Dibenedetto & Associates Ltd

Fees and Compensation
DiBenedetto & Associates Ltd is compensated (paid) for its services by a
management fee. This is a fixed fee either calculated as a percentage of the
assets that we manage or a flat dollar rate.
Our basic rates for assets under management, fees are based on a scale below:
       0-$499,999.99                 1.25% annual rate
       $500,000.00-$999,999          1% annual rate
       $1,000,000.00 and up          less than 1%

The fee rates listed above are annual rates. We charge our fee quarterly. No
earlier than the last day of a quarter (3/31; 6/30; 9/30; 12/31), we take the value of
your account as supplied by our custodian and multiply that amount by one quarter
of the annual rate for the account. That is the amount that you are charged during
that period of time. A simple example:
       John is a client with a taxable account and an IRA that totals $500,000.00.
       His rate is 1%. His management fee on 3/31 is $1,250.00. 500,000.00 x
       .0025 = 1250.00
If a client terminates their relationship with us in the middle of a billing period, they
will be charged for the amount of time that we still managed the account during
that period (pro-rated). For example:
       John decides to hire another manager and notifies the firm that he will be
       moving his money as of 4/30. On 4/30 his account is still $500,000.00 and
       the base fee is still $1,250.00. 1250 divided by 91 days equals 13.7363.
       That would be the daily rate. 13.4363 x 30(days) = 412.09. That would be
       the fee we would charge.
What are considered assets under management? Assets under management are
any security or cash that we supervise or give advice on. We exclude items from
assets under management if our client has asked us to not manage that particular
security or any security that we were paid a commission. An example:
       John has several accounts with DiBenedetto and Associates Ltd total
       amount equaling $500,000.00. In one account he has 100 shares of Apple
       Inc. that were a gift from his father and he intends to give to his son and will
       not ever sell. John asks that the 100 shares of Apple Inc. be excluded from
       the assets under management. John also purchased a share of a REIT that
       DiBenedetto & Associates was paid a commission for selling. On 6/30 the
       100 shares of Apple was worth $35,000.00 and the REIT was worth

       $100,000.00. $500,000.00 - $35,000.00- $100,000.00 = $365,000.00.
       John’s assets under management for his fee calculation would be
       $365,000.00 on 6/30.
If you have opted for a flat dollar fee, instead of using a percentage of the assets
under management, the quarterly fee is a flat dollar amount negotiated between
the advisor and the client. This fee has no relation to the amount of investments
that we manage for a client.
DiBenedetto & Associates Ltd is also an independent insurance broker. Insurance
products are commission products. If a client purchases and insurance product
from DiBenedetto & Associates, that asset will not be considered assets under
management and will not be included in fee calculations.
How do we collect the management fee? There are two methods that we use:

          •   The fee is directly debited from an account the client chooses that
              we manage.
          •   We send an invoice and the client pays by check.
The client chooses which method to be used for the account. All fees are due at
the time of invoicing and will be considered late if not received within 30 calendar
days.
The client is responsible for verifying the accuracy of the fee calculation and the
bill amount. The custodian, Charles Schwab & Co. is not responsible for and will
not check for the accuracy of the bill.
If a client discovers an error in the bill amount, please call and speak with
Alex DiBenedetto at 815-654-8850 about the error.
The client is responsible for all fees related to their investment account. These
fees may include:

          •   Margin fees
          •   Transaction fees
          •   Wire transfer fees
          •   Taxes
          •   Check printing fees
          •   Asset transfer fees
          •   Overnight delivery fees
DiBenedetto & Associates Ltd is not responsible for any taxable
consequences from investment activity.
The advisor is not compensated in any other way than the management fee, or
any commission paid for a life insurance product. Clients invested in mutual funds
are responsible for any expenses related to those mutual funds. Mutual funds

charge a management fee that is part of the net asset value (the price) of the
mutual fund.
DiBenedetto & Associates Ltd does not receive any additional compensation
from mutual funds for buying those funds for our clients. We are
compensated only through our management fee.