Corrado Advisors LLC

Item 5           Fees and Compensation
   A.
                                   INVESTMENT ADVISORY SERVICES
         If a client determines to engage Corrado to provide discretionary investment advisory
         services on a negotiable fee basis, Corrado’s annual investment advisory fee shall be based
         on the market value of the assets placed under Corrado’s management, and is negotiable
         up to a maximum of 1.50% (See also Fee Differential discussion above). Corrado’s annual
         investment advisory fee shall be based upon various objective and subjective factors,
         including, but not limited to, the amount of the assets placed under Corrado’s direct
         management, the complexity of the engagement, and the level and scope of the overall
         investment advisory services to be rendered. As a result, similar clients could pay different
         fees, which will correspondingly impact a client’s net account performance. Moreover, the
         services to be provided by Corrado to any particular client could be available from other
         advisers at lower fees, and certain clients may have fees different than those specifically
         set forth above. Corrado may also reduce its annual investment advisory fee for
         management of fixed income securities. Although Corrado will allocate client assets
         consistent with the client’s designated investment objectives, the fact that Corrado earns a
         higher fee for management of securities other than fixed income securities presents a

         conflict of interest because Corrado has an economic incentive to allocate more assets to
         those types of securities from which it will earn a higher advisory fee. Before engaging
         Corrado to provide investment advisory services, clients are required to enter into a
         discretionary Investment Advisory Agreement, setting forth the terms and conditions of the
         engagement (including termination), which describes the fees and services to be provided.

                FINANCIAL PLANNING AND CONSULTING SERVICES (STAND-ALONE)
         Corrado may be engaged to provide financial planning and/or consulting services
         (including investment and non-investment related matters, including estate planning,
         insurance planning, etc.) on a stand-alone separate fee basis. Corrado’s planning and
         consulting fees are negotiable, but generally range from $200 to $400 on an hourly rate
         basis, depending upon the level and scope of the service(s) required and the professional(s)
         rendering the service(s).

   B. Clients may elect to have Corrado’s advisory fees deducted from their custodial account.
      Both Corrado’s Investment Advisory Agreement and the custodial/clearing agreement may
      authorize the custodian to debit the account for the amount of Corrado’s investment
      advisory fee and to directly remit that management fee to Corrado in compliance with
      regulatory procedures. In the limited event that Corrado bills the client directly, payment
      is due upon receipt of Corrado’s invoice. Corrado shall deduct fees and/or bill clients
      quarterly in arrears, based upon the market value of the assets on the last business day of
      the previous quarter.

   C. As discussed below, unless the client directs otherwise or an individual client’s
      circumstances require, Corrado shall generally recommend that Charles Schwab and Co.,
      Inc. (“Schwab”) serve as the broker-dealer/custodian for client investment management
      assets. Broker-dealers such as Schwab charge brokerage commissions and/or transaction
      fees for effecting certain securities transactions (i.e. transaction fees are charged for certain
      no-load mutual funds, commissions are charged for individual equity and fixed income
      securities transactions). In addition to Corrado’s investment management fee, brokerage
      commissions and/or transaction fees, clients will also incur, relative to all mutual fund and
      exchange traded fund purchases, charges imposed at the fund level (e.g. management fees
      and other fund expenses).
   D. Corrado’s annual investment advisory fee shall be prorated and paid quarterly, in arrears,
       based upon the market value of the assets on the last business day of the previous quarter.
       The Investment Advisory Agreement between Corrado and the client will continue in effect
       until terminated by either party by written notice in accordance with the terms of the
       Investment Advisory Agreement. Upon termination, Corrado shall debit the account for the
       pro-rated portion of the unpaid advisory fee based upon the number of days that services
       were provided during the billing quarter. Corrado will also adjust the client’s quarterly
       advisory fee with respect to intra-fee billing period additions or withdrawals to/from
       managed accounts. The Firm will generally waive advisory fees that fall below $15 in a
       billing period.

   E. Neither Corrado, nor its representatives accept compensation from the sale of securities or
      other investment products.

Item 7           Types of Clients

         Corrado’s clients generally include individuals, business entities, trusts, estates and
         charitable organizations. Corrado generally requires a $250,000 minimum asset level for
         investment advisory services. Corrado, in its sole discretion, may reduce or waive its
         minimum asset requirement based upon certain criteria (i.e. anticipated future earning
         capacity, anticipated future additional assets, dollar amount of assets to be managed, related
         accounts, account composition, negotiations with client, etc.).