Emergent Financial Services LLC

Item 5: Fees and Compensation

   A. Fees and Fee Schedule

   All fees are subject to negotiation.

   The specific manner in which fees are charged by Emergent is negotiated in the
   client’s written agreement with Emergent.

The basic fee schedules is as follows:

Total Assets Under Management                   Annual Fee

Up to $9,999,999                                   1.0%
$10,000,000 and Over                               0.75%

Form ADV: Part 2A
Emergent Financial Services, LLC.

For institutions investing in fixed-income only, the fee schedule is as follows:

Total Assets Under Management                    Annual Fee

First $50,000,000                                   0.40%
Next $50,000,000                                    0.20%
Assets Over $100,000,000                            0.10%

    B. Unless otherwise requested in the contract, Emergent will bill its fees on a
       quarterly basis in arrears debited from client accounts as per written
       discretionary authority agreement in the Contract. Emergent sends a copy of our
       invoice to the custodian or trustee no earlier than the same time the custodian
       deposits that same copy into the client’s online custodial account access,
       namely, quarterly. Management fees shall be prorated for each capital
       contribution and withdrawal made during the applicable calendar quarter. A
       prorated fee will be charged for accounts initiated or terminated during a
       calendar quarter. Upon termination of any account, any earned, unpaid fees
       will be due and payable. Fees are based upon the fair market value of assets
       under management at the end of each quarter.

    C. Emergent’s fees are exclusive of brokerage commissions, transaction fees, and
       other related costs and expenses which a client may incur. Custodians, brokers,
       third party investment and other third parties may charge fees such as:

       −   Manager fees
       −   Custodial fees
       −   Deferred sales charges
       −   Odd-lot differentials

Form ADV: Part 2A
Emergent Financial Services, LLC.

        −   Transfer taxes
        −   Wire transfer and electronic fund fees
        −   Other fees and taxes on brokerage accounts and securities transactions.
        Mutual funds and exchange traded funds also charge internal management
        fees, which are disclosed in a fund’s prospectus. (An exchange-traded fund, or
        ETF, is an investment fund traded on stock exchanges, much like stocks.) These
        additional charges, fees and commissions are exclusive of and in addition to
        Emergent’s fee; Emergent does not receive any portion of these commissions,
        fees, and costs.

        Item 12 of this brochure further describes brokerage and transaction costs.

     D. Emergent elects to bill in arrears each calendar quarter. The client does not pay
        fees in advance.

     E. There is no supervised person who will receive compensation from the sale of
        securities or other investment products in connection with Emergent.

Item 7: Types of Clients

Types of clients for which Emergent provides services include individuals and institutions.
There is no minimum amount of assets required to open an account with Emergent.