Tectonic Capital Advisors LLC

Item 5 - Fees and Compensation

Advisory Fees
Tectonic Capital Advisors fees are negotiable.

Family Office Services Fees
The negotiable fee for Tectonic Capital Advisors’ family office services is based on a fixed schedule and is
dependent on the scope, complexity, time commitment, and resources expected to be devoted to
managing, advising on, and administering your assets, investment real estate, businesses, insurance
products and policies, holdings of restricted stock/options, partnerships, hedge funds, private equity,
and other alternative holdings, annuities, retirement plans, and all other investment assets. The exact
fee and fee payment arrangement will be listed in the Family Office Services Agreement signed by our
firm and the client.

The family office services fee is in addition to any asset-based fees paid by the client in connection to
portfolio management services that are delivered pursuant to the terms of a separate agreement.

The fee will be prorated and billed monthly, in arrears, unless otherwise agreed in writing by the parties.
The fixed fee may be adjusted annually by our firm, in our sole discretion on thirty (30) days’ notice to
the client. Any such fee adjustments shall become effective unless otherwise objected to by the client
within the notice period.

The Family Office Services Agreement may be terminated for any reason by us or the client within five
(5) business days after entering into the agreement without cost and penalty. Thereafter, either party
may terminate the Agreement at any time by providing thirty (30) days’ advance written notice to the
other party. Fees will be prorated to the date of termination and any unearned pre-paid fees will be
promptly refunded to the client.

Portfolio Management Services Fees
Tectonic Capital Advisors’ annual fee for portfolio management services is based upon a percentage (%)
of the market value of the assets under management. This annual fee is calculated and deducted by
Tectonic Capital Advisors (or a designated third party), and is 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 custodial account.
Clients will provide authorization to deduct fees upon account opening and client may revoke this
authorization with upon written notice to the custodian and/or Tectonic Capital Advisors.

Tectonic Capital Advisors charges an annual fee of up to 1.00% of assets under management. The fee is
negotiable depending on the complexity of client goals and objectives and level of services rendered.
The exact fee payable by the client will be clearly listed in the portfolio management services signed by
the firm and the client.

In addition to Tectonic Capital Advisors’ 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:

Tectonic Capital Advisors, LLC
Form ADV Part 2A Brochure

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

IRA Rollover Considerations
As a normal extension of financial advice, we provide education or recommendations related to the
rollover of an employer-sponsored retirement plan. A plan participant leaving employment has several
options. Each choice offers advantages and disadvantages, depending on desired investment options
and services, fees and expenses, withdrawal options, required minimum distributions, tax treatment,
and the investor's unique financial needs and retirement plans. The complexity of these choices may
lead an investor to seek assistance from us.

An Associated Person who recommends an investor roll over plan assets into an Individual Retirement
Account (“IRA”) may earn an asset-based fee as a result, but no compensation if assets are retained in
the plan. Thus, we have an economic incentive to encourage an investor to roll plan assets into an IRA.
In most cases, fees and expenses will increase to the investor as a result because the above-described
fees will apply to assets rolled over to an IRA and outlined ongoing services will be extended to these
assets.

We are fiduciaries under the Investment Advisers Act of 1940. We have to act in your best interests and
not put our interest ahead of yours. At the same time, the way we make money creates some conflicts
with your interests.

Additional Information About Fees and Expenses
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Item 7 - Types of Clients

Tectonic Capital Advisors’ clients are primarily high net worth clients and their extended family
members and holdings, including their various business entities, trusts and retirement plans.

We require a minimum of $1,000,000 to establish an advisory relationship with us. We reserve the right
to waive or reduce our required minimum based on unique circumstances, special arrangements, or
preexisting relationships. We also reserve the right to decline services to any prospective client for any
non‐discriminatory reason.