Davis Capital Advisors LLC

Item 5: Fees and Compensation

Description
      DCA bases its management fees on a percentage of assets under management.
      Investment management services are offered through two types of accounts:

      (1) a non-wrap account where clients are charged separate advisory fees, transaction
      charges, and administrative charges. In addition, for certain accounts that qualify,
      performance fees may be charged; and

      (2) a "wrap fee account" in the Davis Capital Advisors Wrap Fee Program ("DCA WFP"
      or “Program”) which bundles advisory, administrative, and transaction charges into one
      asset-based fee.

      Non-wrap Accounts: There is no minimum of assets under management or minimum
      annual fee required for clients participating in this type of fee arrangement. The annual
      fee for portfolio management services in non-wrap fee accounts will be charged as a
      percentage of assets under management, according to the following schedule:

      Assets Under Management               Annual Fee (%)

      0 to $249,999                         1.75%
      $250,000 to $499,999                  1.55%
      $500,000 to $999,000                  1.35%
      $1,000,000 to $2,999,999              1.15%
      $3,000,000 to $4,999,999              1.05%
      $5,000,000 or more                    0.95%

      There is no minimum of assets under management required for this service.
      DCA may group certain related client accounts for the purposes of determining the
      annualized fee.

      Fees Offset By Commissions: If a client executes recommended securities
      transactions through associated persons of DCA in their separate capacities as
      registered representatives of Davis Securities (“DS”), a FINRA broker dealer
      member firm, these individuals will earn commissions which are separate and distinct
      from fees charged for advisory services. In some instances, depending on the size of the
      transaction, advisory fees may be discounted, at DCA's discretion, for commissions
      earned. Commissions will not be credited toward future advisory fees.

      For clients who direct brokerage to DCA's related broker dealer, DS,
      (see below at Item 12), commissions are typically charged according to
      the following schedule:

      For accounts with assets under management GREATER than $500,000:
      Equities (including ETFs) - $0.03 per share or $30.00 minimum charge.

Bonds - Commission varies on size and maturity of bond transactions.
Options - $30.00 minimum or $3.00 per/contract whichever is greater.
Mutual Funds - $25.00 service fee for all mutual funds transactions.

For accounts with assets under management LESS than $500,000:
Equities (including ETFs) - $0.035 per share or $35.00 minimum charge.
Bonds - Commission varies on size and maturity of bond transactions.
Options - $35.00 minimum or $3.50 per/contract whichever is greater.
Mutual Funds - $25.00 service fee for all mutual funds transactions.

There is also a postage and handling fee of $3.00 per transaction and a postage
and handling fee of $25.00 for mutual fund exchanges within the same mutual
fund family.

Wrap Fee Accounts: As previously disclosed, clients participating in the Davis
Capital Advisors Wrap Fee Program ("DCA WFP") pay an all-inclusive wrap fee
which includes charges for advisory services, custody, clearing, account
reporting, and transaction execution. Clients participating in these programs also
agree to direct brokerage in their DCA WFP account(s) through DS, a FINRA member
broker dealer under common ownership with DCA. Therefore, in evaluating such an
arrangement, a client should recognize that brokerage commissions for the execution of
transactions in the client's account are not negotiated by DCA, and best execution may
not be achieved.

In addition, a disparity in commission charges may exist between the
commissions charged to the client and those charged to other DCA clients.
The client should also consider that, depending upon the level of the wrap fee
charged, the amount of portfolio activity in the client's account, the value of custodial and
other services which are provided under the arrangement, and other factors, the wrap fee
may or may not exceed the aggregate cost of such services if they were to be provided
separately and if DCA were free to negotiate commissions and seek best price and
execution of transactions for the client's account.

The annual fee for portfolio management services in wrap fee accounts will be
charged as a percentage of assets under management, according to the following
schedule:

Equity Wrap Accounts:

Assets Under Management               Annual Fee (%)

$0 to $499,999                        1.50%
$500,000 to $4,999,999                1.25%
$5,000,000 or more                    1.00%

       Fixed Income Wrap Accounts:

       Assets Under Management Annual Fee (%)

       $0 to $499,999                          1.50%
       $500,000 to 4,999,999                   1.25%
       $5,000,000 to $9,999,999                1.00%
       $10,000,000 or more                     .75%

       There is no minimum of assets under management or minimum annual fee
       required for clients participating in the DCA WFP. DCA may group certain
       related client accounts for the purposes of determining the annualized fee.
       Clients and prospective clients of the DCA WFP will be provided a separate
       disclosure document – ADV Part 2, Appendix 1. These clients should review this
       document for additional information about the services provided and the fees to be
       charged in these accounts.

       Fixed Fee Accounts: For an Annual Fixed Fee of up to $500, which is negotiable, DCA
       offers consultation and independent fiduciary services for Plan participants in employer-
       sponsored, tax-deferred retirement plans, including, but not limited to, variable annuity
...

Item 7: Types of Clients

Description
      DCA generally offers portfolio management services, where appropriate, to individuals,
      pension and profit sharing plans, pooled investment vehicles, trusts, estates or charitable
      organizations and corporations or other business entities. Client relationships vary in
      scope and length of service.

       DCA does not impose a minimum dollar value of assets or other condition for opening or
       maintaining an account.