Landolt Securities Inc

Item 5 – Fees and Compensation

We are required to describe our brokerage, custody, fees, and fund expenses so you will
know how much you are charged and by whom our advisory services are provided to you.
Our fees are negotiable and based upon the value and type of assets being managed. All
fees, including the minimum annual fee, generally conform to the following fee schedule:

Quarter-End Account Value           Quarterly Fee*        Annual Fee

$0 - $1,000,000                  .500%                 2.00%
$1,000,001 - $5,000,000          .437%                 1.75%
Over $5,000,000                  .375%                 1.50%

*Subject to a $300 minimum quarterly fee (not to exceed 3% of a client’s assets under
management)

The fees shown above are for investment management services only. Fees do not cover any
transaction, commission, or other service costs. Fees are calculated as a percentage of
account assets as set forth on the schedule above. Fees are charged three months in
advance based upon the account value as of the end of each three-month period. The
values of related accounts may, at the Advisor’s discretion, be combined for fee calculation
purposes. Clients may elect to have their account debited as fees occur, or they may elect
to receive a bill directly. We bill clients or charge their fees on a quarterly basis. Deposits
exceeding $10,000 shall be charged a pro-rated fee from the date of deposit. Partial
withdrawal of funds exceeding $10,000 will result in a pro-rated refund of prepaid fees.
Upon termination, which can occur by written notice, all unearned prepaid fees are
returned to the client. Unearned fees paid in advance will be returned on a pro-rated basis
from the date following receipt by the Advisor of the written termination notice.

Clients may pay an annual $50.00 custodial fee if the account is for an IRA. The Advisor
may also receive mutual fund service fees paid by mutual funds (aka 12b-1 fees). Clients
may be charged a transaction fee, typically $20.00 - $40.00 per trade. Please see Item 12
for further clarification. Due to the quarterly minimum fee, a client's annual fee may
exceed 2%. Thus, clients should be aware that fees in excess of 2% a year are considered
high and similar services may be available at a lower cost from other firms.

Third Party Asset Management Programs

For Third Party Asset Management Programs (“TAMPs”), clients pay an advisory fee as set
out in the client agreement with the TAMP sponsor. The fee is typically negotiated among
the TAMP sponsor, the IAR and the client. The TAMP sponsor establishes a fee schedule or
sets a minimum or maximum fee. The TAMP fee schedule will be set out in the Disclosure
Brochure provided by the TAMP sponsor. The advisory fee typically is based on the value of
assets under management as valued by the custodian of the assets for the account and will
vary by program. The advisory fee typically will be deducted from the account by the
custodian and paid quarterly in arrears or in advance. The advisory fee is often paid to the
TAMP sponsor, who in turn pays a portion to Landolt Securities, Inc. Generally, Landolt
Securities Inc. shares between 80% and 90% of our portion of the fee with the IAR based
on the agreement between Landolt Securities and the IAR. A TAMP account can be
terminated by a party pursuant to the terms outlined in the TAMP client agreement. The
TAMP client agreement will explain how clients can obtain a refund of any pre-paid fee if
the agreement is terminated before the end of a billing period. There are other fees and
charges imposed by third parties that usually apply to investments in TAMP accounts.
These types of fees and charges are described below. Absent other arrangements, the client
is charged commissions, markups, markdowns, or transaction charges by the custodian
who executes transactions in the TAMP account. There are usually custodian related fees
imposed by the custodian of assets for the program account. These additional fees and
charges will be set out in the TAMP Brochure and the agreements executed by the client at
the time the account is opened. If assets are invested in mutual funds, ETFs or other pooled
funds, there are two layers of advisory fees and expenses for those assets. The client will
pay an advisory fee to the mutual fund manager and other expenses as a shareholder of the
mutual fund. The client will also pay the TAMP advisory fee with respect to those assets.
The mutual funds and ETFs available in the programs are available for direct purchase.
Therefore, clients could avoid the second layer of fees by not using the advisory services of
the TAMP and IAR and by making their own decisions regarding the investment. While a
mutual fund in a TAMP program account at times pays an asset based sales charge or
service fee (e.g., 12b-1 fee) to the custodian on the account Landolt Securities and its IARs
are not paid any portion of these fees. If a client transfers into a TAMP account a previously
purchased mutual fund, and there is an applicable contingent deferred sales charge on the
fund, client will pay that charge when the mutual fund is sold. If the account is invested in a
mutual fund that charges a fee if a redemption is made within a specific time period after
the investment, client will be charged a redemption fee. If a mutual fund has a frequent
trading policy, the policy can limit a client’s transactions in shares of the fund (e.g., for
rebalancing, liquidations, deposits or tax harvesting). If a client holds a variable annuity
that is managed as part of a TAMP account, there are mortality, expense and administrative
charges, fees for additional riders on the contract and charges for excessive transfers
within a calendar year imposed by the variable annuity sponsor. If client holds a UIT in a
program account, UIT sponsors charge creation and development fees or similar fees.
...

Item 7 – Types of Clients

Advisor provides portfolio management services to individuals, high net worth individuals,
corporate pension and profit-sharing plans, charitable institutions, foundations,
endowments, private investment funds, trust programs, and U.S. corporations.

The firm does not have a minimum account size but does charge all managed accounts a
minimum fee of $300 per quarter. The charge to the client will be either the minimum fee
($300) or the fee rate specified in the management agreement, but not both.