Signal Securities Inc

Item 5 – Fees and Compensation

The management fee for the Signal’s Asset Allocation Model, Private Client Asset Management and
Discretionary Asset Allocation Model Portfolios will be payable quarterly in advance of service based on
the account valuation on the last day of the preceding calendar quarter.

Management fees for Signal’s 401K Optimizer clients are calculated in arrears at the end of each
quarter based on the quarter ending Account balance and deducted from the Account in the following
month. Accounts other than the 401k Optimizer accounts may be billed in arrears if requested by the
client and agreed to contractually by the firm.

For management fees payable in advance, calculations for a new account will be based upon the date
the Custodian received the monies and/or securities. The management fee on new accounts will be
payable in advance for the remainder of the current calendar quarter on a pro‐rata basis. At the
discretion of Signal, the values of related accounts may be grouped together for purposes of reducing
the overall management fees being charged to each individual related account. All such fees will be
deducted from Client’s account or billed to client for payment to Signal depending on the client’s
preference.

Payment of management fees to Signal may be made by Custodian only when all three of the following
criteria are met: (1) Client has provided written authorization to Signal permitting the fees to be paid
directly from the Client’s account held by the Custodian; (2) Custodian sends a statement to the client on
at least a quarterly basis showing the advisory fees paid directly to Signal, as well as any other
disbursements from the account; (3) Signal does not and will not have custody of a client’s funds or
securities.

If Investment Advisory Contract is terminated, collected but unearned management fees are refundable
to Client on a pro‐rata basis in amounts of ten ($10) dollars or greater. No billing adjustment shall be
made for interim additions or withdrawals from the account.

The Client has the right to rescind their Investment Advisory Contract with Signal for a complete refund

of management fees within five (5) business days after entering into the contract. After this initial five
business day period, either party may terminate this agreement by giving not less than ten (10) days’
notice in writing to the other party. Upon termination of the Investment Advisory Contract, collected
but unearned management fees are refundable to the Client on pro‐rata basis.

All notices required or permitted to be given under the Investment Advisory Contract are to be in writing
and delivered to Signal, at 700 Throckmorton, Fort Worth, Texas 76102, or, if to client, to the address of
record on the account.

Signal reserves the right to negotiate fees at its own discretion. The specific manner in which fees are
charged by Signal is established in a client’s written agreement with Signal, but based on the following
schedule for each model:

Asset Allocation Model
An annual fee will be charged based on the total assets under management on a non‐retroactive
basis. These fees are payable in advance at the beginning of each calendar quarter.

$25,000 – $100,000          2.00%
$100,001 ‐ $250,000         1.75%
$250,001 ‐ $500,000         1.50%
$500,001 ‐ $1,000,000       1.00%
Over $1,000,001             0.75%

Private Client Asset Management Model

An annual fee will be charged based on the total assets under management on a non‐retroactive
basis. These fees are payable in advance at the beginning of each calendar quarter.

With Limited Partnerships and/or options             Without Limited Partnerships and/or options

$100,000 – UP            3.00%                     $100,000 ‐ $500,000             1.75%
                                                   $500,001 ‐ $1,000,000           1.50%
                                                   Over $1,000,001                 1.25%
Discretionary Asset Allocation Model Portfolios

While the majority of Signal’s advisory fees are negotiable, the Discretionary Asset Allocation Portfolio is
not negotiable. Signal Securities implements a tiered fee schedule, specific to the Discretionary Model
Portfolio. In said model, clients are charged at multiple rates. For the first $25,000, the rate is 1.50%. Once
the $25,000 threshold is reached, assets over $25,000 are charged at 1.25%.

Management fees will be assessed as follows:

      Accounts under $25,000            1.50% Annual Fee

      Accounts over $25,000             1.25% Annual Fee

401K Optimizer

Signal’s management fee for 401K Optimizer clients will be charged at an annual rate of 1.00%. The fee
will be billed in arrears based on the value of the client’s account on the last market day of the previous
calendar quarter. The Fee will be prorated for any partial quarter.

Flat Fee Planning

Signal or one of its Investment Adviser Representatives may charge an hourly fee not to exceed
$250.00 / hour for the creation of a financial plan or asset review.

Separately Managed Account (SMA)

Managed Account Select (Select) and Managed Account Access (Access) Program Fee Schedules. Fees
are charged monthly, in arrears, based on the average daily balance for the previous month. The asset‐
based fee of Select and Access includes Schwab's brokerage and custody services and each money
manager's services. This fee is in addition to your advisory fee. Schwab calculates household fees by
totaling the value of the assets in your client's Managed Accounts within the following categories:
equity, ETF, fixed income and fixed income ladder.

Account minimums are $100,000 for most equity strategies, $250,000 for most fixed income strategies
and range from $250,000 to $650,000 for Diversified Portfolios in Managed Account Select. The Equity
Strategy Fee Schedule is also applicable to Diversified Portfolios and balanced strategies.
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Item 7 – Types of Clients

Signal provides portfolio management services to individuals, high net worth individuals, pension and

profit‐sharing plans, charitable organizations, and corporations.

Signal’s minimum account size is $100,000.00 for the Private Client Asset Management Model and
$25,000.00 household aggregate for all other models except Signal’s Discretionary Model Portfolio which
has no set minimum initial investment amount.