Asset Management Advisors LLC

Item 5. Fees and Compensation
   Description
      AMA is a “fee only” investment advisor.
       AMA bases its Investment Management fees on a percentage of assets under
       management

                            Asset Management Advisors LLC

    The annual Managerial Agency Agreement fee for Investment Management is
    based on a percentage of the investable assets according to the following
    tiered schedule:
        1.00% on the first $1,000,000
        0.80% on the next $2,000,000 (from 1,000,001 to 3,000,000); and
        0.50% on the assets above $3,000,000.

    AMA does not charge a minimum annual fee. AMA’s fees are negotiable.
    Current client relationships may exist where the fees differ from the fee
    schedule above.
    Fees for Family Office activities and Oil and Gas Management are a
    combination of fixed fees, percentage of revenues and hourly charges. Fee
    schedules are available upon request.

Fee Billing
    Investment management fees are taken quarterly in advance. The fee is
    based on the market value of the account as of the calculation date. The
    securities pricing is the same as is used by Schwab for their monthly client
    statements. The value used by AMA will differ from the value reported by
    Schwab should a trade be made that will settle after the calculation date.
    AMA uses “trade date” for its reports while Schwab uses “settlement date” for
    its reports. AMA also includes the accrued interest on bonds while Schwab
    does not.
    When clients complete the Limited Power of Attorney for trading they also
    authorizes Schwab to pay AMA’s fee directly from the client’s account. At the
    time the fee is taken, AMA sends a copy of the fee invoice to the client.
    Schwab also notifies the client that a fee has been taken.
    The fees for Family Office and Oil & Gas Management are computed monthly
    and quarterly. The fee is taken from the client bank account maintained by
    AMA for operation of the Family Office and or Oil and Gas Management
    relationship. AMA sends a copy of the fee invoice to the client when fees are
    taken.
    Fees for all other services are taken quarterly from either the client’s account
    at Schwab or the client bank account maintained by AMA.

Other Fees
    Custodians may charge transaction fees on purchases or sales of certain
    mutual funds and exchange-traded funds. These transaction charges are
    usually small and incidental to the purchase or sale of a security. The
    selection of the security is more important than the nominal fee that the
    custodian charges to buy or sell the security.

                        Asset Management Advisors LLC

   Expense Ratios
      Mutual funds and exchange-traded funds charge a management fee for their
      services as investment managers. The management fee is a part of the costs
      that are reported as an expense ratio. For example, an expense ratio of 0.50
      means that the mutual fund company charges 0.5% for their services. These
      fees are in addition to the fees paid by the client to AMA.

Item 7. Types of Clients
   Description
      AMA generally provides investment advice and management to individuals,
      family limited liability companies, trusts, corporations and retirement plans.
       As stated on page 1, AMA provides a full range of services to its clients.
       Client relationships vary in scope and length of service.

   Account Minimums
      The minimum relationship size is $1,000,000 of assets under management,
      which equates to an annual fee of $10,000.
       AMA has the discretion to waive the relationship minimum.
       Relationships of less than $1,000,000 may be set up if AMA and the client
       believe they can attain a mutually beneficial relationship comparable to those
       relationships with AMA clients having investable assets greater than
       $1,000,000. Other exceptions will apply to employees of AMA and their
       relatives, or relatives of existing clients.
       Account Minimums do not apply to Family Office and Oil & Gas Management
       clients. Potential Family Office and Oil & Gas Management clients enter into
       negotiations with AMA to determine both the extent of the relationship and the
       fee to be charged for those services.

                            Asset Management Advisors LLC