<SEC-DOCUMENT>0001398344-19-003233.txt : 20190222
<SEC-HEADER>0001398344-19-003233.hdr.sgml : 20190222
<ACCEPTANCE-DATETIME>20190222170521
ACCESSION NUMBER:		0001398344-19-003233
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20190416
FILED AS OF DATE:		20190222
DATE AS OF CHANGE:		20190222
EFFECTIVENESS DATE:		20190222

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CORNERSTONE STRATEGIC VALUE FUND INC
		CENTRAL INDEX KEY:			0000814083
		IRS NUMBER:				133407699
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-05150
		FILM NUMBER:		19626558

	BUSINESS ADDRESS:	
		STREET 1:		225 PICTORIA DRIVE, SUITE 450
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45246
		BUSINESS PHONE:		(513) 587-3400

	MAIL ADDRESS:	
		STREET 1:		225 PICTORIA DRIVE, SUITE 450
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45246

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CORNERSTONE STRATEGIC VALUE FUND INC/ NEW
		DATE OF NAME CHANGE:	20010503

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CLEMENTE STRATEGIC VALUE FUND INC
		DATE OF NAME CHANGE:	19990622

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CLEMENTE GLOBAL GROWTH FUND INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>fp0039892_def14a.htm
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-size: 18pt"><B>SCHEDULE
14A</B></FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-size: 11pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-size: 11pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-size: 11pt"><B>(Rule
14a-101)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-size: 18pt">&nbsp;<B>INFORMATION
REQUIRED IN PROXY STATEMENT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-size: 11pt"><B>&nbsp;</B></FONT></P>



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<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-size: 11pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-size: 18pt"><B>SCHEDULE
14A INFORMATION</B></FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-size: 11pt"><B>Proxy
Statement Pursuant to Section 14(a) of the</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-size: 11pt"><B>Securities
Exchange Act of 1934</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-size: 11pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-size: 11pt">Filed
by the Registrant [X] Filed by a Party other than the Registrant [&nbsp;&nbsp; ]</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-size: 11pt">Check
the appropriate box:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 11pt; color: Black">[&nbsp;&nbsp;&nbsp;]</FONT><FONT STYLE="font-size: 11pt">&nbsp;</FONT></P></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt; color: Black">Preliminary
    Proxy Statement</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">[&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt"><B>Confidential, for
    Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</B></FONT></TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">[X]</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">Definitive Proxy Statement</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">[&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">Definitive Additional
    Materials</FONT></TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 11pt">[&nbsp;&nbsp;&nbsp;]</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">Soliciting Material
    Pursuant to Section 240.14a-11(c) or Section 240.14a-12</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-size: 18pt"><B>CORNERSTONE
STRATEGIC VALUE FUND, INC.</B></FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-size: 11pt"><B>(Name
of Registrant as Specified in Its Charter)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-size: 11pt">Payment
of Filing Fee (Check the appropriate box):</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">[X]</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">No fee required.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 90%"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">[&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">Fee computed on table below per
    Exchange Act Rules 14a-6(i)(1) and 0-11.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(1)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">Title of each class of securities to which transaction
    applies:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(2)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">Aggregate number of securities to which transaction
    applies:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(3)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">Per unit price or other underlying value of
    transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state
    how it was determined):</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(4)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">Proposed maximum aggregate value of transaction:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(5)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">Total fee paid:</FONT></TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding-bottom: 1.5pt"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%; padding-bottom: 1.5pt"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 90%; border-bottom: black 1pt solid"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">[&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">Fee paid previously with preliminary
    materials.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">[&nbsp;&nbsp;&nbsp;]</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">Check box if any part of the fee
    is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously.
    Identify the previous filing by the registration statement number, or the Form or Schedule and the date of its filing.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(1)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">Amount Previously Paid:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(2)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">Form, Schedule or Registration Statement No.:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(3)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">Filing Party:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 11pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">(4)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">Date Filed:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>




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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 14pt"><B>CORNERSTONE
STRATEGIC VALUE FUND, INC.<BR>
225 Pictoria Drive, Suite 450</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 14pt"><B>Cincinnati,
OH 45246</B></FONT><B> </B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->




<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 14pt"><B>NOTICE
OF ANNUAL MEETING OF STOCKHOLDERS<BR>
TO BE HELD ON APRIL 16, 2019</B></FONT></P>



<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">IMPORTANT NOTICE REGARDING THE AVAILABILITY
OF PROXY MATERIALS FOR THE ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON APRIL 16, 2019: THE NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
AND PROXY STATEMENT ARE AVAILABLE ON THE INTERNET AT HTTP://WWW.CORNERSTONESTRATEGICVALUEFUND.COM/DATA/SITES/21/MEDIA/DOCS/CLM_PROXY_FINAL.PDF.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">NOTICE IS HEREBY GIVEN that the Annual
Meeting of Stockholders (the &ldquo;Meeting&rdquo;) of Cornerstone Strategic Value Fund, Inc., a Maryland corporation (the &ldquo;Fund&rdquo;),
will be held at 11:30 a.m., Eastern Time, on April 16, 2019 at the First Floor Conference Room, 1075 Hendersonville Rd., Asheville,
NC 28803, for the following purposes:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px; font-size: 11pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; text-align: justify; font-size: 11pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">1.</FONT></TD>
    <TD>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To approve the election of two
directors to hold office until the year 2022 Annual Meeting of Stockholders (Proposal 1);</P></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 11pt; width: 24px">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-size: 11pt; width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 11pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">To approve a new investment management agreement with Cornerstone Advisors Asset Management LLC (Proposal 2); and</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To consider and vote upon such other matters as may properly come before said Meeting or any adjournment or postponement thereof.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Board of Directors has fixed the close
of business on February 19, 2019 as the record date for the determination of stockholders entitled to notice of, and to vote at,
this Meeting or any adjournment or postponement thereof. The stock transfer books will not be closed.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Copies of the Fund&rsquo;s most recent
annual and semi-annual reports are available free of charge for any stockholder by writing to the Fund, c/o Ultimus Fund Solutions,
LLC, 225 Pictoria Drive, Suite 450, Cincinnati, OH 45246, by calling (866) 668-6558, or by visiting the Fund&rsquo;s website at
www.cornerstonestrategicvaluefund.com.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 56%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 44%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">By Order of the Board of Directors</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Hoyt M. Peters</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Secretary</FONT></TD>
    </TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Dated: March 1, 2019</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>WHETHER OR NOT YOU EXPECT TO BE PRESENT
AT THE MEETING, PLEASE FILL IN, DATE, SIGN AND MAIL THE ENCLOSED PROXY CARD IN THE ENCLOSED REPLY ENVELOPE. YOUR PROMPT RESPONSE
WILL HELP ASSURE A QUORUM AT THE MEETING.</B></P>

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<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>INSTRUCTIONS FOR SIGNING PROXY CARDS</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following general rules for signing
proxy cards may be of assistance to you and avoid the time and expense to the Fund involved in validating your vote if you fail
to sign your proxy card properly.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">1.</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Individual Accounts: Sign your name exactly as it appears in the registration on the proxy card.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Joint Accounts: Either party may sign, but the name of the party signing should conform exactly to a name shown in the registration.</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Other Accounts: The capacity of the individual signing the proxy card should be indicated unless it is reflected in the form of registration. For example:</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>REGISTRATION</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 50%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 14pt"><B>CORPORATE
    ACCOUNTS</B></FONT></TD>
    <TD STYLE="width: 50%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 14pt"><B>VALID
    SIGNATURE</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.25in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1) ABC Corp.</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">ABC Corp (by John Doe, Treasurer)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.25in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(2) ABC Corp.</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">John Doe, Treasurer</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.25in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(3) ABC Corp. </FONT><BR>
<FONT STYLE="font-family: Times New Roman, Times, Serif">c/o John Doe, Treasurer</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">John Doe</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.25in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(4) ABC Corp. Profit Sharing Plan</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">John Doe, Trustee</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>TRUST ACCOUNTS</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1) ABC Trust</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Jane B. Doe, Trustee</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(2) Jane B. Doe, Trustee u/t/d/ 12/28/78</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Jane B. Doe</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>CUSTODIAL OR ESTATE ACCOUNTS</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.25in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1) John B. Smith, Cust. </FONT><BR>
<FONT STYLE="font-family: Times New Roman, Times, Serif">f/b/o John B. Smith, Jr. UGMA</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">John B. Smith</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(2) John B. Smith</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">John B. Smith, Jr., Executor</FONT></TD></TR>
</TABLE>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 14pt"><B>CORNERSTONE
STRATEGIC VALUE FUND, INC.<BR>
225 Pictoria Drive, Suite 450</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 14pt"><B>Cincinnati,
OH 45246</B></FONT><B> </B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 14pt"><B>PROXY
STATEMENT FOR ANNUAL MEETING OF STOCKHOLDERS<BR>
TO BE HELD ON APRIL 16, 2019</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 14pt"><B>GENERAL</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This Proxy Statement is furnished in connection
with the solicitation of proxies by the Board of Directors of Cornerstone Strategic Value Fund, Inc., a Maryland corporation (the
&ldquo;Fund&rdquo;) for use at the Annual Meeting of Stockholders for the year 2019 (the &ldquo;Meeting&rdquo;) to be held 11:30
a.m., Eastern Time, on April 16, 2019 at the First Floor Conference Room, 1075 Hendersonville Rd., Asheville, NC 28803, and at
any and all adjournments and postponements thereof. A form of proxy is enclosed herewith. This Proxy Statement and the accompanying
form of proxy are being first mailed to stockholders of the Fund (&ldquo;Stockholder(s)&rdquo;) on or about March 1, 2019.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any Stockholder who executes and delivers
a proxy may revoke it by written communication to the Secretary of the Fund at any time prior to its use or by voting in person
at the Meeting. Attendance by a Stockholder at the Meeting does not, in itself, revoke a proxy. Unrevoked proxies will be voted
in accordance with the specifications thereon and, unless specified to the contrary, will be voted FOR the election of Messrs.
Andrew A. Strauss and Glenn W. Wilcox, Sr. as nominees for Class III Director and FOR the approval of a new investment management
agreement with Cornerstone Advisors Asset Management LLC<B>.</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In general, abstentions and broker non-votes,
as defined below, count for purposes of obtaining a quorum but do not count as votes cast with respect to any proposal requiring
that the broker has discretion. With respect to a proposal requiring the affirmative vote of a majority of the Fund&rsquo;s outstanding
shares of common stock, the effect of abstentions and broker non-votes is the same as a vote against such proposal. Otherwise,
abstentions and broker non-votes have no effect on the outcome of a proposal. A broker non-vote is a proxy from a broker or nominee
indicating that such person has not received instructions from the beneficial owner or other person entitled to vote shares on
a particular matter with respect to which the broker or nominee does not have discretionary voting power.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At least a majority of the Fund&rsquo;s
Stockholders must be present at the Meeting in person or by proxy to constitute a quorum for the transaction of business by the
Fund. In the event that a quorum is not present at the Meeting, the persons named as proxies may propose one or more adjournments
of the Meeting from time to time. Any such adjournment will require the affirmative vote of a majority of those shares represented
at the Meeting in person or by proxy. The persons named as proxies will vote those proxies which they are entitled to vote FOR
or AGAINST any such proposal in their discretion.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Your vote is being solicited by the directors
of the Fund. The cost of soliciting these proxies will be borne by the adviser to the Fund by reimbursing the Fund for solicitation
costs. The Fund will reimburse brokerage firms and others for their expenses in forwarding proxy materials to the beneficial owners
and soliciting them to execute proxies.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The directors and officers of the Fund,
Ultimus Fund Solutions, LLC, the administrator to the Fund (the &ldquo;Administrator&rdquo;), and AST Fund Solutions, LLC may be
involved in the solicitation of proxies. The Fund does not reimburse such persons for the solicitation of proxies.</P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Fund expects that the solicitation
will be primarily by mail, but also may include telephone, electronic, oral or other means of communication. If the Fund does not
receive your proxy by a certain time, you may receive a telephone call from a proxy soliciting agent asking you to vote. </P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Only holders of issued and outstanding
shares of the Fund&rsquo;s common stock of record at the close of business on February 19, 2019 are entitled to notice of, and
to vote at, the Meeting. Each such holder is entitled to one vote per share of common stock so held. The number of shares of common
stock outstanding on February 19, 2019 was 72,812,780. The Fund is a diversified, closed-end management investment company.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Copies of the Fund&rsquo;s most recent
annual and semi-annual report may be ordered free of charge to any Stockholder by writing to the Fund, c/o Ultimus Fund Solutions,
LLC, 225 Pictoria Drive, Suite 450, Cincinnati, OH 45246, or by calling (866) 668-6558. This report is not to be regarded as proxy-soliciting
material.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This Proxy Statement is first being mailed
to Stockholders on or about March 1, 2019.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 14pt"><B>PROPOSAL
NO. 1<BR>
ELECTION OF DIRECTORS</B></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with the Fund&rsquo;s By-laws,
the Fund&rsquo;s Board of Directors is divided into three classes: Class I, Class II and Class III. Each class has a term of three
years and each year the term of office of one class expires. The effect of these staggered terms is to limit the ability of other
entities or persons to acquire control of the Fund by delaying the replacement of a majority of the Board of Directors.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At the Meeting, Stockholders will be asked
to elect two Class III Directors to hold office until the year 2022 Annual Meeting of Stockholders or thereafter until each of
their respective successors is duly elected and qualified. The term of office of the Class III Directors, currently consisting
of Mr. Andrew A. Strauss and Mr. Glenn W. Wilcox, Sr., will expire at the year 2022 Annual Meeting or thereafter until his respective
successor is duly elected and qualified. If elected, each nominee has consented to serve as a Director of the Fund until his successor
is duly elected and qualified. Each nominee was considered and recommended by the Fund&rsquo;s Nominating and Corporate Governance
Committee.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The persons named in the accompanying form
of proxy intend to vote at the Meeting (unless directed not to vote) FOR the election of each nominee. Each nominee has indicated
that he will serve if elected, and the Board of Directors has no reason to believe that either nominee named above will become
unavailable for election as a director, but if any nominee should be unable to serve, the proxy will be voted for any other person
determined by the persons named in the proxy in accordance with their judgment.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth the name,
address, birth date and principal occupation of each nominee for election as Director:</P>

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<P STYLE="font: bold 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">NOMINEES</P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="4" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="text-align: center; vertical-align: bottom">
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Name and</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Address(1)</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">(Birth Date)</P></TD>
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Position(s)</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">with Fund</P></TD>
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Term of</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Office Since</P></TD>
    <TD STYLE="width: 28%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Principal</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Occupation Over</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Past 5 Years</P></TD>
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Number of</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Portfolios</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">in Fund</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Complex</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Overseen</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">by Director</P></TD>
    <TD STYLE="width: 16%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Directorships</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Held by</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Nominee</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">for Director</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Outside of Fund</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Complex*</P></TD></TR>
<TR STYLE="vertical-align: top; background-color: Gainsboro">
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid">Class III Non-Interested Nominees to serve until the Year 2022 Annual Meeting of Stockholders:</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="border-bottom: Black 1pt solid">Andrew A. Strauss<BR>
(Nov. 1953)</TD>
    <TD STYLE="border-bottom: Black 1pt solid">Director; Chairman of Nominating and Corporate Governance and Audit Committee
    Committee Member</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">2001 </TD>
    <TD STYLE="border-bottom: Black 1pt solid">Attorney and senior member of Strauss Attorneys PLLC; Director of Cornerstone Total
    Return Fund, Inc.</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">2</TD>
    <TD STYLE="border-bottom: Black 1pt solid">None</TD></TR>
<TR STYLE="vertical-align: top; background-color: Gainsboro">
    <TD STYLE="border-bottom: Black 1pt solid">Glenn W. Wilcox, Sr. <BR>
(Dec. 1931)</TD>
    <TD STYLE="border-bottom: Black 1pt solid">Director; Chairman of Audit Committee and Nominating and Corporate Governance Committee Member</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">2001</TD>
    <TD STYLE="border-bottom: Black 1pt solid">Chairman of the Board of Tower Associates, Inc.; Chairman of the Board of Wilcox
    Travel Agency, Inc.; Chairman of the Board of Blue Ridge Printing Co., Inc. (from January 2019); Director of Champion
    Industries,     Inc.;     Director     of     Cornerstone     Total     Return     Fund,     Inc.</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">2</TD>
    <TD STYLE="border-bottom: Black 1pt solid">Champion Industries, Inc.</TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 20pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1)</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">The
mailing address of each Nominee with respect to Fund operations is c/o Ultimus Fund Solutions, LLC, 225 Pictoria Drive, Suite
450, Cincinnati, OH 45246.</FONT></TD>
</TR></TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 20pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
of December 31, 2018, the Fund Complex was comprised of the Fund and Cornerstone Total Return Fund, Inc. both of which are managed
by Cornerstone Advisors, Inc. (the &ldquo;Investment Adviser&rdquo;). Each of the above Directors oversees both of the Funds in
the Fund Complex.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>REMAINING BOARD OF DIRECTORS</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following tables set forth the name,
address, birth date, and principal occupation of each remaining Director of the Fund.</P>

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<TABLE CELLSPACING="0" CELLPADDING="4" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; width: 14%">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Name and</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Address(1)</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">(Birth Date)</P></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; width: 14%">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Position(s)</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">with Fund</P></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; width: 14%">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Term of</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Office Since</P></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; width: 28%">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Principal</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Occupation Over</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Past 5 Years</P></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; width: 14%">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Number of</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Portfolios</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">in Fund</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Complex</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Overseen</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">by Director</P></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid; width: 16%">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Directorships</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Held by</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Nominee</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">for Director</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Outside of Fund</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Complex*</P></TD>
    </TR>
<TR STYLE="background-color: Gainsboro">
    <TD COLSPAN="6" STYLE="vertical-align: top; border-bottom: Black 1pt solid">Class I Non-Interested Director to serve until the Year 2020 Annual Meeting of Stockholders:</TD>
    </TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">Edwin Meese III</P>
                                                                    <P STYLE="margin-top: 0; margin-bottom: 0">(Dec. 1931)</P></TD>
    <TD STYLE="border-bottom: Black 1pt solid; vertical-align: top">Director; Audit, Nominating and Corporate Governance Committee Member</TD>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid; text-align: center">2001</TD>
    <TD STYLE="border-bottom: Black 1pt solid; vertical-align: top">Ronald Reagan Distinguished Fellow Emeritus, The Heritage Foundation, Washington D.C.; Distinguished Visiting Fellow at the Hoover Institution, Stanford University; Director of Cornerstone Total Return Fund, Inc.</TD>
    <TD STYLE="border-bottom: Black 1pt solid; vertical-align: top; text-align: center">2</TD>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid">None</TD>
    </TR>
<TR STYLE="background-color: Gainsboro">
    <TD COLSPAN="6" STYLE="vertical-align: top; border-bottom: Black 1pt solid">Class I Interested Director to serve until the Year 2020 Annual Meeting of Stockholders:</TD>
    </TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">Ralph W. Bradshaw</P>
                                                                    <P STYLE="margin-top: 0; margin-bottom: 0">(Dec. 1950)**</P></TD>
    <TD STYLE="border-bottom: Black 1pt solid; vertical-align: top">Chairman of the Board of Directors and President</TD>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid; text-align: center">1998</TD>
    <TD STYLE="border-bottom: Black 1pt solid; vertical-align: top">President, Cornerstone Advisors, Inc.; Financial Consultant; President and Director of Cornerstone Total Return Fund, Inc.</TD>
    <TD STYLE="border-bottom: Black 1pt solid; vertical-align: top; text-align: center">2</TD>
    <TD STYLE="vertical-align: top; border-bottom: Black 1pt solid">None</TD>
    </TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 20pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">**</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.
Bradshaw is an &ldquo;interested person&rdquo; as defined in the Investment Company Act of 1940 because of his affiliation with
Cornerstone Advisors, Inc.</FONT></TD>
</TR></TABLE>


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<TABLE CELLSPACING="0" CELLPADDING="4" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Name and</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Address(1)</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">(Birth Date)</P></TD>
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Position(s)</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">with Fund</P></TD>
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Term
of</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Office Since</P></TD>
    <TD STYLE="width: 28%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Principal</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Occupation Over</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Past 5 Years</P></TD>
    <TD STYLE="width: 14%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Number
of</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Portfolios</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">in Fund</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Complex</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Overseen</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">by Director</P></TD>
    <TD STYLE="width: 16%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Directorships</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Held by</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Nominee</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">for Director</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Outside of Fund</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Complex*</P></TD></TR>
<TR STYLE="vertical-align: top; background-color: Gainsboro">
    <TD COLSPAN="6" STYLE="border-bottom: Black 1pt solid">Class II Non-Interested Directors to serve until the Year 2021 Annual Meeting of Stockholders:</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="border-bottom: Black 1pt solid">Robert E. Dean <BR>
(Apr. 1951)</TD>
    <TD STYLE="border-bottom: Black 1pt solid">Director; Audit, Nominating and Corporate Governance Committee Member</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">2014 </TD>
    <TD STYLE="border-bottom: Black 1pt solid">Director, National Bank Holdings Corp.; Director of Cornerstone Total Return Fund, Inc.</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">2</TD>
    <TD STYLE="border-bottom: Black 1pt solid">National Bank Holdings Corp.</TD></TR>
<TR STYLE="vertical-align: top; background-color: Gainsboro">
    <TD STYLE="border-bottom: Black 1pt solid">Matthew W. Morris <BR>
(May 1971)</TD>
    <TD STYLE="border-bottom: Black 1pt solid">Director; Audit, Nominating and Corporate Governance Committee Member </TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">2017</TD>
    <TD STYLE="border-bottom: Black 1pt solid">Chief Executive Officer, Stewart Information Services Corporation; Director of Cornerstone Total Return Fund, Inc.</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">2</TD>
    <TD STYLE="border-bottom: Black 1pt solid">Stewart Information Services Corporation</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="border-bottom: Black 1pt solid">Scott B. Rogers <BR>
(July 1955)</TD>
    <TD STYLE="border-bottom: Black 1pt solid">Director; Audit, Nominating and Corporate Governance Committee Member</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">2001</TD>
    <TD STYLE="border-bottom: Black 1pt solid">Chief Executive Officer, Asheville
    Buncombe Community Christian Ministry (&ldquo;ABCCM&rdquo;);  President, ABCCM Doctor&rsquo;s Medical Clinic; Director
    of Faith Partnerships Incorporated; Member of North Carolina     Governor&rsquo;s Council on Homelessness (from July 2014);
    Director of     Cornerstone     Total     Return     Fund, Inc.</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">2</TD>
    <TD STYLE="border-bottom: Black 1pt solid">None</TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 20pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1)</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">The
mailing address of each Nominee/Director with respect to Fund operations is c/o Ultimus Fund Solutions, LLC, 225 Pictoria Drive,
Suite 450, Cincinnati, OH 45246.</FONT></TD>
</TR></TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 20pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
of December 31, 2018, the Fund Complex was comprised of the Fund and Cornerstone Total Return Fund, Inc. both of which are managed
by Cornerstone Advisors, Inc. (the &ldquo;Investment Adviser&rdquo;). Each of the above Directors oversees both of the Funds in
the Fund Complex.</FONT></TD>
</TR></TABLE>
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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Board believes that the significance
of each Director&rsquo;s experience, qualifications, attributes or skills is an individual matter (meaning that experience that
is important for one Director may not have the same value for another) and that these factors are best evaluated at the Board level,
with no single Director, or particular factor, being indicative of the Board&rsquo;s effectiveness. The Board determined that each
of the Directors is qualified to serve as a Director of the Fund based on a review of the experience, qualifications, attributes
and skills of each Director. In reaching this determination, the Board has considered a variety of criteria, including, among other
things: character and integrity; ability to review critically, evaluate, question and discuss information provided, to exercise
effective business judgment in protecting stockholder interests and to interact effectively with the other Directors, the Investment
Adviser, other service providers, counsel and the independent registered accounting firm (&ldquo;independent auditors&rdquo;);
and willingness and ability to commit the time necessary to perform the duties of a Director. Each Director&rsquo;s ability to
perform his duties effectively is evidenced by his experience or achievements in the following areas: management or board experience
in the investment management industry or companies or organizations in other fields, educational background and professional training;
and experience as a Director of the Fund. In addition, the Board values the diverse skill sets and experiences that each Director
contributes. The Board considers that its diversity as a whole is as a result of a combination of Directors who are working in
the private, as opposed to public, sector, those that are retired from professional work and the various perspectives that each
Director provides as a result of his present experiences and his background. Information as of December 31, 2018 discussing the
specific experience, skills, attributes and qualifications of each Director which led to the Board&rsquo;s determination that the
Director should serve in this capacity is provided below.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">RALPH W. BRADSHAW. Mr. Bradshaw is co-founder
of Cornerstone Advisors, Inc. (the &ldquo;Investment Adviser&rdquo;) and has served as its President since its inception in 2001.
He brings over 25 years of extensive investment management experience and also formerly served as a director of several other closed-end
funds. Prior to founding the Investment Adviser, he served in consulting and management capacities for registered investment advisory
firms specializing in closed-end fund investments. His experiences include developing and implementing successful trading strategies
with a variety of underlying portfolios containing domestic and international equity and fixed-income investments. In addition,
he has been a financial consultant and has held managerial positions or operated small businesses in several industries. Mr. Bradshaw
holds a B.S. in Chemical Engineering and an M.B.A. Mr. Bradshaw provides the Board with effective business judgment and an ability
to interact effectively with the other Directors, as well as with the other service providers, counsel and the Fund&rsquo;s independent
auditor. Mr. Bradshaw commits a significant amount of time to the Fund as a Director and Officer, in addition to serving as President
of the Investment Adviser. The Board values his strong moral character and integrity.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ROBERT E. DEAN. Mr. Dean is a private investor.
From October 2000 to December 2003, Mr. Dean was with Ernst &amp; Young Corporate Finance LLC, a wholly owned broker-dealer subsidiary
of Ernst &amp; Young LLP, serving as a Senior Managing Director and member of the Board of Managers from December 2001 to December
2003. From June 1976 to September 2000, Mr. Dean practiced corporate, banking and securities law with Gibson, Dunn &amp; Crutcher
LLP. Mr. Dean was Partner-in-Charge of the Orange County, California office from 1993 to 1996 and was a member of the law firm&rsquo;s
Executive Committee from 1996 to 1999. Since June 2009, Mr. Dean has served as a director of National Bank Holdings Corporation
(NYSE:NBHC), a bank holding company, serving as chairman of the Nominating and Governance Committee and a member of the Audit &amp;
Risk and Compensation Committees. Mr. Dean holds a Bachelor of Arts degree from the University of California, Irvine and a Juris
Doctor degree from the University of Minnesota Law School. Mr. Dean&rsquo;s substantial experience in the public capital markets
and merger and acquisition transactions, regulatory matters and public company corporate governance matters qualifies him to serve
on the Board of Directors of the Fund. The Board values his strong moral character and integrity.</P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">EDWIN MEESE III. Mr. Meese is a Ronald
Reagan Distinguished Fellow Emeritus at The Heritage Foundation. He is also a Distinguished Visiting Fellow at The Hoover Institution,
Stanford University. He is the former chairman of the governing board of George Mason University in Virginia and serves on the
board of several civic and educational organizations. Previously, Mr. Meese served as the 75th Attorney General of the United States
and immediately prior to that as Counselor to the President of the United States for Ronald Reagan. Mr. Meese provides the Board
with effective business judgment and an ability to interact effectively with the other Directors, as well as with the Investment
Adviser, other service providers, counsel and the Fund&rsquo;s independent auditor. Mr. Meese has demonstrated a willingness to
commit the time necessary to serve as an effective Director. The Board values his strong moral character and integrity.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">MATTHEW W. MORRIS. Mr. Morris is the Chief
Executive Officer for Stewart Information Services Company (NYSE:STC), a title insurance and real estate services firm. Mr. Morris provides strategic leadership for the future of the company,
focusing on the people strategy, operational alignment, and smart growth and maximizing stockholder value. Mr. Morris originally
joined the company in 2004 as Senior Vice President, Planning &amp; Development. Previously, he was the Director of a strategic
litigation-consulting firm, offering trial and settlement sciences and crisis management. Mr. Morris received his BBA in Organizational
Behavior and Business Policy from Southern Methodist University and his MBA from the University of Texas with a concentration in
Finance. Mr. Morris has indicated his willingness to commit the time necessary to serve as an effective Director. The Board values
his strong moral character and integrity.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">SCOTT B. ROGERS. Reverend Rogers has been
the Executive Director of a regional community ministry organization for over 30 years. In addition to the leadership and management
skills obtained through this work, he contributes a non-profit perspective and community insight to the Board&rsquo;s discussions
and deliberations, which provides desirable diversity. Mr. Rogers provides the Board with effective business judgment and an ability
to interact effectively with the other Directors, as well as with the Investment Adviser, other service providers, counsel and
the Fund&rsquo;s independent auditor. Mr. Rogers has demonstrated a willingness to commit the time necessary to serve as an effective
Director. The Board values his strong moral character and integrity.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ANDREW A. STRAUSS. Mr. Strauss is an experienced
attorney with a securities law background. He currently manages a law firm specializing in estate planning, probate and estate
administration. In addition, Mr. Strauss served in an executive capacity with a large public company for over nine years. He is
a graduate of the Wharton School of the University of Pennsylvania and Georgetown University Law Center. Mr. Strauss provides the
Board with effective business judgment and an ability to interact effectively with the other Directors, as well as with the Investment
Adviser, other service providers, counsel and the Fund&rsquo;s independent auditor. Mr. Strauss has demonstrated a willingness
to commit the time necessary to serve as an effective Director. The Board values his strong moral character and integrity.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">GLENN W. WILCOX, SR. Mr. Wilcox has been
a business owner for over 55 years. He has previous business experience in real estate development, radio and oil and gas exploration
industries. He serves on the board of directors and audit committee of another public company. From 1996 until 2004, Mr. Wilcox
was a member of the board of Appalachian State University, and was chairman of the board from 2001-2003. He has been a private
investor in public equities for over 50 years. Mr. Wilcox provides the Board with effective business judgment and an ability to
interact effectively with the other Directors, as well as with the Investment Adviser, other service providers, counsel and the
Fund&rsquo;s independent auditor. Mr. Wilcox has demonstrated a willingness to commit the time necessary to serve as an effective
Director. The Board values his strong moral character and integrity.</P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Specific details regarding each Director&rsquo;s
principal occupations during the past five years are included in the table above. The summaries set forth above as to the experience,
qualifications, attributes and/or skills of the Directors do not constitute holding out the Board or any Director as having any
special expertise or experience, and do not impose any greater responsibility or liability on any such person or on the Board as
a whole than would otherwise be the case.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth, for each
Director, the aggregate dollar range of equity securities owned of the Fund and of all Funds overseen by each Director in the Fund
Complex as of December 31, 2018. The information as to beneficial ownership is based on statements furnished to the Fund by each
Director.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="2" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 40%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left">Name</P></TD>
    <TD STYLE="width: 30%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Dollar
Range of Equity</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Securities in the Fund</P></TD>
    <TD STYLE="width: 30%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Aggregate
Dollar</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Range of Equity in</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">All Funds Overseen</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">by Directors in Fund</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Complex</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>NON-INTERESTED DIRECTORS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: Gainsboro">
    <TD>Robert E. Dean</TD>
    <TD STYLE="text-align: center">0</TD>
    <TD STYLE="text-align: center">0</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>Edwin Meese III</TD>
    <TD STYLE="text-align: center">0</TD>
    <TD STYLE="text-align: center">0</TD></TR>
<TR STYLE="vertical-align: top; background-color: Gainsboro">
    <TD>Matthew W. Morris</TD>
    <TD STYLE="text-align: center">0</TD>
    <TD STYLE="text-align: center">0</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>Scott B. Rogers</TD>
    <TD STYLE="text-align: center">$50,001&ndash;$100,000</TD>
    <TD STYLE="text-align: center">$50,001&ndash;$100,000</TD></TR>
<TR STYLE="vertical-align: top; background-color: Gainsboro">
    <TD>Andrew A. Strauss</TD>
    <TD STYLE="text-align: center">0</TD>
    <TD STYLE="text-align: center">0</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>Glenn W. Wilcox, Sr.</TD>
    <TD STYLE="text-align: center">$10,001&ndash;$50,000</TD>
    <TD STYLE="text-align: center">$10,001&ndash;$50,000</TD></TR>
<TR STYLE="vertical-align: top; background-color: Gainsboro">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>INTERESTED DIRECTOR</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: Gainsboro">
    <TD>Ralph W. Bradshaw</TD>
    <TD STYLE="text-align: center">Over $100,000</TD>
    <TD STYLE="text-align: center">Over $100,000</TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXECUTIVE OFFICERS</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition to Mr. Bradshaw, the current
principal officers of the Fund are:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="4" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 18%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">Name and</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">Address(1)</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">(Birth Date)</P></TD>
    <TD STYLE="width: 18%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Position</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">with Fund</P></TD>
    <TD STYLE="width: 18%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Term
of</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Office Since</P></TD>
    <TD STYLE="width: 46%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Principal</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Occupation Over</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Past 5 Years</P></TD></TR>
<TR STYLE="vertical-align: top; background-color: Gainsboro">
    <TD>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">Rachel L. McNabb</P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">(Apr. 1980)</P></TD>
    <TD>Chief Compliance Officer</TD>
    <TD>2018</TD>
    <TD>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">Internal Audit Managing Senior of Camden
        Property Trust; Chief Compliance Officer of Cornerstone Advisors, Inc.; Chief Compliance Officer of Cornerstone Total Return
        Fund, Inc.</P></TD></TR>
</TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="4" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 18%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">Name and</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">Address(1)</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">(Birth Date)</P></TD>
    <TD STYLE="width: 18%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Position</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">with Fund</P></TD>
    <TD STYLE="width: 18%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Term
of</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Office Since</P></TD>
    <TD STYLE="width: 46%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Principal</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Occupation Over</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Past 5 Years</P></TD></TR>
<TR STYLE="vertical-align: top; background-color: Gainsboro">
    <TD><P STYLE="margin-top: 0; margin-bottom: 0">Hoyt M. Peters</P>
                                                            <P STYLE="margin-top: 0; margin-bottom: 0">(Sep. 1963)</P></TD>
    <TD>Secretary and Assistant Treasurer</TD>
    <TD>February 2019, 2013</TD>
    <TD>Vice President of AST Fund Solutions, LLC (2013&ndash;2018); Secretary of The Asia Pacific Fund, Inc. (2016&ndash;2018); Associate of Cornerstone Advisors, Inc. (June 2018 &ndash; December 2018); Vice President of Cornerstone Advisors, Inc. (since January 2019); Secretary (since February 2019) and Assistant Treasurer of Cornerstone Total Return Fund, Inc.</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">Theresa M. Bridge</P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">(Dec. 1969)</P></TD>
    <TD>Treasurer</TD>
    <TD>2018</TD>
    <TD>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">Vice President and Director of Financial
Administration of Ultimus Fund Solutions, LLC; Treasurer of Cornerstone Total Return Fund, Inc.</P></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 20pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
mailing address of each officer with respect to Fund operations is c/o Ultimus Fund Solutions, LLC, 225 Pictoria Drive, Suite
450, Cincinnati, OH 45246.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the federal securities laws, the
Fund is required to provide to Stockholders in connection with the Meeting information regarding compensation paid to the Directors
by the Fund as well as by the various other U.S. registered investment companies advised by the Fund&rsquo;s Investment Adviser
during its prior calendar year. The following table provides information concerning the compensation paid during the year ended
December 31, 2018, to each Director of the Fund in his capacity solely as a Director of the Fund. This information does not reflect
any additional monies received for a named individual serving in any other capacity to the Fund. Please note that the Fund has
no bonus, profit sharing, pension or retirement plans.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="2" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 25%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Name of Director</P></TD>
    <TD STYLE="width: 25%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Director
Since</P></TD>
    <TD STYLE="width: 25%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Aggregate</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Compensation<BR>
From Fund</P></TD>
    <TD STYLE="width: 25%; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Total
Compensation</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">from the Fund and</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Fund
        Complex*</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Paid to Director</P></TD></TR>
<TR STYLE="vertical-align: top; background-color: Gainsboro">
    <TD>Robert E. Dean</TD>
    <TD STYLE="text-align: center">2014</TD>
    <TD STYLE="text-align: center">$35,000</TD>
    <TD STYLE="text-align: center">$52,500</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>Glenn W. Wilcox, Sr.</TD>
    <TD STYLE="text-align: center">2001</TD>
    <TD STYLE="text-align: center">$35,000</TD>
    <TD STYLE="text-align: center">$52,500</TD></TR>
<TR STYLE="vertical-align: top; background-color: Gainsboro">
    <TD>Andrew A. Strauss</TD>
    <TD STYLE="text-align: center">2001</TD>
    <TD STYLE="text-align: center">$35,000</TD>
    <TD STYLE="text-align: center">$52,500</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>Edwin Meese III</TD>
    <TD STYLE="text-align: center">2001</TD>
    <TD STYLE="text-align: center">$35,000</TD>
    <TD STYLE="text-align: center">$52,500</TD></TR>
<TR STYLE="vertical-align: top; background-color: Gainsboro">
    <TD>Matthew W. Morris</TD>
    <TD STYLE="text-align: center">2017</TD>
    <TD STYLE="text-align: center">$31,196</TD>
    <TD STYLE="text-align: center">$47,066</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>Scott B. Rogers</TD>
    <TD STYLE="text-align: center">2001</TD>
    <TD STYLE="text-align: center">$35,000</TD>
    <TD STYLE="text-align: center">$52,500</TD></TR>
<TR STYLE="vertical-align: top; background-color: Gainsboro">
    <TD>Ralph W. Bradshaw</TD>
    <TD STYLE="text-align: center">1998</TD>
    <TD STYLE="text-align: center">$0</TD>
    <TD STYLE="text-align: center">$0</TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">*</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">For compensation purposes, the Fund Complex refers to the Fund and Cornerstone Total Return Fund, Inc. both of which were managed by Cornerstone Advisors, Inc. during the year ended December 31, 2018.</FONT></TD></TR>
</TABLE>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Director Transactions with Fund Affiliates.
</B>As of December 31, 2018, neither the Independent Directors nor members of their immediate family owned securities beneficially
or of record in Cornerstone Advisors, Inc., or an affiliate of Cornerstone Advisors, Inc. Furthermore, over the past five years,
neither the Independent Directors nor members of their immediate family have any direct or indirect interest, the value of which
exceeds $120,000, in Cornerstone Advisors, Inc. or any of its affiliates. In addition, since the beginning of the last two fiscal
years, neither the Independent Directors nor members of their immediate family have conducted any transactions (or series of transactions)
or maintained any direct or indirect relationship in which the amount involved exceeds $120,000 and to which Cornerstone Advisors,
Inc. or any affiliate thereof was a party.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>BOARD COMPOSITION AND LEADERSHIP STRUCTURE</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Board consists of seven individuals,
one of whom is an Interested Director. The Chairman of the Board, Mr. Bradshaw, is the Interested Director and is the President
of the Fund, the President of the Investment Adviser, and is the President and a director of Cornerstone Total Return Fund, Inc.
and, until its merger with and into the Fund, Cornerstone Progressive Return Fund, respectively. The Board does not have a lead
independent director.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Board believes that its structure facilitates
the orderly and efficient flow of information to the Directors from the Investment Adviser and other service providers with respect
to services provided to the Fund, potential conflicts of interest that could arise from these relationships and other risks that
the Fund may face. The Board further believes that its structure allows all of the Directors to participate in the full range of
the Board&rsquo;s oversight responsibilities. The Board believes that the orderly and efficient flow of information and the ability
to bring each Director&rsquo;s talents to bear in overseeing the Fund&rsquo;s operations is important, in light of the size and
complexity of the Fund and the risks that the Fund faces. The Board and its committees review their structure regularly, to help
ensure that it remains appropriate as the business and operations of the Fund and the environment in which the Fund operates changes.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Currently, the Board has an Audit Committee
and a Nominating and Corporate Governance Committee. The responsibilities of each committee and its members are described below.
Each of the Directors attended at least seventy-five (75%) percent of the four (4) meetings of the Board of Directors (including
regularly scheduled and special meetings) held during the period for which he was a member. Each director attended all four (4)
meetings of its committees (including regularly scheduled and special meetings) held during the period for which he was a member.
The Board does not have a policy regarding Directors&rsquo; attendance at the Annual Stockholders Meeting, but all are invited
to attend.</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 0pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->


<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>THE AUDIT COMMITTEE</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Fund has a standing Audit Committee
(the &ldquo;Audit Committee&rdquo;), which is comprised of Messrs. Dean, Meese III, Morris, Rogers, Strauss, and Wilcox, Sr., all
of whom are Directors who are not interested persons of the Fund, as such term is defined in Section 2(a)(19) of the Investment
Company Act of 1940, as amended. The Audit Committee has a written charter. The principal functions of the Audit Committee include
but are not limited to, (i) the oversight of the accounting and financial reporting processes of the Fund and its internal control
over financial reporting; (ii) the oversight of the quality and integrity of the Fund&rsquo;s financial statements and the independent
audit thereof; and (iii) the approval, prior to the engagement of, the Fund&rsquo;s independent registered public accounting firm
and, in connection therewith, to review and evaluate the qualifications, independence and performance of the Fund&rsquo;s independent
registered public accounting firm. The Audit Committee convened four (4) times during the 2018 calendar year.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Audit Committee currently does not
have an Audit Committee Financial Expert, as such term is defined in Section 407 of the Sarbanes-Oxley Act of 2002. Rather, the
Audit Committee members believe that each of their individual experiences provide the Audit Committee with sufficient experience
and expertise to allow them to perform their duties as members of the Audit Committee.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The responsibilities of the Audit Committee,
as approved by the Directors, are set forth in the Audit Committee Charter, a copy of which is available on the Fund&rsquo;s website
at http://www.cornerstonestrategicvaluefund.com/Data/Sites/21/media/docs/Audit_Charter.pdf, under the section &ldquo;Corporate
Governance &ndash; Audit Committee Charter.&rdquo;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>THE NOMINATING AND CORPORATE GOVERNANCE
COMMITTEE</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Fund has a standing Nominating and
Corporate Governance Committee (the &ldquo;N&amp;CG Committee&rdquo;), which is comprised of Messrs. Dean, Meese III, Morris, Rogers,
Strauss, and Wilcox, Sr., all of whom are Directors who are not interested persons of the Fund, as such term is defined in Section
2(a)(19) of the Investment Company Act of 1940, as amended. The N&amp;CG Committee has a written charter. In addition to its responsibility
to oversee the corporate governance of the Fund, the N&amp;CG Committee is appointed to identify and select qualified candidates
that have exhibited strong decision making ability, substantial business experience, relevant knowledge of the investment company
industry (including closed-end funds), skills or technological expertise and exemplary personal integrity and reputation. In addition,
the N&amp;CG Committee seeks candidates that have experience and knowledge involving all of the service providers of a registered
investment company.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The N&amp;CG Committee will consider all
nominees recommended by Stockholders of the Fund, so long as Stockholders send their recommendations in writing to the Secretary
of the Fund in a manner consistent with the Fund&rsquo;s By-laws. The N&amp;CG Committee will seek candidates for the Board that
have exhibited strong decision-making ability, substantial business experience, relevant knowledge, skills or technological expertise,
and exemplary personal integrity and reputation. Specifically, the N&amp;CG Committee assesses all director nominees taking into
account several factors, including, but not limited to, issues such as the current needs of the Board and the nominee&rsquo;s:
(i) integrity, honesty, and accountability; (ii) successful leadership experience and strong business acumen; (iii) forward-looking,
strategic focus; (iv) collegiality; (v) independence and absence of conflicts of interests; and (vi) ability to devote necessary
time to meet director responsibilities. The N&amp;CG Committee does not have a policy with regard to considering diversity when
identifying candidates for election, but would expect to consider race, gender and professional experience diversity when identifying
future candidates. The N&amp;CG Committee will ultimately recommend nominees that it believes will enhance the Board&rsquo;s ability
to oversee, in an effective manner, the affairs and business of the Fund. The N&amp;CG Committee will consider and evaluate Stockholder-recommended
candidates by applying the same criteria used to evaluate director-recommended candidates. The deadline for submitting a Stockholder
proposal for inclusion in the Fund&rsquo;s proxy statement and proxy for the Fund&rsquo;s 2020 annual meeting of stockholders pursuant
to Rule 14a-8 promulgated under the Securities Exchange Act of 1934, is November 1, 2019. Stockholders wishing to submit proposals
or director nominations that are to be included in such proxy statement and proxy must deliver notice to the Secretary at the principal
executive offices of the Fund no later than the close of business on November 1, 2019. Stockholders are also advised to review
the Fund&rsquo;s By-laws, which contain additional requirements with respect to advance notice of Stockholder proposals and director
nominations.</P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In 2019, the N&amp;CG Committee met and
discussed the nomination of the Class III Directors of the Fund for the 2019 Annual Meeting of Stockholders. The Nominees were
recommended by the N&amp;CG Committee, comprised of the non-interested Directors. The N&amp;CG Committee convened four (4) times
during the 2018 calendar year.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The responsibilities of the N&amp;CG Committee,
as approved by the Directors, are set forth in the N&amp;CG Committee Charter, a copy of which is available on the Fund&rsquo;s
website at: http://www.cornerstonestrategicvaluefund.com/Data/Sites/21/media/docs/Nominating_Charter.pdf, under the section &ldquo;Corporate
Governance - Nominating and Corporate Governance Committee Charter.&rdquo;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>BOARD&rsquo;S ROLE IN RISK OVERSIGHT
OF THE FUND</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Board oversees risk management for
the Fund directly and, as to certain matters, through its Audit and Nominating and Corporate Governance Committees. The Board exercises
its oversight in this regard primarily through requesting and receiving reports from and otherwise working with the Fund&rsquo;s
senior officers (including the Fund&rsquo;s Chief Compliance Officer), portfolio management personnel of the Investment Adviser,
the Fund&rsquo;s independent auditors, legal counsel and personnel from the Fund&rsquo;s other service providers. The Board has
adopted, on behalf of the Fund, and periodically reviews with the assistance of Fund personnel, policies and procedures designed
to address certain risks associated with the Fund&rsquo;s activities. In addition, the Investment Adviser and the Fund&rsquo;s
other service providers have also adopted policies, processes and procedures designed to identify, assess and manage certain risks
associated with the Fund&rsquo;s activities, and the Board receives reports from service providers with respect to the operation
of these policies, processes and procedures as required and/or as the Board deems appropriate. The Board does not believe that
a separate Risk Oversight Committee is necessary for effective risk oversight at this time, but intends to continuously evaluate
how it assesses risk and consider whether any changes to the current structure are prudent.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>REQUIRED VOTE</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Directors are elected by a plurality of
the votes cast by the holders of shares of common stock of the Fund present in person or represented by proxy at a meeting with
a quorum present. For purposes of the election of Directors, abstentions and broker non-votes will be counted as shares present
for quorum purposes, may be considered votes cast, and may affect the plurality vote required for Directors.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>THE BOARD OF DIRECTORS RECOMMENDS THAT
THE STOCKHOLDERS VOTE &ldquo;FOR&rdquo; THE ELECTION OF MESSRS. ANDREW A. STRAUSS AND GLENN W. WILCOX, SR. AS CLASS III DIRECTORS
OF THE FUND.</B></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 75pt"><B>PROPOSAL 2</B></TD><TD STYLE="width: 15pt; text-align: left"><B>&mdash;</B></TD><TD><B>TO APPROVE A NEW INVESTMENT
MANAGEMENT AGREEMENT WITH CORNERSTONE ADVISORS ASSET MANAGEMENT LLC</B></TD>
</TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Introduction</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">You are being asked to approve a new investment
management agreement (the &ldquo;New Management Agreement&rdquo;) between the Fund and Cornerstone Advisors Asset Management LLC
(the &ldquo;New Investment Adviser&rdquo;). Under the Fund&rsquo;s current investment management agreement with Cornerstone Advisors,
Inc. (the &ldquo;Current Adviser&rdquo;) (the &ldquo;Current Management Agreement&rdquo;), the Current Adviser carries out the
investment and reinvestment of the assets of the Fund, continuously furnishes an investment program with respect to the Fund, determines
which securities should be purchased, sold or exchanged, and implements such determinations.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Current Adviser has acted as the
Fund&rsquo;s Investment Adviser since 2001, and has its principal office at 1075 Hendersonville Road, Suite 250, Asheville,
NC 28803. The Current Adviser was organized in February 2001, to provide investment management services to closed-end
investment companies and is registered with the U.S. Securities and Exchange Commission (&ldquo;SEC&rdquo;) under the
Investment Advisers Act of 1940, as amended. The Current Adviser is the investment adviser to one other closed-end fund,
Cornerstone Total Return Fund, Inc. Messrs. Ralph W. Bradshaw and Gary A. Bentz are the only stockholders of the Current
Adviser.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. Bentz, one of the two owners of the Current Adviser, has indicated that he is considering different options with respect
to his future endeavors and, if the New Management Agreement is approved by the Fund's stockholders and the Reorganization
(as defined in the paragraph below) is completed, Mr. Bentz would prefer to provide non-advisory consulting services on an
as-needed basis to the New Investment Adviser and devote the bulk of his time to other ventures. The Reorganization (as defined
in the paragraph below) would allow for Mr. Bentz's transition to a non-advisory consulting role while also creating a new
entity (the New Investment Adviser) that can employ the same portfolio managers and other personnel that are currently employed
by the Current Adviser in connection with the investment advisory services it provides the Fund.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At a meeting held on Friday, February 8,
2019, the Board of Directors of the Fund, including all of the independent directors who are not &ldquo;interested&rdquo; persons
as such term is defined in the Investment Company Act of 1940, as amended (the &ldquo;1940 Act&rdquo;)(the &ldquo;Independent Directors&rdquo;),
approved the New Management Agreement to be entered into between the Fund and the New Investment Adviser. The Independent Directors&rsquo;
considerations are set forth below. The New Investment Adviser is owned by the Cornerstone Trust, a trust established on January
29, 2019. The trustees of the Cornerstone Trust include, but are not limited to, Messrs. Ralph W. Bradshaw, Joshua G. Bradshaw
and Daniel W. Bradshaw. It is anticipated that the New Investment Adviser&rsquo;s name will be changed to Cornerstone Advisors
LLC upon completion of the reorganization described above (the &ldquo;Reorganization&rdquo;). It is anticipated that the Reorganization
will be completed in 2019. Subject to stockholder approval of the New Management Agreement, the New Investment Adviser will become
the Fund&rsquo;s investment adviser upon completion of the Reorganization.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Reorganization is being considered
as a change of control of the Current Adviser and therefore would constitute an &ldquo;assignment&rdquo; (as defined in the 1940
Act) of the Fund&rsquo;s Current Management Agreement. As required by the 1940 Act, the Current Management Agreement provides for
its automatic termination in the event of an assignment. Accordingly, the Current Management Agreement will terminate upon the
completion of the Reorganization. You are being asked to approve the New Management Agreement to enable the New Investment Adviser
to manage the Fund following the completion of the Reorganization. The New Investment Adviser&rsquo;s registration as an investment
adviser must be declared effective by the SEC prior to the completion of the Reorganization.
If stockholders approve the New Management Agreement prior to the effective date of the New Investment Adviser&rsquo;s registration
as an investment adviser, the Current Management Agreement will continue to be in effect until the New Management Agreement becomes
effective upon the completion of the Reorganization. In the event that the New Management Agreement is not approved by stockholders
or the Reorganization is not completed, the Current Adviser will continue to serve as investment adviser of the Fund pursuant to
the terms of the Current Management Agreement.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>There will be no increase
in management fees as a result of the New Management Agreement for the Fund. The New Investment Adviser is in agreement with
and committed to the ongoing distribution policy carried out by the Fund under the direction of the Board of Directors. The
Reorganization is not expected to have a material adverse impact on the nature, extent, or quality of the services provided
by the New Investment Adviser to the Fund, although there can be no assurances that the New Investment Adviser will not be
affected by the Reorganization. </B></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Reorganization</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Messrs. Ralph W. Bradshaw and Gary A. Bentz
are the only stockholders of Cornerstone Advisors, Inc. Mr. Ralph W. Bradshaw is President and Chairman of the Board of Directors
of the Fund. Mr. Gary A. Bentz is Assistant Treasurer of the Fund. After the completion of the Reorganization, Messrs. Ralph W.
Bradshaw, Joshua G. Bradshaw and Daniel W. Bradshaw will continue to be the Fund&rsquo;s portfolio managers and officers of the
Fund. Mr. Bentz will become a consultant on non-advisory matters only to the New Investment Adviser.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Impact of the New Investment Adviser
on the Fund </B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Reorganization will not result in any
material changes in the manner in which the New Investment Adviser provides investment management services to the Fund or the personnel
providing services to the Fund. The New Investment Adviser will remain based in Asheville, North Carolina. The New Investment Adviser
will continue to carry out the investment and reinvestment of the assets of the Fund, continuously furnish an investment program
with respect to the Fund, determine which securities should be purchased, sold or exchanged, and implement such determinations.
No major changes to the New Investment Adviser&rsquo;s executive management, investment management, administration, compliance,
and other personnel are anticipated as a direct result of the Reorganization. Similarly, no changes to the Fund&rsquo;s portfolio
managers are anticipated as a direct result of the Reorganization.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Information Concerning the Parties
to the Reorganization </I></B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Adviser.</I></B> The Current
Adviser is located at 1075 Hendersonville Road, Suite 250, Asheville, North Carolina 28803. The Current Adviser began conducting
business in February 2001 and manages one other closed-end fund with combined total assets with the Fund, of approximately $1,157.1
million, as of December 31, 2018. The New Investment Adviser was organized on January 29, 2019.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Comparison of New Management Agreement
with Current Management Agreement </B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A form of the proposed New Management
Agreement is attached hereto as Exhibit A. The terms of the New Management Agreement are substantially identical to the terms
of the Current Management Agreement, except for the dates of execution and effectiveness. The stated management fees to be
paid by the Fund are identical under the Current Management Agreement and the New Management Agreement. The material terms of
the New Management Agreement are discussed below. For purposes of the discussion below the term &ldquo;adviser&rdquo; refers
to the Current Adviser and the New Investment Adviser.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Investment Management Services.</I></B>
Each of the Current Management Agreement and the New Management Agreement provides that, subject to the supervision of the Fund&rsquo;s
Board, the adviser regularly provides the Fund with investment research, advice, management and supervision, and furnishes a continuous
investment program for the Fund&rsquo;s portfolio of securities and other investments consistent with the Fund&rsquo;s investment
objectives, policies and restrictions. The adviser determines what securities and other investments will be purchased,
retained or sold by the Fund and implements those decisions, all subject to the provisions of the Fund&rsquo;s governing documents,
the 1940 Act and any specific policies adopted by the Fund&rsquo;s Board and disclosed to the adviser.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 11pt">Under each
of the Current Management Agreement and the New Management Agreement, the adviser is authorized, for the purchase and sale of the
Fund&rsquo;s portfolio services, to employ such dealers and brokers as may, in the judgment of the adviser, implement the policy
of the Fund to obtain the best results taking into account such factors as price, including dealer spread, the size, type and difficulty
of the transaction involved, the firm&rsquo;s general execution and operational facilities and the firm&rsquo;s risk in positioning
the securities involved. Consistent with this policy, the adviser is authorized to direct the execution of the Fund&rsquo;s portfolio
transactions to dealers and brokers furnishing statistical information or research deemed by the adviser to be useful or valuable
to the performance of its investment advisory functions for the Fund. It is understood that in these circumstances, as contemplated
by Section 28(e) of the Securities Exchange Act of 1934, the commissions paid may be higher than those that the Fund might otherwise
have paid to another broker if those services had not been provided. Information so received will be in addition to and not in
lieu of the services required to be performed by the adviser. It is understood that the expenses of the adviser will not necessarily
be reduced as a result of the receipt of such information or research. Research services furnished to the a</FONT>dviser <FONT STYLE="font-size: 11pt">by
brokers who effect securities transactions for the Fund may be used by the a</FONT>dviser <FONT STYLE="font-size: 11pt">in servicing
other investment companies and accounts that it manages. Similarly, research services furnished to the a</FONT>dviser <FONT STYLE="font-size: 11pt">by
brokers who effect securities transactions for other investment companies and accounts that the a</FONT>dviser <FONT STYLE="font-size: 11pt">manages
may be used by the a</FONT>dviser <FONT STYLE="font-size: 11pt">in servicing the Fund. It is understood that not all of these research
services are used by the a</FONT>dviser <FONT STYLE="font-size: 11pt">in managing any particular account, including the Fund.</FONT></P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each of the Current Management Agreement
and the New Management Agreement provides that the adviser will also advise the Fund with respect to all matters relating to the
Fund&rsquo;s use of leveraging techniques, monitor the performance of the Fund&rsquo;s outside service providers, including the
Fund&rsquo;s administrator, transfer agent and custodian, be responsible for compliance by the Fund with U.S. federal, state and
other applicable laws and regulations, and pay the salaries, fees and expenses of such of the Fund&rsquo;s directors, officers
or employees who are directors, officers or employees of the adviser or any of its affiliates, except that the Fund will bear travel
expenses or an appropriate portion thereof of directors and officers of the Fund who are directors, officers or employees of the
adviser, to the extent that such expenses relate to attendance at meetings of the Board of Directors or any committees thereof.
The adviser may delegate any of the foregoing responsibilities to a third party with the consent of the Board of Directors.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each of the Current Management Agreement
and the New Management Agreement provides that the adviser shall not be deemed to have assumed or have responsibility for any functions
specifically assumed by any administrator, transfer agent, fund accounting agent, custodian, stockholder servicing agent or other
agent employed by the Fund to perform such functions.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Fees.</I></B> As noted above, the
stated management fees to be paid by the Fund and the method of calculation are identical under the  Current Management
Agreement and the New Management Agreement. The adviser is entitled to receive a monthly fee at the annual rate of 1.00% of the
Fund&rsquo;s average weekly net assets.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Payment of Expenses.</I></B> Each
of the Current Management Agreement and the New Management Agreement requires the adviser to furnish all necessary services, facilities
and personnel in connection with the performance of its services under the agreement, and states that, except as specifically indicated
therein, the adviser is not responsible for any of the Fund&rsquo;s ordinary or extraordinary expenses. Each of the Current Management
Agreement and the New Management Agreement states that the adviser will pay or reimburse the Fund for compensation paid to the
Directors who are affiliated persons of the adviser and officers of the Fund as such, except as the Board may decide.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Potential Conflicts of Interest.</I></B>
The Fund has adopted procedures under Rule 17a-7 of the 1940 Act to permit purchase and sales transactions to be effected between
the Fund and other accounts that are managed by the adviser. The Fund may from time to time engage in such transactions in accordance
with these procedures.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each of the Current Management Agreement
and the New Management Agreement also provides that securities considered as investments for the Fund may also be appropriate for
other investment accounts managed by the adviser or its affiliates. Whenever decisions are made to buy or sell securities by the
Fund and one or more of such other accounts simultaneously, the adviser will allocate the security transactions (including &ldquo;hot&rdquo;
issues) in a manner which it believes to be equitable under the circumstances. As a result of such allocations, there may be instances
where the Fund will not participate in a transaction that is allocated among other accounts. If an aggregated order cannot be filled
completely, allocations will generally be made on a pro rata basis. An order may not be allocated on a pro rata basis where, for
example: (i) consideration is given to an account with specialized investment policies that coincide with the particulars of a
specific investment; (ii) pro rata allocation would result in odd-lot or de minimis amounts being allocated to a portfolio or other
client; or (iii) where the adviser reasonably determines that departure from a pro rata allocation is advisable. While these aggregation
and allocation policies could have a detrimental effect on the price or amount of the securities available to the Fund from time
to time, it is the opinion of the Directors of the Fund that the benefits from the adviser&rsquo;s organization outweigh any disadvantage
that may arise from exposure to simultaneous transactions.</P>

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    <!-- Field: /Page -->


<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Limitation on Liability.</I></B>
Each of the Current Management Agreement and the New Management Agreement states that the adviser shall exercise its best judgment
in rendering the services in accordance with the terms of the agreement and that the adviser shall not be liable for any error
of judgment or mistake of law or for any act or omission or any loss suffered by the Fund in connection with the matters to which
the agreement relates. This limitation of liability applies to affiliates, partners, stockholders, directors, officers and employees
of the adviser and its affiliates who may perform services for the Fund contemplated by both the Current Management Agreement and
the New Management Agreement. Neither of the adviser nor any other such person is protected, however, from liability by reason
of its willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of its reckless disregard
of its obligations and duties under the Current Management Agreement and the New Management Agreement.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Term and Continuance. </I></B>The
Current Management Agreement has been in effect for an initial term of two years and for successive one-year periods subject to
such continuance being approved annually in the manner required by the 1940 Act. If approved by stockholders prior to the completion
of the Reorganization, the Fund&rsquo;s New Management Agreement will go into effect upon the completion of the Reorganization.
and, unless terminated in accordance with its terms, will stay in effect for an initial two-year term. If not terminated, the New
Management Agreement will continue in effect from year to year if such continuance is specifically approved at least annually (a)
by the Board, or (b) by a vote of a majority of the outstanding voting securities of the Fund, provided that in either event the
continuance also is approved by a majority of the Directors who are not interested persons of a party to the New Management Agreement.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Termination.</I></B> Each of the
Current Management Agreement and the New Management Agreement (a) may terminated at any time, without penalty, by the Fund&rsquo;s
Board of Directors, by vote of holders of a majority of the outstanding voting securities (as defined in the 1940 Act) of the Fund
or by the adviser, upon sixty (60) days&rsquo; written notice delivered to each party hereto, and (b) shall automatically be terminated
in the event of its assignment (as defined in the 1940 Act).</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Board Considerations Regarding Approval
of the New Management Agreement</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Board has evaluated the Reorganization
and the New Management Agreement for the Fund. In connection with their evaluation of the Reorganization and the New Management
Agreement for the Fund, the Independent Directors requested such information as they deemed reasonably necessary, including: (a)
the structure of the New Investment Adviser and the reasons for Reorganization; (b) the effect of the Reorganization on the ongoing
services provided to the Fund; (c) the stability and continuity of the New Investment Adviser&rsquo;s management and key employees;
(d) the post-Reorganization financial resources of the New Investment Adviser; (e) the nature, quality and extent of the services
to be provided by New Investment Adviser; (f) the cost to the New Investment Adviser for providing such services, with special
attention to the New Investment Adviser&rsquo;s potential profitability (and whether the New Investment Adviser may realize any
economies of scale); (g) the direct and indirect benefits that may be received by the New Investment Adviser from its relationship
with the Fund; and (h) comparative information as to the management fees, expense ratios and performance of other similarly situated
closed-end investment companies.</P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Independent Directors also requested
and obtained the following information in connection with their evaluation of the New Investment Adviser and the New Management
Agreement for the Fund: (i) memoranda provided by Fund counsel that summarized the legal standards and other considerations that
are relevant to the Directors in their deliberations regarding the New Management Agreement; (ii) the qualifications of the investment
management team for the Fund; (iii) the Fund&rsquo;s management fee and total expense ratio, the financial resources of the New
Investment Adviser and the anticipated profitability analysis from the New Investment Adviser. In addition, the Independent Directors
considered the information provided at regularly scheduled meetings throughout the year regarding the Fund&rsquo;s performance
and risk attributes, including through meetings with investment management personnel, and took into account other information related
to the Fund provided to the Independent Directors at regularly scheduled meetings. The Independent Directors also considered information
they had received in their review of the continuance of the Current Management Agreement for the Fund in February 2019.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Nature, Extent and Quality of Services.
</I></B>The Independent Directors considered the nature, extent and quality of the services that had been provided by the Current
Adviser to the Fund and that are expected to be provided by the New Investment Adviser to the Fund following the completion of
the Reorganization. The Independent Directors reviewed the terms of the New Management Agreement, and noted that such terms are
substantially identical to the terms of the Current Management Agreement, except for different execution and effective dates. The
Independent Directors reviewed the New Investment Adviser&rsquo;s investment approach for the Fund and its research process and
concluded that these would be unchanged from those of the Current Adviser. The Independent Directors considered the resources of
the New Investment Adviser and the personnel of the New Investment Adviser who provide investment management services to the Fund
noting that that the portfolio managers would remain unchanged. They also reviewed the non-investment resources and personnel of
the New Investment Adviser that are involved in the New Investment Adviser&rsquo;s services to the Fund, including the New Investment
Adviser&rsquo;s compliance and administration resources and personnel.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Independent Directors considered that
the New Investment Adviser will continue to supervise and monitor the performance of the Fund&rsquo;s service providers and will
continue to provide the Fund with personnel (including Fund officers) and other resources that are necessary for the Fund&rsquo;s
business management and operations. The Independent Directors also considered that the New Investment Adviser will continue to
provide those investment management and research services and resources to the Fund following the completion of the Reorganization.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Independent Directors considered that
the Reorganization will not have a material adverse impact on the nature, scope and overall quality of services provided to the
Fund and its stockholders, including investment management, risk management, administrative, compliance and other services.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Based on these considerations, the Independent
Directors concluded that the nature, extent and quality of services that the New Investment Adviser will provide to the Fund under
the New Management Agreement will be satisfactory and consistent with the terms of the Current Management Agreement.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Performance of the Fund. </I></B>In
considering the Fund&rsquo;s anticipated performance under the New Management Agreement, the Independent Directors noted that they
regularly reviewed and discussed throughout the year data prepared by the Current Adviser and information comparing
the Fund&rsquo;s performance with the performance of the S&amp;P 500 Index. The Independent Directors also noted that they
expect that the New Investment Adviser will continue to provide the same level of performance as the Current Adviser has
provided the Fund in the past. The Independent Directors noted that the New Investment Adviser&rsquo;s experience and
expertise with respect to the Fund&rsquo;s managed distribution program, the Fund&rsquo;s historic premium to net asset value
and the success of previously completed rights offerings were factors in their deliberations concerning the approval of the
New Management Agreement. The Independent Directors also considered that the New Investment Advisor is in agreement with
and committed to the ongoing distribution policy carried out by the Fund under the direction of the Board of Directors.</P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Management Fee and Expenses. </I></B>The
Independent Directors noted that the stated management fee to be paid by the Fund to the New Investment Adviser is identical under
the Current Management Agreement and the New Management Agreement. The Independent Directors considered information showing the
fees and expenses of the Fund in comparison to the management fees and expense ratios of its peer group of funds. To the extent
applicable, the Independent Directors also considered the impact of transfer agency, custodian, fund accounting, fund administration,
and other non-management fee expenses on the expense ratios of the Fund.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Independent Directors concluded that
the management fee to be paid by the Fund to the New Investment Adviser was not unreasonable in relation to the nature and quality
of the services to be provided by the New Investment Adviser.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Profitability. </I></B>The Independent
Directors considered information provided by the New Investment Adviser regarding the anticipated profitability of the New Investment
Adviser with respect to the advisory services to be provided by the New Investment Adviser to the Fund. The Independent Directors
also considered the New Investment Adviser&rsquo;s anticipated profit margin in connection with the overall operation of the Fund.
The Independent Directors concluded that the New Investment Adviser&rsquo;s anticipated profitability with respect to the management
of the Fund would not be unreasonable or excessive.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Section 15(f) Considerations. </I></B>The
New Investment Adviser intends to rely, to the extent appropriate, on Section 15(f) of the 1940 Act, which provides a non-exclusive
safe harbor whereby an investment adviser (such as the Current Adviser) to an investment company (such as the Fund) or an affiliate
of such investment adviser may receive payment or benefit in connection with the sale of an interest in the investment adviser
if two conditions are satisfied. The first condition of Section 15(f) is that during the three-year period following the Reorganization,
at least 75% of the investment company&rsquo;s board must not be &ldquo;interested persons&rdquo; (as defined in the 1940 Act)
of the investment adviser or its predecessor. The Board of Directors currently meets this requirement as six of the seven the directors
are independent and will continue to be independent for the period required. Second, no &ldquo;unfair burden&rdquo; can be imposed
on the investment company as a result of the Reorganization. An &ldquo;unfair burden&rdquo; includes: any arrangement during the
two-year period after the Reorganization where the investment adviser (or predecessor or successor adviser), or any of its &ldquo;interested
persons&rdquo; (as defined in the 1940 Act), receives or is entitled to receive any compensation, directly or indirectly, (i) from
any person in connection with the purchase or sale of securities or other property to, from or on behalf of the investment company
(other than bona fide ordinary compensation as principal underwriter for the investment company), or (ii) from the investment company
or its shareholders (other than fees for bona fide investment advisory or other services). The Independent Directors determined
that there was no &ldquo;unfair burden&rdquo; imposed as a result of the Reorganization, and that they will ensure that this condition
will continue to be satisfied for the required time period.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Conclusion. </I></B>After consideration
of the factors described above as well as other factors, the Directors, including the Independent Directors, concluded that the
New Management Agreement for the Fund, including the management fees payable thereunder, was fair, not unreasonable and in the
best interest of the Fund and its stockholders. The Directors, including the Independent Directors, voted to approve the New Management
Agreement and to recommend that the stockholders approve the New Management Agreement.</P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Required Vote </B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-weight: normal; background-color: white">To
become effective with respect to the Fund, the New Management Agreement must be approved by a &ldquo;1940 Act Majority Vote&rdquo;
of the outstanding voting securities of the Fund. A &ldquo;1940 Act Majority Vote&rdquo; of the outstanding voting securities of
a Fund means the affirmative vote of the lesser of (a) 67% or more of the voting securities of the Fund that are present at the
Meeting or represented by proxy if holders of shares representing more than 50% of the outstanding voting securities of the Fund
are present or represented by proxy or (b) more than 50% of the outstanding voting securities of the Fund.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: bold 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase">The
Board recommends that you vote &ldquo;FOR&rdquo; thE proposal to APPROVE THE NEW MANAGEMENT AGREEMENT WITH CORNERSTONE ADVISORS
ASSET MANAGEMENT LLC.</FONT></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>AUDIT COMMITTEE REPORT</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2019, the Audit
Committee met with the Fund&rsquo;s Administrator, Ultimus Fund Solutions, LLC, and the Fund&rsquo;s independent registered
public accounting firm, Tait, Weller &amp; Baker LLP, to discuss and review the Fund&rsquo;s audited financial statements for
the calendar year ended December 31, 2018. The Fund&rsquo;s independent registered public accounting firm represented to the
Audit Committee that the Fund&rsquo;s financial statements were prepared in accordance with U.S. Generally Accepted
Accounting Principles, and the Audit Committee has reviewed and discussed the financial statements with the Fund&rsquo;s
Administrator and its independent registered public accounting firm. The Audit Committee also discussed with the independent
registered public accounting firm matters required to be discussed by Statement on Auditing Standards No. 61.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Fund&rsquo;s independent registered
public accounting firm also provided to the Audit Committee the written disclosures required by Independence Standards Board Standard
No. 1 (Independence Discussions with Audit Committees), and the Audit Committee discussed with the independent registered public
accounting firm their independence, in light of the services they were providing.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Based upon the Audit Committee&rsquo;s
discussion with the Fund&rsquo;s Administrator and the independent registered public accounting firm and the Audit Committee&rsquo;s
review of the representations and report of the independent registered public accounting firm to the Audit Committee, the Audit
Committee recommended that the Board of Directors include the audited financial statements in the Fund&rsquo;s Annual Report for
the calendar year ended December 31, 2018 filed with the Securities and Exchange Commission.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This Audit Committee report shall not be
deemed incorporated by reference in any document previously or subsequently filed with the SEC that incorporates by reference all
or any portion of this proxy statement except to the extent that the Fund specifically requests that the report be specifically
incorporated by reference.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>




<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Audit Committee of the Board of Directors
has selected Tait, Weller &amp; Baker LLP to be employed as the Fund&rsquo;s independent registered public accounting firm to make
the annual audit and to report on, as may be required, the financial statements which may be filed by the Fund with the SEC during
the ensuing year.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 35%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Respectfully submitted,</FONT></TD>
    <TD STYLE="width: 15%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Glenn W. Wilcox, Sr., Chairman</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Robert E. Dean</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Scott B. Rogers</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Edwin Meese III</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Matthew W. Morris</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Andrew A. Strauss</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>

<!-- Field: Page; Sequence: 22 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 0pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>RELATIONSHIP WITH INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Fund&rsquo;s independent registered
public accounting firm for the calendar year ended December 31, 2018, was the firm of Tait, Weller &amp; Baker LLP. The Audit Committee
has selected Tait, Weller &amp; Baker LLP to be the Fund&rsquo;s registered public accounting firm for the calendar year ending
December 31, 2019.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A representative of Tait, Weller &amp;
Baker LLP is not expected to be present at the Annual Meeting of Stockholders or to make a statement, but may be available by telephone
to respond to appropriate questions from Stockholders.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>PRINCIPAL ACCOUNTANT FEES AND SERVICES</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Aggregate fees for professional services
rendered for the Fund by Tait, Weller &amp; Baker LLP for the years ended December 31, 2018 and 2017 were:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Service</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: Gainsboro">
    <TD STYLE="width: 70%; text-align: left">Audit Fees</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">28,200</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">27,400</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Audit-Related Fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: Gainsboro">
    <TD STYLE="text-align: left">Tax Fees (1)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,900</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,750</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">All Other Fees (2)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,600</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,600</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: Gainsboro">
    <TD STYLE="padding-bottom: 2pt">Total</TD><TD STYLE="padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">35,700</TD><TD STYLE="padding-bottom: 2pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2pt double; text-align: right">34,750</TD><TD STYLE="padding-bottom: 2pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 20pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1)</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Tax
services in connection with the Fund&rsquo;s excise tax calculations and review of the Fund&rsquo;s applicable tax returns.</FONT></TD>
</TR></TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 20pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(2)</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">All
Other Fees represents charges for review of the Fund&rsquo;s rights offering documents.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All of the services performed by the Fund&rsquo;s
independent registered public accounting firm, including audit-related and non-audit related services, were pre-approved by the
Audit Committee, as required under the Audit Committee Charter. Audit Fees for the years ended December 31, 2018 and 2017 were
for professional services rendered for the audits of the financial statements of the Fund, reviews, and issuances of consents,
and assistance with review of documents filed with the SEC. Tax Fees for the years ended December 31, 2018 and 2017 were for services
performed in connection with income and excise tax services other than those directly related to the audit of the income tax accrual.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Audit Committee has considered and
determined that the services provided by Tait, Weller &amp; Baker LLP are compatible with maintaining Tait, Weller &amp; Baker
LLP&rsquo;s independence. The aggregate fees included in Audit Fees are fees billed for the calendar year for the audit of the
Fund&rsquo;s annual financial statements. Of the time expended by the Fund&rsquo;s independent registered public accounting firm
to audit the Fund&rsquo;s financial statements for the calendar year ended December 31, 2018, less than 50% of such time involved
work performed by persons other than the independent registered public accounting firm&rsquo;s full time, permanent employees.
Tait, Weller &amp; Baker LLP did not perform any services on behalf of the Investment Adviser</P>

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<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INFORMATION PERTAINING TO THE FUND&rsquo;S<BR>
INVESTMENT ADVISER AND ADMINISTRATOR</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>THE INVESTMENT ADVISER</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Cornerstone Advisors, Inc. has acted as
the Fund&rsquo;s Investment Adviser (the &ldquo;Investment Adviser&rdquo;) since 2001, and has its principal office at 1075 Hendersonville
Road, Suite 250, Asheville, NC 28803. Cornerstone Advisors, Inc. was organized in February 2001, to provide investment management
services to closed-end investment companies and is registered with the SEC under the Investment Advisers Act of 1940, as amended.
Cornerstone Advisors, Inc. is the investment adviser to one other closed-end fund, Cornerstone Total Return Fund, Inc. Messrs.
Bradshaw and Bentz are the only stockholders of the Investment Adviser.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Mr. Bradshaw is President and Chairman
of the Board of Directors of the Fund. Mr. Bentz is Assistant Treasurer of the Fund.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The continuation of the Current Management
Agreement was last approved by the Board of Directors on February 8, 2019.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>THE ADMINISTRATOR</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Ultimus Fund Solutions, LLC, 225 Pictoria
Drive, Suite 450, Cincinnati, OH 45246, currently acts as the Administrator of the Fund.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING
COMPLIANCE</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Section 16(a) of the Securities Exchange
Act of 1934 (the &ldquo;Exchange Act&rdquo;) and Section 30(h) of the Investment Company Act in combination require the Fund&rsquo;s
directors and officers, persons who own more than ten (10%) of the Fund&rsquo;s Common Stock, and the Fund&rsquo;s Investment Adviser
and its directors and officers, to file reports of ownership and changes in ownership with the SEC. The Fund believes that the
Fund&rsquo;s directors and officers, the Fund&rsquo;s Investment Adviser and its directors and officers have complied with all
applicable filing requirements during the year ended December 31, 2018.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>INFORMATION PERTAINING TO CERTAIN STOCKHOLDERS</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth the beneficial
ownership of shares of the Fund by each person known to the Fund to be deemed the beneficial owner of more than five (5%) percent
of the outstanding shares of the Fund at the close of business on December 31, 2018:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="2" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 33%; padding-top: 4.5pt; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0">Name and Address
of<BR>
Beneficial Owner</P></TD>
    <TD STYLE="width: 34%; padding-top: 4.5pt; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Shares
of Common Stock</P>
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Beneficially Owned</P></TD>
    <TD STYLE="width: 33%; padding-top: 4.5pt; border-bottom: Black 1pt solid">
        <P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Percentage
of<BR>
Shares Outstanding</P></TD></TR>
<TR STYLE="vertical-align: top; background-color: Gainsboro">
    <TD STYLE="padding-bottom: 0.05in; text-indent: 0in"><P STYLE="margin-top: 0; margin-bottom: 0">Sit Investment Associates, Inc.*</P>
                                                         <P STYLE="margin: 0; padding: 0">3300 IDS Center</P>
                                                         <P STYLE="margin: 0; padding: 0">80 South Eighth Street</P>
                                                         <P STYLE="margin: 0; padding: 0">Minneapolis, MN 55402</P></TD>
    <TD STYLE="padding-bottom: 0.05in; text-align: center">9,384,662</TD>
    <TD STYLE="padding-bottom: 0.05in; text-align: center">12.9%</TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0pt"></TD><TD STYLE="width: 20pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">*</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Pursuant
to a 13G filing dated February 5, 2019 for the quarter ended December 31, 2018.</FONT></TD>
</TR></TABLE>
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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additionally, on February 19, 2019,
Cede &amp; Co., a nominee for participants in the Depository Trust Company, held of record  72,668,410 shares of the Fund,
equal to approximately 99.8% of the outstanding shares of the Fund. All the directors and executive officers of the Fund,
as of the date of this proxy, owned less than 1% of the outstanding shares of the Fund.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADDITIONAL INFORMATION</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This Proxy Statement does not contain all
of the information set forth in the registration statements and the exhibits relating thereto which the Fund has filed with the
SEC, under the Exchange Act and the Investment Company Act of 1940, as amended, to which reference is hereby made.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Fund is subject to the informational
requirements of the Exchange Act and in accordance therewith, files reports and other information with the SEC. Reports, proxy
statements, registration statements and other information filed by the Fund can be inspected and copied at the public reference
facilities of the SEC in Washington, DC. Copies of such materials also can be obtained by mail from the Public Reference Branch,
Office of Consumer Affairs and Information Services, SEC, 100 F Street, NE, Washington, DC 20594, at prescribed rates.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>OTHER BUSINESS</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Board of Directors of the Fund does
not know of any other matter which may come before the Meeting, but should any other matter requiring a vote of Stockholders arise,
including any questions as to the adjournment of the Meeting, it is the intention of the persons named in the proxy to vote the
proxies in accordance with their judgment on that matter in the interest of the Fund.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROPOSALS TO BE SUBMITTED BY STOCKHOLDERS</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All proposals by Stockholders of the Fund
which are intended to be presented at the Fund&rsquo;s next Annual Meeting of Stockholders, to be held in the year 2020, must be
received by the Fund addressed to Cornerstone Strategic Value Fund, Inc., c/o Ultimus Fund Solutions, LLC, 225 Pictoria Drive,
Suite 450, Cincinnati, OH 45246, in advance of that meeting as set forth in this document.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 40%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">CORNERSTONE STRATEGIC VALUE FUND, INC.</FONT></TD>
    <TD STYLE="width: 10%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Hoyt M. Peters, Secretary</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Dated: March 1, 2019</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">CORNERSTONE STRATEGIC VALUE FUND, INC.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">PROXY CARD FOR THE ANNUAL MEETING OF STOCKHOLDERS</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">TO BE HELD ON APRIL 16, 2019</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">THIS PROXY IS SOLICITED ON BEHALF OF THE
BOARD OF DIRECTORS</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">The undersigned stockholder of Cornerstone Strategic Value Fund,
Inc. (the &ldquo;Fund&rdquo;) hereby constitutes and appoints Messrs. Ralph W. Bradshaw, Andrew A. Strauss, Scott B. Rogers, and
Glenn W. Wilcox, Sr., or any of them, the action of a majority of them voting to be controlling, as proxy of the undersigned, with
full power of substitution, to vote all shares of common stock of the Fund standing in his or her name on the books of the Fund
at the Annual Meeting of Stockholders of the Fund to be held at the First Floor Conference Room, 1075 Hendersonville Rd., Asheville,
NC 28803, on April 16, 2019 at 11:30 a.m., Eastern Time, or at any adjournment or postponement thereof, with all the powers which
the undersigned would possess if personally present, as designated on the reverse hereof.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">The undersigned hereby revokes any proxy previously given and
instructs the said proxies to vote in accordance with the instructions with respect to the election of the directors and the consideration
and vote of such other matters as may properly come before the Annual Meeting of Stockholders or any adjournment or postponement
thereof.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">This proxy, when properly executed, will be voted in the manner
directed herein by the stockholder. If no such direction is made, the said proxies will vote FOR Proposal 1 and Proposal 2 and
in their discretion with respect to such other matters as may properly come before the Annual Meeting of Stockholders, in the interest
of the Fund.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">(Continued and to be dated and signed on reverse side)</P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">ANNUAL MEETING OF STOCKHOLDERS OF</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">CORNERSTONE STRATEGIC VALUE FUND, INC.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">April 16, 2019</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">NOTICE OF INTERNET AVAILABILITY OF PROXY MATERIAL:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">The Notice of Meeting, proxy statement and proxy card are available
at http://www.cornerstonestrategicvaluefund.com/Data/Sites/21/media/docs/CLM_proxy_final.pdf</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">PLEASE SIGN, DATE AND MAIL YOUR PROXY CARD IN THE ENVELOPE PROVIDED
AS SOON AS POSSIBLE.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">THE BOARD OF DIRECTORS RECOMMENDS A VOTE &ldquo;FOR&rdquo; PROPOSAL
1, &ldquo;FOR&rdquo; PROPOSAL 2, AND &ldquo;FOR&rsquo; PROPOSAL 3.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE.
PLEASE MARK YOUR VOTE IN BLUE OR BLACK INK AS SHOWN HERE [X]</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; margin-left: 0in; text-indent: 0in">1.
To approve the election of two (2) Directors:</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 11pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">NOMINEE:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 20%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Andrew A. Strauss</FONT></TD>
    <TD STYLE="width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif">For</FONT></TD>
    <TD STYLE="width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif">/ /</FONT></TD>
    <TD STYLE="width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Withhold</FONT></TD>
    <TD STYLE="width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif">/ /</FONT></TD>
    <TD STYLE="width: 60%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Glenn W. Wilcox, Sr.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">For</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">/ /</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Withhold</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">/ /</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; margin-left: 0in; text-indent: 0in">2.
To approve a new investment management agreement with Cornerstone Advisors Asset Management LLC:</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 11pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33%; padding-left: 35.5pt; text-indent: -35.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">For</FONT></TD>
    <TD STYLE="width: 34%; padding-left: 35.5pt; text-indent: -35.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Against</FONT></TD>
    <TD STYLE="width: 33%; padding-left: 35.5pt; text-indent: -35.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Abstain</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 35.5pt; text-indent: -35.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">/ /</FONT></TD>
    <TD STYLE="padding-left: 35.5pt; text-indent: -35.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">/ /</FONT></TD>
    <TD STYLE="padding-left: 35.5pt; text-indent: -35.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">/ /</FONT></TD></TR>
</TABLE>
<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; margin-left: 0in; text-indent: 0in">3.
In their discretion, the proxies are authorized to consider and vote upon such other matters as may properly come before the
Meeting or any adjournment thereof.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33%; padding-left: 35.5pt; text-indent: -35.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">For</FONT></TD>
    <TD STYLE="width: 34%; padding-left: 35.5pt; text-indent: -35.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Against</FONT></TD>
    <TD STYLE="width: 33%; padding-left: 35.5pt; text-indent: -35.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Abstain</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 35.5pt; text-indent: -35.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">/ /</FONT></TD>
    <TD STYLE="padding-left: 35.5pt; text-indent: -35.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">/ /</FONT></TD>
    <TD STYLE="padding-left: 35.5pt; text-indent: -35.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">/ /</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">Your proxy is important to assure a quorum at the Annual Meeting
of Stockholders, whether or not you plan to attend the Meeting in person. You may revoke this proxy at any time, and the giving
of it will not affect your right to attend the Annual Meeting of Stockholders and vote in person.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">PLEASE MARK, SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY USING
THE ENCLOSED ENVELOPE.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">To change the address on your account, please check the box
at right and indicate your new address in the address space above. [ ] Please note that changes to the registered name(s) on the
account may not be submitted by this method.</P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 25%"><FONT STYLE="font-family: Times New Roman, Times, Serif">SIGNATURE OF STOCKHOLDER</FONT></TD>
    <TD STYLE="width: 30%; border-bottom: black 1pt solid; text-indent: 1.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 15%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">DATE</FONT></TD>
    <TD STYLE="width: 30%; border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">SIGNATURE OF STOCKHOLDER</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">DATE</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">NOTE: Please sign exactly as your name or names appear on this
Proxy. When shares are held jointly, each holder should sign. When signing as executor, administrator, attorney, trustee or guardian,
please give full title as such. If the signer is a corporation, please sign full corporate name by duly authorized officer, giving
full title as such. If signer is a partnership, please sign in partnership name by authorized person.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="margin: 0"></P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">Exhibit A</P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">FORM OF</P>

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">INVESTMENT MANAGEMENT AGREEMENT</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">THIS INVESTMENT MANAGEMENT AGREEMENT
dated and effective as of [_________ __, 2019] between CORNERSTONE STRATEGIC VALUE FUND, INC., a Maryland corporation (herein referred
to as the &ldquo;Fund&rdquo;), and CORNERSTONE ADVISORS ASSET MANAGEMENT LLC, a limited liability company duly organized under
the laws of North Carolina (herein referred to as the &ldquo;Investment Manager&rdquo;).</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">1. APPOINTMENT OF INVESTMENT MANAGER.
The Investment Manager hereby undertakes and agrees, upon the terms and conditions herein set forth, to provide overall investment
management services for the Fund, and in connection therewith to (i) supervise the Fund&rsquo;s investment program, including advising
and consulting with the Fund&rsquo;s Board of Directors regarding the Fund&rsquo;s overall investment strategy; (ii) make, in consultation
with the Fund&rsquo;s Board of Directors, investment strategy decisions for the Fund; (iii) manage the investing and reinvesting
of the Fund&rsquo;s assets; (iv) place purchase and sale orders on behalf of the Fund; (v) advise the Fund with respect to all
matters relating to the Fund&rsquo;s use of leveraging techniques; (vi) provide or procure the provision of research and statistical
data to the Fund in relation to investing and other matters within the scope of the investment objective and limitations of the
Fund; (vii) monitor the performance of the Fund&rsquo;s outside service providers, including the Fund&rsquo;s administrator, transfer
agent and custodian; (viii) be responsible for compliance by the Fund with U.S. federal, state and other applicable laws and regulations;
and (ix) pay the salaries, fees and expenses of such of the Fund&rsquo;s directors, officers or employees who are directors, officers
or employees of the Investment Manager or any of its affiliates, except that the Fund will bear travel expenses or an appropriate
portion thereof of directors and officers of the Fund who are directors, officers or employees of the Investment Manager, to the
extent that such expenses relate to attendance at meetings of the Board of Directors or any committees thereof. The Investment
Manager may delegate any of the foregoing responsibilities to a third party with the consent of the Board of Directors.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">2. EXPENSES. In connection herewith,
the Investment Manager agrees to maintain a staff within its organization to furnish the above services to the Fund. The Investment
Manager shall bear all expenses arising out of its duties hereunder.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 1in">Except as provided in Section 1 hereof,
the Fund shall be responsible for all of the Fund&rsquo;s expenses and liabilities, including expenses for legal, accounting and
auditing services; taxes and governmental fees; dues and expenses incurred in connection with membership in investment company
organizations; fees and expenses incurred in connection with listing the Fund&rsquo;s shares on any stock exchange; costs of printing
and distributing shareholder reports, proxy materials, prospectuses, stock certificates and distribution of dividends; charges
of the Fund&rsquo;s custodians and sub-custodians, administrators and sub-administrators, registrars, transfer agents, dividend
disbursing agents and dividend reinvestment plan agents; payment for portfolio pricing services to a pricing agent, if any; registration
and filing fees of the Securities and Exchange Commission; expenses of registering or qualifying securities of the Fund for sale
in the various states; freight and other charges in connection with the shipment of the Fund&rsquo;s portfolio securities; fees
and expenses of non-interested directors or non-interested members of any advisory or investment board, committee or panel of the
Fund; fees and expenses of any officers and interested directors of the Fund who are not affiliated with the Investment Manager,
the Administrator or their respective affiliates; travel expenses or an appropriate portion thereof of directors and officers of
the Fund, or members of any advisory or investment board, committee or panel of the Fund, to the extent that such expenses relate
to attendance at meetings of the Board of Directors or any committee thereof, or of any such advisory or investment board, committee
or panel; salaries of shareholder relations personnel; costs of shareholders meetings; insurance; interest; brokerage costs; and
litigation and other extraordinary or non-recurring expenses.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">&nbsp;</P>

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    <!-- Field: /Page --><P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">3. TRANSACTIONS WITH AFFILIATES. The
Investment Manager is authorized on behalf of the Fund, from time to time when deemed to be in the best interests of the Fund and
to the extent permitted by applicable law, to purchase and/or sell securities in which the Investment Manager or any of its affiliates
underwrites, deals in and/or makes a market and/or may perform or seek to perform investment banking services for issuers of such
securities. The Investment Manager is further authorized, to the extent permitted by applicable law, to select brokers (including
any brokers affiliated with the Investment Manager) for the execution of trades for the Fund.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">4. <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">BEST
EXECUTION; RESEARCH SERVICES. The Investment Manager is authorized, for the purchase and sale of the Fund&rsquo;s portfolio services,
to employ such dealers and brokers as may, in the judgment of the Investment Manager, implement the policy of the Fund to obtain
the best results taking into account such factors as price, including dealer spread, the size, type and difficulty of the transaction
involved, the firm&rsquo;s general execution and operational facilities and the firm&rsquo;s risk in positioning the securities
involved. Consistent with this policy, the Investment Manager is authorized to direct the execution of the Fund&rsquo;s portfolio
transactions to dealers and brokers furnishing statistical information or research deemed by the Investment Manager to be useful
or valuable to the performance of its investment advisory functions for the Fund. It is understood that in these circumstances,
as contemplated by Section 28(e) of the Securities Exchange Act of 1934, the commissions paid may be higher than those that the
Fund might otherwise have paid to another broker if those services had not been provided. Information so received will be in addition
to and not in lieu of the services required to be performed by the Investment Manager. It is understood that the expenses of the
Investment Manager will not necessarily be reduced as a result of the receipt of such information or research. Research services
furnished to the Investment Manager by brokers who effect securities transactions for the Fund may be used by the Investment Manager
in servicing other investment companies and accounts that it manages. Similarly, research services furnished to the Investment
Manager by brokers who effect securities transactions for other investment companies and accounts that the Investment Manager manages
may be used by the Investment Manager in servicing the Fund. It is understood that not all of these research services are used
by the Investment Manager in managing any particular account, including the Fund.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">5. REMUNERATION. In consideration of
the services to be rendered by the Investment Manager under this Agreement, the Fund shall pay the Investment Manager a monthly
fee in United States dollars for the previous month at an annual rate of one (1.00%) percent of the Fund&rsquo;s average weekly
net assets. If the fee payable to the Investment Manager pursuant to this paragraph 5 begins to accrue before the end of any month
or if this Agreement terminates before the end of any month, the fee for the period from such date to the end of such month or
from the beginning of such month to the date of termination, as the case may be, shall be prorated according to the proportion
which such period bears to the full month in which such effectiveness or termination occurs. For purposes of calculating each such
monthly fee, the value of the Fund&rsquo;s net assets shall be computed at the time and in the manner specified in the Registration
Statement.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">&nbsp;</P>

<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-bottom: 6pt"><P STYLE="margin: 0pt; font: 9pt Times New Roman, Times, Serif">&nbsp;</P></DIV>
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    <!-- Field: /Page --><P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">6. REPRESENTATIONS AND WARRANTIES. The
Investment Manager represents and warrants that it is duly registered and authorized as an investment adviser under the Investment
Advisers Act of 1940, as amended, and the Investment Manager agrees to maintain effective all requisite registrations, authorizations
and licenses, as the case may be, until the termination of this Agreement.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">7. SERVICES NOT DEEMED EXCLUSIVE. The
services provided hereunder by the Investment Manager are not to be deemed exclusive and the Investment Manager and any of its
affiliates or related persons are free to render similar services to other and to use the research developed in connection with
this Agreement for other clients or affiliates. Nothing herein shall be construed as constituting the Investment Manager an agent
of the Fund.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">8. LIMIT OF LIABILITY. The Investment
Manager shall exercise its best judgment in rendering the services in accordance with the terms of this Agreement. The Investment
Manager shall not be liable for any error of judgment or mistake of law or for any act or omission or any loss suffered by the
Fund in connection with the matters to which this Agreement relates, provided that nothing herein shall be deemed to protect or
purport to protect the Investment Manager against any liability to the Fund or its shareholders to which the Investment Manager
would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence on its part in the performance of its
duties or from reckless disregard by it of its obligations and duties under this Agreement (&ldquo;disabling conduct&rdquo;). The
Fund will indemnify the Investment Manager against, and hold it harmless from, any and all losses, claims, damages, liabilities
or expenses (including reasonable counsel fees and expenses), including any amounts paid in satisfaction of judgments, in compromise
or as fines or penalties, not resulting from disabling conduct by the Investment Manager. Indemnification shall be made only following:
(i) a final decision on the merits by a court or other body before whom the proceeding was brought that the Investment Manager
was not liable by reason of disabling conduct, or (ii) in the absence of such a decision, a reasonable determination, based upon
a review of the facts, that the Investment Manager was not liable by reason of disabling conduct by (a) the vote of a majority
of a quorum of directors of the Fund who are neither &ldquo;interested persons&rdquo; of the Fund nor parties to the proceeding
(&ldquo;disinterested non-party directors&rdquo;), or (b) an independent legal counsel in a written opinion. The Investment Manager
shall be entitled to advances from the Fund for payment of the reasonable expenses (including reasonable counsel fees and expenses)
incurred by it in connection with the matter as to which it is seeking indemnification in the manner and to the fullest extent
permissible under law. Prior to any such advance, the Investment Manager shall provide to the Fund a written affirmation of its
good faith belief that the standard conduct necessary for indemnification by the Fund has been met and a written undertaking to
repay any such advance if it should ultimately be determined that the standard of conduct has not been met. In addition, at least
one of the following additional conditions shall be met: (a) the Investment Manager shall provide a security in form and amount
acceptable to the Fund for its undertaking; (b) the Fund is insured against losses arising by reason of the advance; or (c) a majority
of a quorum of disinterested non-party directors, or independent legal counsel, in a written opinion, shall have determined, based
on a review of facts readily available to the Fund at the time the advance is proposed to be made, that there is reason to believe
that the Investment Manager will ultimately be found to be entitled to indemnification.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">&nbsp;</P>

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    <DIV STYLE="margin-bottom: 6pt"><P STYLE="margin: 0pt; font: 9pt Times New Roman, Times, Serif">&nbsp;</P></DIV>
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    <!-- Field: /Page --><P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">9. DURATION AND TERMINATION. This Agreement
shall have an initial term beginning [_________ __, 2019] and ending [_________ __, 2021], and then shall continue in effect thereafter
for successive annual periods, but only so long as such continuance is specifically approved at least annually by the affirmative
vote of (i) a majority of the members of the Fund&rsquo;s Board of Directors who are not parties to this Agreement or &ldquo;interested
persons&rdquo; (as defined in the Investment Company Act of 1940 (the &ldquo;1940 Act&rdquo;)) of any such party, cast in person
at a meeting called for the purpose of voting on such approval, and (ii) the Fund&rsquo;s Board of Directors or the holders of
a majority of the outstanding voting securities (as defined in the 1940 Act) of the Fund.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 1in">Notwithstanding the above, this Agreement
(a) may nevertheless be terminated at any time, without penalty, by the Fund&rsquo;s Board of Directors, by vote of holders of
a majority of the outstanding voting securities (as defined in the 1940 Act) of the Fund or by the Investment Manager, upon sixty
(60) days&rsquo; written notice delivered to each party hereto, and (b) shall automatically be terminated in the event of its assignment
(as defined in the 1940 Act). Any such notice shall be deemed given when received by the addressee.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">10. GOVERNING LAW. This Agreement shall
be governed, construed and interpreted in accordance with the laws of the State of New York, provided, however, that nothing herein
shall be construed as being inconsistent with the 1940 Act.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">11. <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">NOTICES.
Any notice hereunder shall be in writing and shall be delivered in person or by telex or facsimile (followed by delivery in person)
to the parties at the addresses set forth below:</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">IF TO THE FUND:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">--------------</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">CORNERSTONE STRATEGIC VALUE FUND, INC.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">[c/o Cornerstone Advisors Asset Management LLC]</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">[1075 Hendersonville Road]</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">[Suite 250]</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">[Asheville, NC 28803]</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Attention: [Mr. Ralph W. Bradshaw]</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Telephone No.: [(___) ___-____]</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">Fax No.: [(___) ___-____]</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">&nbsp;</P>

<!-- Field: Page; Sequence: 4 -->
    <DIV STYLE="margin-bottom: 6pt"><P STYLE="margin: 0pt; font: 9pt Times New Roman, Times, Serif">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page --><P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">IF TO THE INVESTMENT MANAGER:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">CORNERSTONE ADVISORS ASSET MANAGEMENT LLC</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">[1075 Hendersonville Road]</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">[Suite 250]</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">[Asheville, NC 28803]</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Attention: [____________]</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Telephone No.: [(___) ___-____]</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">Fax No.: [(___) ___-____]</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0in">or to such other address as to which the
recipient shall have informed the other party in writing.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 1in">Unless specifically provided elsewhere,
notice given as provided above shall be deemed to have been given, if by personal delivery, on the day of such delivery, and, if
by facsimile and mail, on the date on which such facsimile or mail is sent.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">12. <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt">COUNTERPARTS.
This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which together
shall constitute one and the same instrument.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in">IN WITNESS WHEREOF, the parties hereto
caused their duly authorized signatories to execute this Agreement as of the day and year first written above.</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="4">CORNERSTONE STRATEGIC VALUE FUND, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="4">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 5%">By:</TD>
    <TD STYLE="width: 5%; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 35%; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Name:</TD>
    <TD>Ralph W. Bradshaw</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Title:</TD>
    <TD>Chairman of the Board</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">CORNERSTONE ADVISORS ASSET MANAGEMENT LLC</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 5%">By:</TD>
    <TD STYLE="width: 5%; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 35%; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Name:</TD>
    <TD>[______________]</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>Title:</TD>
    <TD>[______________]</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>



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