Edge Wealth Management LLC

Item 5          Fees and Compensation

   A. Clients can engage Edge to provide discretionary investment advisory services on
      a fee basis under the following terms and conditions. Edge’s annual investment
      advisory fee will be based upon a percentage (%) of the market value of the assets

   placed under Edge’s management (generally between 0.25% and 1%) in
   accordance with the fee schedule reflected on the Investment Advisory Agreement
   between Edge and the client.

   Edge’s investment advisory fee is negotiable at Edge’s discretion, depending upon
   objective and subjective factors including but not limited to: the amount of assets
   to be managed, portfolio composition, the scope and complexity of the
   engagement, the anticipated number of meetings and servicing needs, related
   accounts, future earning capacity, anticipated future additional assets, the
   professionals providing the services, prior relationships with Edge or its
   representatives, and negotiations with the client. Edge may also determine to
   aggregate account values for related clients (such as spouses and minor children
   sharing the same residence) for the purpose of reducing the overall fee. As a result
   of these factors, similarly situated clients could pay different fees which
   correspondingly impacts a client’s net account performance, and the services to
   be provided by Edge to any particular client could be available from other
   advisers at lower fees.

   Edge may maintain cash and cash equivalent positions (such as money market
   funds) for defensive and liquidity purposes. Unless otherwise agreed in writing, all
   such cash positions are included as part of assets under management for
   purposes of calculating Edge’s advisory fee. A client can advise Edge not to
   maintain (or to limit the amount of) cash holdings in the client’s account.

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

C. Unless a client’s circumstances dictate otherwise, Edge generally recommends
   that Charles Schwab and Co., Inc., and its affiliates (“Schwab”) serve as the
   broker- dealer/custodian for client investment management assets. Broker-dealers
   charge transaction fees for executing certain securities transactions according to
   their fee schedule and they or their affiliated or unaffiliated custodians impose
   additional charges for custodial services and other fees associated with
   maintaining the client’s account. The amount of the commissions and transaction
   fees may vary depending upon the following factors: the broker-dealer/custodian
   utilized; the amount of assets under management or custodied; the type of asset
   (e.g., equity, ETF, mutual fund, fixed income product); and whether clients receive
   their account statements electronically or by hard copy. Without limiting the
   foregoing, clients may be required to pay certain charges and administrative fees
   related to their investment advisory accounts, including, but not limited to
   transaction charges (including mark-ups and mark-downs) resulting from trades
   executed through or with a broker-dealer other than the designated broker-
   dealer/custodian, transfer taxes, transfer or wiring fees, odd lot differentials,
   exchange fees, interest charges, American Depository Receipt agency processing
   fees, and any charges, taxes or other fees mandated by any federal, state or other

         applicable law or otherwise agreed to with regard to client accounts. For mutual
         fund and ETF purchases, clients will incur charges imposed by the respective fund,
         which represent the client’s pro rata share of the fund’s management fee and other
         fund expenses. These fees and expenses are described in each fund’s prospectus
         or other offering documents. The fees charged by the applicable broker-
         dealer/custodian, and the charges imposed by mutual funds and ETFs, are
         separate from and in addition to Edge’s advisory fee referenced in this Item 5.
         Edge does not share in any portion of those fees or expenses.

   D. Edge’s annual investment advisory fee is prorated and payable quarterly, in
      arrears, based upon the market value of the assets weighted for inflows and
      outflows on the last business day of the previous quarter. The Investment Advisory
      Agreement between Edge 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, Edge will bill or debit the client account for
      the pro-rated portion of the unpaid advisory fee paid based upon the number of
      days services were provided during the billing quarter.

   E. Commission Transactions. Clients can engage Edge’s supervised person, Brett
      Rosen, in his individual capacity as a licensed insurance agent, to purchase
      insurance products on a commission basis. The commissions may be higher or
      lower than those charged by other insurance agents.

         1 Conflict of Interest: The recommendation that a client purchase an insurance
           commission product from Mr. Rosen presents a conflict of interest, because the
           receipt of commissions may provide an incentive to recommend insurance
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Item 7          Types of Clients

         Edge’s clients generally include individuals, high net worth individuals, charitable
         organizations, insurance companies, trusts and estates. Edge does not require a
         minimum asset level or minimum annual fee for investment advisory services.