Tectonic Advisors LLC

Fees and Compensation - Item 5

Separately Managed Account Program (SMA Program) Fees
The Advisor’s annual fee for investment management services provided in the SMA Program shall be based
upon a percentage (%) of the market value of the assets under management. This annual fee shall be calculated
by Tectonic Advisors and be prorated and paid quarterly, in arrears, based upon the account average daily
balance for the quarter. The fee cannot be raised without prior written notification to the Client. Fees will be
deducted directly from the client’s account. Clients will provide authorization to deduct fees upon account
opening and client may revoke this authorization with upon written notice to Custodian and Tectonic Advisors.

For the SMA program, Tectonic Advisors charges an annual fee of up to 0.80% of assets under management.
The fee is negotiable depending on the complexity of client goals and objectives and level of services rendered.
Investors accessing Tectonic Advisors strategies through the Model Portfolio Advisor Program may pay
materially different fees for the same strategies.

In addition to Advisor’s annual investment management fee, the Client shall also incur fees and expenses
charged by mutual funds or exchange traded funds, third party advisory fees, and trading/custodial fees:

1. In addition to the Advisors annual fee, each mutual fund or ETF is subject to investment advisory,
administrative, distribution, transfer agent, custodial, legal, audit and other customary fees and expenses
related to investment in investment companies as set forth in the prospectuses of the funds. These fees and

Tectonic Advisors LLC
Form ADV Part 2A Brochure

expenses are paid by the funds, but ultimately are borne by clients as fund shareholders and are in addition to
the Advisors annual fee. The securities, including mutual funds and ETFs are available outside of Tectonic
Advisors accounts with paying the Advisors annual fee.

2. In some cases, Tectonic Advisors may customize allocations that include third-party Investment Managers.
Clients will generally execute separate investment advisory agreements with the third-party Investment
Managers and each separate Manager may charge an advisory fee.

3. The Advisors annual fee does not cover certain costs or charges imposed by the custodian or other third
parties, including brokerage commissions, mark-ups/mark-downs, odd-lot differentials, exchange fees,
contingent redemption fees, and transfer taxes mandated by law. Other custodial charges may be assessed for
special services elected by the clients, including electronic fund and wire transfer fees, certificate delivery fees
and reorganization fees.

T-Bank Program Fees
The fees paid by T Bank to Tectonic Advisors related to providing investment advisory services are paid out of
the 65 basis points trust fee charged by T Bank to T-Bank client accounts. The bank will pay a portion of this fee
to Tectonic Advisors, and the qualified custodians engaged to provide services in the pooled investment
program. Tectonic Advisors will receive 54 basis points for investment advisory services based upon the total
value of the assets committed to the pooled investment program including cash allocation.

Model Portfolio Advisor to UMA Program Fees
With respect to the Unified Managed Account Program (UMA) Platform, clients will be charged the following
fees: an overlay management fee payable to Tectonic Advisors, an advisory fee payable to CWA, a model
provider fee, and an asset-based fee (not based on the number of transactions in the client’s account) payable
to Charles Schwab & Co., Inc. (“Schwab”) for custody and execution services:

Fees paid to Tectonic Advisors
Tectonic Advisors, in addition to providing due diligence services to CWA, also serves as a manager. Tectonic
Advisors receives a fee of up to 35-basis points, or 0.35% from UMA accounts for assets allocated to the UMA
program. Tectonic Advisors’ fee is in addition to the fee that CWA receives. Fees paid to CWA will be listed in
CWA’s Form ADV Part 2 Brochure and/or in the statement of investment selection that is provided by CWA to
the client.

Model Provider Fee
The Model Provider receives a fee of up to 0.70%. The Model Provider may be an investment adviser, a mutual
fund, an exchange traded fund or a pooled investment vehicle. The Model Provider Fee reflects the impact of
any Model Provider fees applicable to the selected model. For example, if a Model Provider were to charge a
fee of 1.00%, and 10% of the respective model were allocated to the Model Provider, and no other Model
Providers were applicable to the Model, the impact on the Total Fee for the Model would be 0.10% (1.00% X
10% allocation = 0.10% of total account). If the client elects the tax overlay management services, there will be
an additional fee of 10 basis points.

Custodial Fees
Clients are responsible for the payment of all third-party fees (i.e. custodian fees, brokerage fees, transaction
fees, block trading fees, etc.). Those fees are separate and distinct from the fees and expenses charged by
Tectonic Advisors. Please see Item 12 of this brochure regarding the broker-dealer/custodian.

Tectonic Advisors LLC
Form ADV Part 2A Brochure

The UMA Program Fee will be debited from the Client’s Accounts on a quarterly basis in arrears. The fee is
debited from the client’s account at the instruction of Tectonic Advisors, at the end of each quarter based upon
the average daily balance of the account. If insufficient cash is available to pay such fees, securities in an amount
equal to the balance of unpaid fees will be liquidated to pay for the unpaid balance. Advisory fees for alternative
investments offered on the Capital Integration Systems LLC (“CAIS”) Alternative Investments Portal will be based
on quarter end value.

There will be additional fund fees for mutual funds, ETFs and private funds, depending on the model chosen.
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Types of Clients - Item 7

Tectonic Advisors’ clients are Investment Advisory Firms, including an affiliated firm, banking institutions,
platform program providers, individuals, corporations, trusts and pension plans.

                     Methods of Analysis, Investment Strategies and Risk of Loss - Item 8

Methods of Analysis and Investment Strategies
Tectonic Portfolio strategies are designed to seek returns from global markets that are in excess, over full market
cycles, of balanced global stock and bond portfolios with similar risk. Tectonic Advisors’ proprietary sentiment
and momentum triggers aim to reduce the downside risk of idiosyncratic market events for which there is no
historical precedent. Each strategy seeks to achieve its investment objectives by investing in a wide variety of
asset classes creating diversified portfolios. Each strategy is then dynamically managed, utilizing rebalancing
disciplines based on certain criteria. ETFs selected for inclusion in the portfolio are based on a variety of factors,
which may include: investment or sector focus of the ETF, portfolio fit, ETF sponsor and liquidity of the
underlying investments and, thus, the ETF itself, among other factors.

Tectonic Advisors LLC
Form ADV Part 2A Brochure

Investment managers and mutual funds included on Tectonic Advisors’ approved lists ("Approved Funds" and
"Approved Managers") are recommended based on certain quantitative criteria. The criteria will include length
of track record, performance levels, amounts invested or under management ("quantitative criteria"), and
certain qualitative criteria. Qualitative criteria may include the consistency of investment style, employee
turnover, efficiency and capacity. Efficiency and capacity is gathered and evaluated by Tectonic Advisors
concerning various aspects of the fund's or manager's business. Tectonic Advisors also conducts on site
examinations as needed of investment managers and evaluates the results. Investment managers and mutual
funds included in databases utilized by Tectonic Advisors are reviewed periodically against Tectonic Advisors’
initial quantitative criteria to determine whether a manager or fund is eligible for consideration as an additional
Approved Fund or Approved Manager.

Approved Managers and Approved Funds are reviewed periodically to determine whether they continue to
meet quantitative maintenance criteria adopted by Tectonic Advisors or when market conditions or specific
issues with a Manager or Fund warrant. Any Approved Fund or Approved Manager that fails to meet the
Provider’s and Tectonic Advisors’ maintenance criteria is first placed on a watch list then potentially
recommended for removal.

Tectonic Advisors, uses its Approved Funds and Approved Managers list to make investment decisions for all of
its Investment Portfolio Management and Due Diligence Provider Services.

Risk of Loss
Investments made by Tectonic Advisors, and/or Approved Managers and/or Investment Funds, are subject to
investment loss. The following risk of loss discussion includes not just investments made by Tectonic Advisors
directly, but also investments made by Investment Managers and/or contained in Investment Funds.

General Investment Risk: All investments come with the risk of losing money. Investing involves substantial
risks, including complete possible loss of principal plus other losses and may not be suitable for many members
of the public. Investments, unlike savings and checking accounts at a bank, are not insured by the government
to protect against market losses. Different market instruments carry different types and degrees of risk. Clients
should familiarize themselves with the risks involved in the particular market instruments they intend to invest
in. The discussion below does not purport to be a complete enumeration or explanation of the risks involved in
the Advisor’s investment programs. As the Advisor’s investment programs develop and change over time,
clients may be subject to additional and different risk factors.

Investments May Lose Value: There can be no assurance that a Fund will achieve its investment objectives, and
past performance should not be seen as a guide to future returns. The value of investments and the income
derived may fall as well as rise and investors may not recoup the original amount invested in a Fund. An
investment in a Fund may also be affected by any changes in exchange control regulation, tax laws, withholding
taxes, international, political and economic developments, and government, economic or monetary policies.

Interest Rate Risk: A Fund that invests in bonds and other fixed income securities may fall in value if interest
rates change. Generally, the prices of debt securities rise when interest rates fall, and their prices fall when
interest rates rise. Longer term debt securities are usually more sensitive to interest rate changes.

Credit Risk: A Fund, that invests in bonds and other fixed income securities, is subject to the risk that the issuer(s)
may not make required interest payments. An issuer suffering an adverse change in its financial condition could
lower the credit quality of a security, leading to greater price volatility of the security. A lowering of the credit

Tectonic Advisors LLC
Form ADV Part 2A Brochure

rating of a security may also offset the security's liquidity, making it more difficult to sell. Funds investing in
lower quality debt securities are more susceptible to these problems and their value may be more volatile.

Futures and Options in Funds: Funds may invest in options and futures on securities, indices and interest rates
for the purpose of efficient portfolio management. Also, Funds may invest in futures, options or forward foreign
exchange contracts to hedge market and currency risks. Transactions in futures carry a high degree of risk. The
amount of the initial margin is small relative to the value of the futures contract so that transactions are
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