Southern Capital Services Inc

Item 5: Fees and Compensation

A. Fee Schedule

Investment Supervisory Services Fees

          Total Assets Under Management                 Annual Fee

                  Up to $999,999                           1.00%

              $1,000,000 - $2,999,999                      0.80%

              $3,000,000 - $4,999,999                      0.70%

              $5,000,000 - $9,999,999                      0.60%

              $10,000,000 and Above                        0.50%

These fees are negotiable depending upon the needs of the client and complexity of the
situation, and the final fee schedule is attached as Exhibit II of the Investment Advisory
Contract. Fees are paid quarterly in advance, and clients may terminate their contracts
with thirty days written notice. Advisory fees are withdrawn directly from the client’s
accounts with client written authorization.

Refunds are given on a prorated basis, based on the number of days remaining in a quarter
at the point of termination. Fees that are collected in advance will be refunded based on
the prorated amount of work completed up to the day of termination within the quarter
terminated. The fee refunded will be the balance of the fees collected in advance minus
the daily rate* times the number of days in the quarter up to and including the day of
termination. (*The daily rate is calculated by dividing the quarterly AUM fee by the
number of days in the termination quarter). Clients may terminate their contracts without
penalty, for full refund, within 5 business days of signing the advisory contract.

In cases where Advisor fees are directly deducted, Advisor is required to a.) Obtain client
authorization, b.) Disclose that the custodian will send monthly statements to the client
wherein Advisor fees are itemized.

       B. Payment of Fees

       Payment of Investment Supervisory Fees

       Advisory fees are withdrawn directly from the client’s accounts with client written
       authorization. Fees are paid quarterly in advance.

       C. Clients Are Responsible For Third Party Fees

       Clients are responsible for the payment of all third-party fees (i.e. custodian fees,
       brokerage fees, mutual fund fees, transaction fees, etc.). Those fees are separate and
       distinct from the fees and expenses charged by SCS. Please see Item 12 of this brochure
       regarding broker/custodian.

       D. Prepayment of Fees

       SCS collects fees in advance. Fees that are collected in advance will be refunded based on
       the prorated amount of work completed at the point of termination and the total days
       during the billing period. Fees will be returned within sixty days to the client via mailed
       check.

       The fee refunded will be the balance of the fees collected in advance minus the daily rate*
       times the number of days in the quarter up to and including the day of termination. (*The
       daily rate is calculated by dividing the quarterly AUM fee by the number of days in the
       termination quarter).

       E. Outside Compensation For the Sale of Securities to Clients

       Neither SCS 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

SCS generally provides management supervisory services to the following types of clients:

          ❖ Individuals
          ❖ High-Net-Worth Individuals
          ❖ Pension and Profit-Sharing Plans
          ❖ Trusts, Estates, or Charitable Organizations
          ❖ Corporations or Business Entities

Minimum Account Size

There is no account minimum.