Twenty-First Tailored Solutions Inc

Item 5: Fees and Compensation

A. Fee Schedule

Investment Services Fees

         Total Assets Under Management                     Annual Fee

        All Assets Under Management                      3.24 BPS – 47.5 BPS
                                                         (0.0324% – 0.475%)

These fees were negotiated with each client on a case by case basis at the time
each client account was established. The final fee schedule is described in the
Investment Advisory Contract.

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Advisory fees are withdrawn directly from the client’s accounts with client written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 monthly in arrears.

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 TFTS. Please see Item 12 of this
brochure regarding broker/custodian.

D. Prepayment of Fees

TFTS collects its fees in arrears and does not collect fees in advance.

Item 7: Types of Clients

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

           • High-Net-Worth Individuals
           • Corporations or Business Entities
           • Advisors of High Net Worth Clients
           • Trusts

Minimum Account Size

There is no account minimum.

     Item 8: Method of Analysis, Investment Strategy, and Risk of
                          Investment Loss

       A. Methods of Analysis and Investment Strategies

       TFTS implemented the Short Against the Box Strategy for each client based upon the
       goals of the client.
       Investing in securities involves a risk of loss that you, as a client, should be
       prepared to bear.

       B. Material Risks Involved

       The Short Against the Box Strategy involves the use of margin. If a margin call
       cannot be met, then a portion of the Box may need to be closed which could result
       in a capital gain to the account.
       Past performance is not a guarantee of future returns. Investing in securities
       involves a risk of loss that you, as a client, should be prepared to bear.