Saxon Securities LLC

ITEM 5 - FEES AND COMPENSATION
Saxon Securities charges an advisory fee for investment management services, based
on assets under management. The advisory fees are payable on a management fee
basis where fees are collected from the client’s separately managed account periodically
in arrears.

Schedule of fees for MMDAs:

The advisory fee on amounts held in MMDAs is determined on an average monthly
basis across the various interest rate tiers of the daily deposit balances held in MMDAs.
The compensation and other economic benefits that Saxon Securities receives by
offering MMDAs, based on market conditions, interest agreed to be paid by Depository
Institutions, and other factors, currently may range from 0.00% to 0.50%, annualized.

Schedule of fees for CDs:

For maturity terms less than 2 years:

        Assets Under Management                  Annual Fee
          First $100 million                      0.150 %
          Above $100 million To $500 million      0.125 %
          Above $ 500 million                     0.100 %

For maturity terms greater than or equal to 2 years:

         Assets Under Management                  Annual Fee
           First $100 million                      0.250 %
           Above $100 million To $500 million      0.225 %
           Above $ 500 million                     0.200 %

Fees are based on incremental assets using tiered break-points.        Break-points are
applied to the aggregate of all accounts in the client relationship.

Some accounts may be under different fee schedules honoring prior agreements. Our
standard fee schedules may be negotiable at our discretion based on a number of
factors, which include but are not limited to “grandfathered” accounts, complexity of
accounts (e.g., custom reporting, etc.), and other special situations.

Clients will be responsible for paying all custodian fees associated with our advisory
services. Any brokerage fees, or other transaction costs payable in connection with the
execution of transactions shall be incurred by the client; see Item – 12 Brokerage
Practices for more information on brokerage practices.

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

ITEM 7 - TYPES OF CLIENTS
Saxon Securities provides managed account services and generally imposes a minimum
dollar commitment, but such minimum commitment is negotiated on a case-by-case
basis. Saxon Securities may lower such minimum at its discretion. There is no minimum
amount required for subsequent deposits.

Saxon Securities provides investment management services to: individuals, investment
managers, municipalities, investment companies and corporations or business entities,
and non-profit organizations.