition to the advisory fee paid to
CG.

The private funds are charged a fee by the manager (generally CG or CPI – see Item 10), which is paid from fund
assets. These management fees are separate from and in addition to the advisory fees paid by clients to CG. The
amount of the management fee depends on the type of private fund and is disclosed in the operating agreement
for the fund or additional offering materials. The fee is typically based on the limited partner’s pro rata portion of
the net asset value as of the previous quarter’s end or on their capital contributions. In addition, the manager has
the right to earn an origination fee from the borrower of up to 1.5% of the loan amount when it makes direct loans
within several of the private funds. Management fees and origination fees present conflicts of interest because
they incentivize CG to recommend private funds (see Item 11: Conflicts of Interest).

We have private funds that invest in apartments for which CG receives a management fee from the third-party

investment manager. CG or CPI may be eligible to receive a carried interest distribution from some private fund
investments, which incentivizes GC to recommend them (see Item 11: Conflicts of Interest).

Other Expenses
The private funds have expenses, including audit and tax preparation fees and reimbursable costs to CG, which
include costs for software used by the private funds. The managed equity funds have mutual fund fees, ETF costs,
and ADR fees.

Item 7: Types of Clients

CG provides investment advice primarily to individuals, high-net-worth individuals, trusts, foundations, and
partnerships. Many of the Firm’s clients are families with complex financial structures and multi-generational
planning needs. CG operates under a multi-family office model and provides services that include coordination
with legal, tax, and other professional advisors, consolidated investment oversight, and assistance with the
management of private investments and other complex assets.