TAPP Finance Inc

Item 5: Fees and Compensation

A. Fee Schedule

SMA Fees

        Performance Fees                       Monthly Fee Rate
        On Net Positive Options Income         20%

TappAlpha charges a performance fee only on any net positive options income earned in
the SMA. There are no management fees applied to gains or dividend income on shares
held in the SMA. No performance fee is charged in a month in which the SMA does not
earn a net positive options income.

B. Payment of Fees

Payment of SMA Fees

Performance fees are withdrawn directly from the SMA client’s account in arrears.

C. Client Responsibility For Third Party Fees

Clients are responsible for the payment of all third-party fees (i.e., custodian fees,
brokerage fees, mutual fund fees, transaction fees, etc.). Those fees are separate and
distinct from the fees and expenses charged by TappAlpha. Please see Item 12 of this
brochure regarding broker-dealer/custodian.

D. Prepayment of Fees

TappAlpha does not require the prepayment of advisory fees. All fees for investment
advisory services, including separately managed account (SMA) services, are either billed
in arrears or deducted from client accounts after services have been rendered, in
accordance with the terms disclosed in the client’s advisory agreement. As such,
TappAlpha is not required to provide a balance sheet under Item 18 of Form ADV Part
2A.

E. Outside Compensation For the Sale of Securities to Clients

Neither TappAlpha nor its supervised persons accept any compensation for the sale of
securities or other investment products, including asset-based sales charges or service fees
from the sale of mutual funds.

Item 7: Types of Clients

TappAlpha generally provides advisory services to the following types of clients:

       ❖       Individuals
       ❖       High-Net-Worth Individuals
       ❖       Qualified Clients

There is an account minimum of $1,000,000 on SMA accounts.