Allegiance Financial Group Inc

Item 5           Fees and Compensation

   A.
         DISCRETIONARY AND NON-DISCRETIONARY ADVISORY PROGRAM

         The current annual Program fee is negotiable, depending upon the amount and type of the
         Program assets, but will not exceed 2.00% and is generally as follows:

                  PORTFOLIO VALUE                     ANNUAL ADVISORY FEE
           $1,000,000 OR LESS                                1.85 %
           NEXT $1,000,000                                   1.65 %
           NEXT $1,000,000                                   1.40 %
           NEXT $1,000,000                                   1.25 %
           NEXT $2,000,000                                   1.00 %
           GREATER THAN $6,000,000                           0.75 %

         Richard Brothers, Financial Advisors’ annual investment advisory fee includes investment
         advisory services, and, to the extent specifically requested by the client, financial planning,
         and consulting services. Richard Brothers, Financial Advisors reserves the right to not
         provide financial planning and consulting services to clients with less than $250,000 under
         its management. If the client requires extraordinary planning or consultation services (to
         be determined in the sole discretion of Richard Brothers, Financial Advisors), Richard
         Brothers, Financial Advisors may determine to charge for these additional services, the
         dollar amount of which shall be set forth in a separate written notice to the client.

         LIMITED NON-DISCRETIONARY PROGRAM
         If a client engages Richard Brothers, Financial Advisors to provide its limited non-
         discretionary advisory services, Richard Brothers, Financial Advisors charges a flat rate of
         $500.00 per year for those services. This fee is paid quarterly in advance.

         FINANCIAL PLANNING AND CONSULTING SERVICES (STAND-ALONE)
         To the extent specifically requested by a client, Richard Brothers, Financial Advisors may
         provide financial planning and/or consulting services (including investment and non-
         investment related matters, including estate planning, insurance planning, etc.) on a stand-
         alone fee basis. Richard Brothers, Financial Advisors’ planning and consulting fees are
         negotiable, but generally range from $3,000 to $20,000 on a fixed fee basis, and from $150
         to $300 on an hourly rate basis, depending upon the level and scope of the service(s)
         required and the professional(s) rendering the service(s). Financial Planning services can
         be added to other engagements for a flat fee, paid quarterly. Richard Brothers, Financial
         Advisors has the sole discretion to determine if and when to charge additional fees under
         its Program and will then require client to enter into a financial planning agreement.

   B. Clients may elect to have Richard Brothers, Financial Advisors’ advisory fees deducted
      from their custodial account. Both Richard Brothers, Financial Advisors’ Investment
      Advisory Agreement and the custodial/clearing agreement may authorize the custodian to
      debit the account for the amount of Richard Brothers, Financial Advisors’ investment
      advisory fee and to directly remit that advisory fee to Richard Brothers, Financial Advisors
      in compliance with regulatory procedures. In the limited event that Richard Brothers,
      Financial Advisors bills the client directly, payment is due upon receipt of Richard

    Brothers, Financial Advisors’ invoice. Richard Brothers, Financial Advisors shall deduct
    fees and/or bill clients quarterly in advance, based upon the market value of the assets on
    the last business day of the previous quarter.

C. As discussed elsewhere in this Brochure, unless the client directs otherwise or an individual
   client’s circumstances require, Richard Brothers, Financial Advisors generally requires that
   Pershing serve as the broker-dealer for client accounts. Broker-dealers such as Pershing a
   charge brokerage commissions and/or transaction fees for effecting certain securities
   transactions (i.e. transaction fees are charged for certain mutual funds, commissions are
   charged for individual equity transactions, and mark-ups and mark-downs are charged for
   fixed income transactions). In addition, client accounts may invest in mutual funds
   (including money market funds) and ETFs that have various internal fees and expenses (i.e.
   management fees), which are paid by these funds but ultimately borne by clients as a fund
   shareholder. These internal fees and expenses are in addition to the fees charged by Richard
   Brothers, Financial Advisors.

D. Richard Brothers, Financial Advisors’ annual investment advisory fee shall be prorated and
   paid quarterly, in advance, based upon the market value of the assets on the last business
   day of the previous quarter. Richard Brothers, Financial Advisors generally requires a
   minimum annual fee of $2,000 for investment advisory services. Richard Brothers,
   Financial Advisors, in its sole discretion, may charge a lesser minimum fee and/or waive
   or reduce its minimum fee requirement based upon certain criteria (i.e. anticipated future
   earning capacity, anticipated future additional assets, dollar amount of assets to be
   managed, related accounts, account composition, negotiations with client, etc.).

    The Investment Advisory Agreement between Richard Brothers, Financial Advisors and the
    client will continue in effect until terminated by either party by written notice in accordance
    with the terms of the Investment Advisory Agreement. Upon termination, Richard Brothers,
    Financial Advisors shall refund the pro-rated portion of the advanced advisory fee paid
    based upon the number of days remaining in the billing quarter.
...

Item 7           Types of Clients

         Richard Brothers, Financial Advisors’ clients shall generally include individuals, business
         entities, trusts, estates, charitable organizations, pension and profit-sharing plans. For
         information about fees, see Item 5 above.