The Moorings Group LLC

Item 5 Fees and Compensation
A. Our fees are based on a percentage of the value of your assets under management as of a
specified date. Our fees are not based on a share of capital gains or capital appreciation of the funds
or any portion of the funds in your account. The Moorings Group will receive compensation for
managing your portfolio based on the following fee schedules:

Balanced Portfolios for Direct Clients:

Account Size                               Maximum Annual Fee
$500,000 to $999,999                               1.00%
$1,000,000 to $2,999,999,999                        .75%
$3,000,000 to $4,999,999,999                        .50%
$5,000,000 to $14,999,999,999                       .35%
$15,000,000 and above                            Negotiable

Fixed Income Portfolios for Direct Clients:

Account                                  Maximum Annual Fee
$500,000 to $999,999                              .50%
$1,000,000 to $2,999,999                          .40%
$3,000,000 to $4,999,999                          .36%
$5,000,000 to $14,999,999                         .25%
$15,000,000 and above                             .20%

Sub-Advisory Fixed Income Portfolios:

Account Size                             Maximum Annual Fee
$500,000 to $999,999                              .25%
$1,000,000 to $4,999,999                          .22%
$5,000,000 to $9,999,999                          .20%
$10,000,000 and above                             .15%

We sometimes make exceptions to our general fee schedule. The Moorings Group negotiates lower
fees based on the size of the portfolio or such other factors as we determine and in our sole discretion.
Fee reductions or waivers are available to our firm's personnel and family members.

You may make additions to or withdrawals from your account provided it continues to meet our
minimum account size requirements. For Moorings Group direct accounts, additional assets deposited
into an account after it is opened which represent 10% or more of total account assets will be charged
a pro-rata fee based upon the number of days remaining in the then current calendar quarter. Assets
withdrawn from an account after it is opened which represent 10% or more of total account assets will
be charged a pro-rata fee based on the number of days in the calendar quarter up to the withdrawal
date. No fee adjustments will be made for account appreciation or depreciation. If your account falls
below the minimum account size requirement, The Moorings Group reserves the right to terminate our
advisory services. Withdrawals from your account can affect our ability to manage your account due to
reduced ability to diversify the account.

See Item 5(D) for the billing information on sub-advisory accounts.

B. For Moorings Group direct accounts, advisory fees are calculated as of the end of each calendar
quarter based on the ending value of your account as provided by the account custodian. Fees will be
charged to and collected directly from your account in the following quarter, provided you have given
The Moorings Group and the custodian written authorization to debit the fee. Your custodial account
statement will reflect the deduction of your quarterly advisory fees. You or your primary adviser may
also receive a fee statement from The Moorings Group. Except for ERISA and IRA accounts, you may
reimburse your account for advisory fees paid to The Moorings Group.

See Item 5(D) for the billing information on sub-advisory accounts.

C. In addition to the advisory fees above, you will pay transaction fees for securities transactions
executed in your account in accordance with the custodian's transaction fee schedule. You may also
pay fees for custodial services, account maintenance fees, and other fees associated with maintaining
the account. These fees are not charged by The Moorings Group but are charged by the account

custodian. The Moorings Group does not share in any portion of these fees. Additionally, on any
mutual fund purchased, you will pay your proportionate share of a fund's management and
administrative fees and sales charges as well as the mutual fund adviser's fee. These advisory fees
are not shared with The Moorings Group and are compensation to the fund manager. See Item 8(B) for
additional information on mutual fund investments.

See Item 12 "Brokerage Practices" for additional information.

D. The Moorings Group bills client fees in arrears for both The Moorings Group direct accounts and
sub-advisory accounts where our firm is authorized to debit fees directly from the account.

When acting in a sub-advisory capacity, the primary adviser can be responsible for fee calculation and
debiting from the account. Under these circumstances, The Moorings Group will share in the fees
based on the primary adviser's billing policies and procedures, including but not limited to calculation
method, billing cycle and cash flows.

For client portfolios where we are acting as a sub-adviser, and if the primary adviser charges asset
management fees in advance, the primary adviser's agreement with The Moorings Group and/or the
primary adviser's agreement with the Client will dictate the procedures and notifications required for
termination of our services and any adjustment of fees.

E. Neither The Moorings Group nor any Advisory Representatives of The Moorings Group accept
compensation for the sale of securities or other investment products, including asset-based sales
charges or service fees from the sale of mutual funds.

Item 7 Types of Clients
The Moorings Group offers asset management services to individuals, trusts, estates, charitable
organizations, corporations, foundations, municipalities and other business entities.

If you wish to engage The Moorings Group for advisory services, you will execute an Investment
Advisory Agreement with our firm. The Moorings Group advisory agreement outlines the
responsibilities of you and The Moorings Group as well as any authorizations granted to our firm with
regard to the management of your portfolio(s). You are required to establish an account with a qualified
custodian and deposit cash, cash equivalents and/or securities to that account. See Item 15 on
"Custody" for additional information.

Clients of a primary adviser who have selected The Moorings Group as a sub-adviser will normally
execute agreements with those firms and may or may not have a direct contract with The Moorings
Group.

The Moorings Group will generally require a minimum of $500,000 in account assets in order to
provide investment advisory services. In our sole discretion, we will waive the minimum account size
requirement and accept accounts valued at less than $500,000 if the client plans to add additional
assets in the future and/or the client has other accounts (or related accounts) already managed by our

firm. You may make withdrawals from an account provided that the account assets continue to meet
the minimum account size requirements. If an account falls below the minimum account size
requirement, we reserve the right to terminate advisory services.

Clients with assets under management of less than $500,000 are advised that portfolio performance
may suffer due to the difficulties associated with sufficiently diversifying smaller accounts.

The Moorings Group may have different minimum account requirements when acting as a sub-adviser.