Verity Asset Management Inc

ITEM 5          FEES AND COMPENSATION
                DISCRETIONARY INVESTMENT ADVISORY SERVICES FALL INTO SEVERAL CATEGORIES
Full investment advisory fees are illustrated on the combination Account Application / Investment Advisory Agreement
package you execute for each account. Please read these documents carefully and thoroughly. Some account agreements
have only a single investment advisory fee; however, total fees you pay to Verity may consist of a combination of different
fees, variously described as Investment Advisory Fees, Investment Management Fees, Additional Fees for certain Models
or Strategies, and/or Platform Fees. Each fee, where applicable, is based upon a component of the overall service being
provided to you; each has a specific purpose. Please ask your Investment Advisor Representative to identify and explain
all the fees to you. The information below provides an overview of the various fees that may apply to you depending on the
type of account and your personal goals and circumstances, but full fee information for your account(s) will be found on
your Account Application / Investment Advisory Agreement package(s).
Investment advisory fees are paid in arrears unless indicated otherwise. Fees are due on the first day of the calendar
quarter and are based on each account's average daily balance during the prior calendar quarter unless indicated
otherwise. Fees are prorated for accounts opened during the quarter.
                      (1) Comprehensive Investment Advisory Services for Individual Accounts at
                      AXOS Advisor Services, Charles Schwab Institutional, Fidelity IWS, and PCS
Our Firm provides comprehensive investment management services for accounts held in custody at AXOS Advisor
Services, Charles Schwab Institutional, Fidelity IWS, and PCS.
Basic Advisory Fees
Annualized Fees:
           Assets Under
           Management (Per Custodian)
        First    $100,000                        1.50%
        Next     $ 50,000                        1.20%
        Next     $100,000                        1.15%
        Next     $250,000                        0.95%
        Next     $250,000                        0.75%
        Next     $250,000                        0.60%
        Next     $1.5 million                    0.50%
        Above    $2.5 million                    0.45%
Exceptions are the Enhanced Income Model and the Tax-Exempt Income Model. Neither of these models are subject to
the basic investment advisory fee. The Enhanced Income Model has a flat 0.60% annual advisory fee, and the Tax-Exempt
Income Model has a flat 0.90% annual advisory fee.
Alternate fee arrangements are available and may be agreed upon based on individual circumstances. We may group
certain related accounts for the purpose of determining fees. Accounts holding unmanaged securities only will not be
charged an investment advisory fee. Employees of Verity Asset Management will not be charged an investment advisory
fee for their Verity 401(k) plan accounts.
In early 2021, E*Trade Advisor Services (now AXOS Advisor Services) transferred all 403(b) accounts previously held at
E*Trade Advisor Services to the PCS Retirement custody platform. Advisory fees did not change, and grouping of PCS
accounts with related accounts remaining at AXOS Advisor Services for fee purposes did not change; however, the fee
calculation methodology for PCS accounts is now based on the end of quarter valuation rather than average daily
balance.

For further details regarding other fees and expenses, please see “General Information” below.
Model-Specific and Strategy-Specific Investment Management Fees
In addition to the Basic Advisory Fee, there may be specific investment management fees for certain models and
individual portfolio strategies.
Maximum annualized fees for Verity Small/MidCap Value, Tactical MultiCap Value, and MultiCap Value:
                         Assets Under
                         Management
        First            $ 50,000                  0.45%
        Next             $ 50,000                  0.40%
        Above            $100,000                  0.35%
Maximum annualized fees for Verity Opportunistic Income and Verity Tax-Advantaged Income:
                         Assets Under
                         Management
        First            $100,000                  0.35%
        Above            $100,000                  0.30%
Maximum annualized fees for Verity Domestic Equity Opportunity:                               0.10%
Maximum annualized fees for Verity Concentrated Rotation:                                     0.10%
Maximum annualized fees for Verity Conservative Total Return:                                 0.15%
Maximum annualized fees for Verity Dividend Builder Strategy:                                 0.35%
Maximum annualized fees for Verity High Income:                                               0.95%
Maximum annualized fees for Individual Fixed Income portfolios, or Capital Advisory Services:
                         First Year*       0.30%
        Subsequent       0.10%
        (* The First Year will run from the initial funding date through the end of the fourth full calendar quarter.)
Maximum annualized fees for models managed by outside third-party managers:
        Franklin Street Strategic Large Cap Growth:        0.60%
        Earth Equity Green Sage Sustainability             0.40%

Fees for anyone holding a Specialty Model prior to May 30, 2012, will not be subject to change for assets invested in that
specific model. Fees for anyone holding Tactical MultiCap Value prior to July 1, 2013, will not be subject to change.
Any fees may be applied at lower rates at the discretion of management.
                (2) Investment Advisory Services for Certain Defined Contribution Plan Participants and
                                         Fidelity NTF Fund Platform Accounts
...

ITEM 7 TYPES OF CLIENTS
Verity Asset Management, Inc., offers advisory services to the following types of clients:
• Individuals (both high net worth and other than high net worth individuals)
• Pension and profit-sharing plans
• Institutional clients (including endowments and foundations)

• Corporations or other businesses not listed above
• Other registered investment advisers