Running Point Capital Advisors LLC

Item 5     Fees and Compensation

                                PORTFOLIO MANAGEMENT FEES

Running Point generally charges an annual fee based on the client’s assets under management by
Running Point, in accordance with the following schedule:

                     Assets Under Management           Standard Annual Fee
                           Up to $5 million                    1.00%
                       $5 million - $10 million                0.85%

                       $10 million – $20 million               0.75%
                       $20 million - $50 million               0.65%
                      $50 million - $100 million               0.55%
                          Over $100 million                    0.45%

In addition to the investment management fee described above, Running Point charges additional
fees for custom �ixed income management. These fees are negotiable and vary based on such factors
as the underlying investment strategy and complexity of the services provided. If custom �ixed
income management is used in your portfolio, an additional schedule or exhibit of fees will be
provided to you. The following fees are generally assessed as a percentage of the market value of all
assets in the account:

   1. Customized Target Income Portfolio 0.25%
   2. Short Term Fixed Income 0.10%
   3. Covered Call Writing Income Strategy 0.50%

Running Point’s portfolio management fees are billed quarterly in advance based upon the value
(market value or fair value in the absence of market value) of the client's account at the end of the
previous quarter, including margin (gross). Our fee shall be prorated for any partial calendar
quarter during the terms of the Agreement, based on the number of days in such calendar quarter
included in the terms of the Agreement. For those who become clients in the middle of a quarter,
Running Point prorates our fee based off the current market value of the account. Clients may
choose to be billed directly for fees or authorize Running Point to directly debit fees from their
account in accordance with the client authorization in the Wealth Management Agreement.

PRIVATE PLACEMENT LIFE INSURANCE/PRIVATE PLACEMENT VARIABLE ANNUITIES FEES

Fees on assets that are managed inside a private placement life insurance or variable annuity
contract are billed quarterly in arrears by the insurance company using the insurance company’s
valuation of the account on the last business day of the previous quarter, including accrued interest.

For the �irst billing cycle on new accounts, fees are prorated as of the date of receipt of �irst assets
into the account. Charging higher fees for some strategies versus others is a con�lict of interest
controlled by investment guidelines, risk tolerance, and investment objectives. The fees charged
may be higher than fees charged for other portfolio management services. These assets generally
will not be in included in calculating a client’s fees that are held outside of this structure.

These fees are generally negotiable based on factors that include, but are not limited to, the total
managed assets as well as the totality and complexity of the overall advisory services provided to
the client. The �inal fee schedule is included in the Investment Policy Statement (“IPS”) signed by
the owner of the PPLI or PPVA contract. Investors are under no obligation to purchase a PPLI or
PPVA using Running Point as the asset manager.

Running Point believes that its annual fee for PPLI & PPVA management is reasonable in relation to:
(1) services provided under the investment advisory agreement; and (2) the fees charged by other
investment advisers offering similar services/programs. In addition to compensation of Running
Point, clients will also incur transactional charges imposed by the custodian, administrator, and
underlying investment fund.

An employee of Running Point is also a registered representative of The Leaders Group, Inc., a
registered broker-dealer. With respect to the PPLI and PPVA products, the employee in their
capacity as a registered representative of The Leaders Group, charges an annual fee between 0 and
0.30% on assets invested in the PPLI or PPVA program, taken as a fee from the cash accumulation
within the PPLI or PPVA, and billed quarterly in arrears. The registered representative may also
charge a placement fee between 0% and 3% on the premium invested into the PPLI and PPVA
(“Placement Fee”). In the event the registered representative does not charge a Placement Fee,
Running Point will not charge a set-up fee. This presents a con�lict of interest, in that, both Running
Point and the Running Point employee, as a registered representative of The Leaders Group, have
an incentive to recommend the PPLI or PPVA to clients. Clients are under no obligation to use
Running Point for access to these products.

Negotiability of Advisory Fees: The speci�ic manner in which fees are charged by Running Point is
established in a written Investment Advisory Agreement with Running Point. All fees may be
subject to negotiation, based on several factors, including, but not limited to, the size of the
relationship, the nature and complexity of the products and investments involved, time
commitments and travel requirements.

We may group certain related client accounts for the purposes of determining the annualized fee.

                                   FINANCIAL PLANNING FEES

Running Point’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. Typical costs for �inancial planning arrangements may
range from $3,500 to $30,000 or more, depending on needs and varying complexity. Clients are
typically billed in advance for services provided.

                                    TRUSTEE SERVICES FEES
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Item 7      Types of Clients

Running Point provides advisory services to the following types of clients:

•   Individuals (other than high net worth individuals)
•   High net worth individuals
•   Small businesses and their owners
•   Large businesses and their owners
•   Family Of�ices
•   Trusts and estates
•   Private Foundations
•   Charities
•   Pension and retirement plans

                         MINIMUM INVESTMENT AMOUNTS REQUIRED

Running Point generally requires a minimum account size of $5 million for portfolio management
services. This account size is subject to change and is negotiable by our �irm, at any time and in our
sole discretion.