Investors Research Corporation

Item 5 – Fees and Compensation

General Fee Information
Fees paid to IRC are exclusive of all custodial and transaction costs paid to the client’s custodian, brokers
or other third-party consultants. Please see Item 12 – Brokerage Practices for additional information.
Fees paid to IRC are also separate and distinct from the fees and expenses charged by mutual funds, ETFs
(exchange traded funds) or other investment pools to their shareholders (generally including a
management fee, 12b-1 fees and other fund expenses, as described in each fund’s prospectus or offering
materials). The client should review all fees charged by funds, brokers, IRC and others to fully understand
the total amount of fees paid by the client for investment and financial-related services.

Some mutual funds pay 12b-1 service fees (normally 0.25% per year) to the Custodian. These fee
arrangements will be disclosed upon request of a client and are available in the applicable fund‘s
prospectus. IRC does not typically recommend mutual funds that charge 12b-1 fees when other share
classes are available. However, there are instances in which mutual funds charging 12b-1 fees are
transferred into IRC, or clients in a retirement plan may be limited in their investment choices to include
funds charging such fees. In this case, the Firm may recommend the client hold the existing share class,
instead of selling the fund and buying a lower-cost share. When recommending to sell or hold such
positions, a variety of factors will be considered, including the anticipated investment timeframe, potential
tax consequences, anticipated transaction costs, the client’s investment objectives, and other inputs. IRC
does not receive any part of the fees charged by mutual funds.

Financial Planning Fees
When IRC provides stand-alone financial planning services to clients, these fees are negotiated at the time
of the engagement for such services. Financial planning fees will be charged on an agreed upon fixed fee,
ranging from $250 to $500 per session, depending on the nature and complexity of each client's
circumstances. Fees are due immediately following the scheduled planning session. IRC will waive
financial planning fees at its discretion; financial planning fees will typically be waived when the client is
also engaged for ongoing portfolio management with at least $250,000 managed by IRC.

Investment Advisory Fees
IRC’s Investment Advisory Fee Schedule is based upon a percentage of assets under management. Fees are
billed quarterly in arrears, based on the average daily balance of assets under management in the client’s
portfolio during the previous calendar quarter. If advisory services commence after the start of a calendar
quarter, the initial fees are based upon the average daily balance from the day IRC begins management of
account assets through the last business day of the calendar quarter that an account was opened. Fees are
based on the assets in the account per the tiered schedule below and in some instances, may be negotiated.

                               Investment Advisory Tiered Fee Schedule

                           Portfolio Balance                   Annualized Rate
                     $0 - $499,999                                 1.30%
                     $500,000-$4,999,999                           1.10%
                     $5,000,000 - $9,999,999                       1.00%
                     $10,000,000 - $19,999,999                     0.90%
                     Greater than $20,000,000                      0.80%

For example, if the assets in the account are $1,500,000, the first $499,999 is billed at 1.3%, the next
$1,000,001 is billed at 1.1%. The Investment Advisory Fee is deducted by the custodian quarterly from the
client’s account. The client authorizes the custodian to debit their account(s) for Investment Management
Fees due to IRC.

Either IRC or the client may terminate their Investment Advisory Agreement at any time, subject to any
written notice requirements in the agreement. In the event of termination, any fees due to IRC from the
client will be invoiced or deducted from the client’s account prior to termination. Termination of the
contract will not affect any liabilities or obligations of the parties from transactions initiated before
termination of this Agreement or a client's obligation to pay advisory fees if paid in arrears (pro-rated
through end of the month in which termination is effective).

Upon written receipt of notice to terminate its client agreement and unless specific transfer instructions
are received, IRC and its agent will cease advisory services. Should the client provide specific instructions
to liquidate, IRC will proceed with liquidation of the client’s account in an orderly and efficient manner.
There will not be a charge by IRC for such redemption; however, the client should be aware that certain
mutual funds impose redemption fees as stated in each company’s fund prospectus in certain
circumstances. Clients must keep in mind that the decision to liquidate security issues or mutual funds may
result in tax consequences that should be discussed with the client’s tax advisor. Factors that could affect
the orderly and efficient manner would be size and types of issues, liquidity of the markets, and market
makers’ abilities. Should the necessary securities’ markets be unavailable and trading suspended, efforts

to trade will be done as soon as possible following their reopening. Due to the administrative processing
time needed to terminate client’s investment advisory service and communicate the instructions to client’s
investment advisor, termination orders received from clients are not market orders; it may take several
business days under normal market conditions to process the client’s request. During this time, the client’s
account is subject to market risk. IRC and its agent are not responsible for market fluctuations of the client’s
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Item 7 – Types of Clients

IRC provides investment advisory services to individuals, high net worth individuals, corporations, and
pension plans. The minimum portfolio value eligible for an income strategy portfolio is $500,000. This
minimum requirement is negotiable and can be waived by IRC at its discretion. IRC does not require a
minimum asset size for its other management styles.