Dagco Inc

Item 5 – Fees and Compensation

100% of our advisory billings are for providing investment management advisory services
to our clients based on our understanding of the individual needs of the client. Our
investment advisory fees are charged quarterly and payable in arrears.

In general, our annual fees for providing investment advisory services are calculated as
follows:

     1% of the market value of assets under management for the first $2,000,000 of assets,
     ¾% on the next $500,000 of assets, and ½% on assets thereafter. The fee will be
     based on the account values on the last business day of the calendar quarter. The first
     quarterly charge will be prorated in accordance with the actual time assets were
     placed under management.

     For assets under management under $500,000, certain fee arrangements charge
     $1,250 quarterly.

     We also charge a $10 minimum quarterly fee per client account.

Cornerstone reserves the right to enter into other billing arrangements based upon a flat
fee or reduced percentage rate. All fees are subject to negotiation.

A client agreement may be canceled at any time, by either party, for any reason upon
receipt of written notice. Upon termination of any account, any earned, unpaid fees will be
billed. Our standard contract requests authority from the client to directly debit fees from
the client’s account.

All fees paid to Cornerstone Wealth Management for investment advisory services are
separate and distinct from the fees and expenses charged by mutual funds to their
shareholders. These fees and expenses are described in each fund's prospectus. These fees
will generally include a management fee, other fund expenses, and a possible distribution
fee. A client could invest in mutual funds directly without the services of Cornerstone
Wealth Management. In that case, the client would not receive the services provided by us
which are designed, among other things, to assist the client in determining which mutual

fund or funds are most appropriate to each client's financial condition and objectives.
Accordingly, the client should review both the fees charged by the funds and the fees
charged by the advisor to fully understand the total amount of fees to be paid by the client
and to thereby evaluate the advisory services being provided.

Cornerstone Wealth Management’s fees are exclusive of brokerage fees, transaction fees,
and other related costs and expenses which shall be incurred by the client. Clients may
incur certain charges imposed by custodians, brokers, and other third parties such as
custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and
electronic fund fees, fees charged by Independent Managers, and other fees and taxes on
brokerage accounts and securities transactions. Such charges, fees and commissions are
exclusive of and in addition to Cornerstone’s fee, and Cornerstone does not receive any
portion of these commissions, fees, and costs.

See Item 12 for additional brokerage information.

Financial Planning Services:

Cornerstone's Financial Planning fee is determined based on the nature of the services
being provided and the complexity of each client’s circumstances. All fees are agreed upon
prior to entering into a contract with any client and will be charged as mutually decided.
Financial planning fees will be charged in one of two ways:

   1. On a one-time basis where we charge per hour. Our current hourly rate ranges from
      $300-$600. Our one-time planning fees typically range from $1,500 to $15,000,
      depending on the nature and complexity of each client’s circumstances.

   2. As an annual retainer where we charge a fixed fee, typically ranging from $3,000 to
      $15,000, depending on the nature and complexity of each client’s circumstances.

Although the length of time it will take to provide a Financial Plan will depend on each
client's personal situation, Cornerstone will normally provide an estimate for the total cost
at the start of the advisory relationship.

Cornerstone may request a retainer upon completion of our initial fact-finding session with
the client; however, advance payment will never exceed $1200 for work that will not be
completed within six months. The balance is due upon completion of the plan.

See Item 12 for additional brokerage information.

Item 7 – Types of Clients

The Firm generally provides investment advice to individuals; corporations or other
business entities; trusts, estates, or charitable organizations; and qualified retirement
plans.

     While Cornerstone does not impose a minimum account size, we do charge a $10
     minimum quarterly fee per client account.