Richard P Slaughter Associates Inc

Item 5: Fees and Compensation
For managed accounts, we are compensated for our services by billing you for a percentage of the value of your
assets under management as of the last business day of each quarter. Fees are payable quarterly in advance. We
receive payment for these fees by deducting them from your account. At your request, you may pay us by check
instead.

When payment is made from your account: (1) you provide written authorization permitting fees to be paid directly
from your account held by an independent custodian; (2) we record the amount of the fee, the value of your assets
on which the fee is based, and the manner in which the fee was calculated; and (3) we subsequently notify the
custodian of the amount of the management fee to be deducted from your account. Please Note: the custodian must
agree to send you a quarterly statement indicating all amounts disbursed from the account, including the amount of
management fees paid to us.

Our firm and its employees do not accept or receive commissions, compensation, or markups for the sale of securities
or other investment products.

The standard fee schedule for discretionary managed accounts is as follows:

Total Asset Value                      Annualized Fee
On the first $1,000,000                1.25%
On the next $1,000,000                 1.00%
On the next $3,000,000                 0.75%
On the next $5,000,000                 0.65%
On the next $10,000,000                0.55%
On the next $20,000,000                0.45%
On amounts greater than $40,000,000    0.35%
Minimum Quarterly Household Fee: $3,125.00

The Schedule shown and the fees ultimately paid by client exclude commissions and any fees charged by the
broker/dealer and/or outside manager as well as brokerage commissions and advisor fees charged on mutual funds,
hedge funds, exchange traded funds, money market funds, options, and real estate.

Negotiable fees
Our investment advisory fee is negotiable at our sole discretion, depending upon objective and subjective factors
including but not limited to: the amount of assets to be managed; portfolio composition; the scope and complexity of
the engagement; the anticipated number of meetings and servicing needs; related accounts; future earning capacity;
anticipated future additional assets; the professional(s) rendering the service(s); prior relationships with our firm
and/or its representatives, and negotiations with the client. Certain legacy clients may have accepted different pre-
existing service offerings from our firm and may therefore receive services under different fee schedules than as set
forth above. As a result of these factors, similarly situated clients could pay different fees, the services to be
provided by us to any particular client could be available from other advisers at lower fees, and certain clients may
have fees different than those specifically set forth above. This includes other fee schedules where break points and
management fee percentages may be different. Additionally, assets may or may not have been excluded from
billing, aggregated with the client’s other accounts, or given a percentage discount based on negotiated fee schedules
and the amount of work being performed for the client. Our Chief Compliance Officer, Brooks Slaughter, or his
appointed delegate, remains available to address any questions that a client or prospective client may have
regarding the above fee determination.

Brokerage Transaction Costs
Because our clients have the ability to choose their broker-dealer/custodian, related transaction costs, including but
not limited to ticket charges will vary across different broker-dealers. Although the transaction fees paid by our
clients to their broker-dealer/custodian shall be evaluated by us and accordingly comply with our duty to assist our
clients in obtaining best execution, a client may pay a transaction fee that is higher than another qualified broker-
dealer might charge to affect the same transaction where we determine, in good faith, that the transaction fee is
reasonable. In seeking best execution, the determinative factor is not the lowest possible cost, but whether the
transaction represents the best qualitative execution, taking into consideration the full range of a broker-dealer’s
services, including the value of execution capability, transaction rates, and responsiveness. Please see additional
information on brokerage practices in Item 12.

Associated Margin Costs and Conflicts
From time to time and when appropriate for a given client, we may recommend the use of margin. If a client
determines to use margin to purchase assets that we will manage, we would include the entire market value of the
margined assets when computing our advisory fee. This would present a conflict of interest because it would result
in an increased advisory fee and cause the client to incur additional costs, such as margin interest assessed on fees
that are added to the client’s margin balance. An additional conflict of interest would arise if we have an economic
disincentive to recommend that the client terminate the use of margin.

Account Termination and Refunding of Fees
Either party (we or you) reserves the right to terminate the advisory agreement effective at the end of any month by
sending a letter via trackable means at least fifteen days before the termination date to the last address of record. For
managed accounts that terminate prior to the end of a quarter, the client will receive a refund of the unearned portion
of the fee on a prorated basis. We reserve the right to revise existing fee arrangements subject to 30 days’ prior
written notice to clients. We reserve the right to negotiate special fees/discounts.

For hourly consulting, we are compensated for our services at a rate of $225 per hour plus expenses. You may pay
these fees by check, either as an up-front retainer or as we send bills to you. We typically ask for an up-front
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Item 7: Types of Clients
We generally provide investment advice to the following types of clients:
   • Individuals
   • High net worth individuals
   • Pension and profit-sharing plans
   • Trusts, estates, or other charitable organizations
   • Corporations or other businesses not listed above

In order to open and maintain a Wealth Management managed account, we impose a minimum quarterly household
fee equivalent to a household size of $1,000,000. We reserve the right to open accounts below this minimum.