ARX Management LLC

Fees and Compensation:

Standard Fee Schedule

Qualified Settlement Fund / Enhanced Cash / Limited Duration:

 First $10 million                             50 basis points
 Next $40 million                              37.5 basis points
 Next $50 million                              25 basis points
 Next $150 million                             20 basis points
 Thereafter                                    15 basis points

The fees described above are annualized and calculated based on average assets under
management during the period. Fees are billed directly to the QSF monthly, in arrears.

Client funds may be subject to additional expenses, such as custodial fees, accounting fees,
and costs related to the execution of trades. ARX will execute trades under a strict best
execution policy, and will use all reasonable means at its disposal to minimize the cost of
these services

Fees may be negotiated based on the entire scope of services provided by ARX to the client.
For example, fixed fund administration fees may be assessed if the scope of services
expands beyond managing Qualified Settlement Funds.

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

ARX	Management,	LLC	ADV	Part	2	                                                            4

Types of Clients:

ARX offers fund management services to business entities, corporations, and trusts. Our
standard minimum account size is $1 million. Principals of ARX and its affiliates are not
subject to a minimum account size requirement.

Methods of Analysis, Investment Strategies and Risk of Loss:

Investment Philosophy:

Our investment philosophy is based on our belief that the markets are not efficient, and that
this dynamic creates opportunities for active managers to add alpha relative to the broad
market. We believe benchmarks are simply broad proxies for the market, and do not
necessarily represent the best opportunities for income investors. ARX constructs
customized portfolios to reflect each client’s desired risk and return characteristics and
does not structure portfolios with benchmark tracking error as a consideration. We view
investment opportunities through a comprehensive lens and will look across markets and
capital structures to identify the best investment opportunities.

Investment Process:

Our investment process begins with our assessment and outlook for the global economy
over the next 2-5 years. The inputs of this assessment include economic data, credit
conditions, fiscal and monetary policy, the geopolitical environment, and business
confidence measures.

The macro outlook informs our duration, term structure, and sector positioning. We seek
to identify asset classes and sectors we believe offer the best relative value within the
opportunity set permitted by each mandate. Once these are identified, we embark on a
bottom-up research process at the security level. We focus on fundamental health and
credit characteristics of the issuer, security specific structural features, and valuation
relative to other opportunities.

Risk management is inherent in every step of our process. Our portfolios are constructed
to reflect our best investment ideas in a mandate-appropriate manner, with each client’s
risk tolerance and liquidity requirements as our primary considerations. We utilize
proprietary and state-of-the-art third-party systems to construct and monitor portfolios,
manage risk, and execute trades. Portfolio and security compliance are monitored daily,
and formal investment targets are reviewed monthly.

We utilize the process outlined above for our most conservative enhanced cash portfolios,
which must maintain minimal margin for loss, as well as our strategic income offerings,
which possesses higher risk and return characteristics.

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Risk	of	Loss:

Investing	in	securities	is	inherently	risky.	An	investment	in	individual	securities	or	in
a	portfolio	of	securities	could	lose	money.	The	investments	selected	by	the	ARX	are
designed	for	sophisticated	investors	who	fully	understand	and	are	capable	of	bearing
the	risk	of	loss	of	their	entire	investment.	The	Advisor	cannot	give	any	guarantee	that
it	will	achieve	its	investment	objectives	or	that	any	client	will	receive	a	return	of	its
investment.	 Investments	 in	 fixed	 income	 securities	 are	 subject	 to	 credit,	 liquidity,
prepayment,	and	interest	rate	risks,	any	of	which	may	adversely	impact	the	price	of
the	 security	 and	 result	 in	 a	 loss.	 Portfolio	 investments	 may	 be	 affected	 by	 force
majeure	events	(i.e.,	events	beyond	the	control	of	the	party	claiming	that	the	event
has	 occurred,	 including,	 without	 limitation,	 acts	 of	 God,	 fire,	 flood,	 earthquakes,
outbreaks	 of	 an	 infectious	 disease,	 pandemic	 or	 any	 other	 serious	 public	 health
concern,	war,	terrorism,	labor	strikes,	major	plant	breakdowns,	pipeline	or	electricity
line	 ruptures,	 failure	 of	 technology,	 defective	 design	 and	 construction,	 accidents,
demographic	 changes,	 government	 macroeconomic	 policies,	 social	 instability,	 etc.)
which	may	therefore	adversely	affect	the	performance	of	client	accounts	and	their
investments.	Some	force	majeure	events	may	adversely	affect	the	ability	of	ARX	to
perform	its	obligations	until	it	is	able	to	remedy	the	force	majeure	event.

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