Callahan Capital Management Inc

ITEM 5 - FEES AND COMPENSATION
In addition to the information provided in Item 4 – Advisory Business, this section details our Firm’s services and
each service’s fees and compensation arrangement. The Client and Callahan Capital Management, Inc.’s

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Investment Advisory Agreement will outline and agree upon the exact costs and other terms related to the
Client’s Accounts.

INVESTMENT MANAGEMENT FEE

Our Firm offers investment management services for an annual fee based on the amount of assets under
management. Our maximum annual fee is 1.00%
Our annual fee is reasonable in relation to (1) the services provided and (2) the fees charged by other investment
advisers offering similar services/programs.
Our annual fee is prorated and charged quarterly in advance based on the value of the Client’s assets under
management as of the close of business on the last business day of the previous quarter. Cash and cash
equivalents, including money market funds, are subject to the agreed-upon advisory fee. Clients should
understand that the advisory fees charged on these balances may exceed the returns provided by cash, cash
equivalents, or money market funds, especially in low-interest rate environments.
Our Firm retains complete discretion to negotiate fees and may waive or impose different fees on any Client.
The investment advisory fees will be deducted from your account and paid directly to our Firm by the qualified
Custodian(s) of your account. The Client will authorize your account's qualified Custodian(s) to deduct fees from
the account and pay such fees directly to our Firm. All account assets, transactions, and advisory fees will be
shown on the monthly or quarterly statements provided by the Custodian. You should review your account
statements received from the qualified Custodian(s) and verify that appropriate investment advisory fees are
being deducted. The qualified Custodian(s) will not verify the accuracy of the investment advisory fees deducted.
We may aggregate related Client accounts to calculate the advisory fee applicable to the Client. The investment
management agreement will outline the fee charged to a Client and any breakpoints based on the level of assets
managed. The fees are subject to change with prior written notice to the Client.
Our annual investment advisory fee may be higher than that of other investment advisers that offer similar
services and programs. In addition to our compensation, you may incur charges imposed at the mutual fund
level (e.g., advisory fees and other fund expenses).
Accounts initiated during a calendar quarter will have the first quarter of management fees waived. Accounts
terminated during a calendar quarter will be charged a prorated fee based on the days the Client account was
open during that quarter. Any prepaid, unearned fees will be refunded upon termination of any account.

LEGACY MANAGEMENT FEE

Managed legacy positions are included within our Firm’s standard investment management fee and are outlined
in the executed investment management agreement. Unmanaged legacy positions are excluded from the
management fee.

FINANCIAL PLANNING FEE

Financial planning services are included as part of our Firm’s standard advisory fees, eliminating the need for
separate charges for financial planning engagements. Detailed information regarding your specific fees can be
found in your investment advisory agreement.

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RETIREMENT PLAN SERVICE FEE

Retirement plan services are included as part of our Firm’s standard advisory fees, eliminating the need for
separate charges for retirement plan service engagements. Detailed information regarding your specific fees
can be found in your investment advisory agreement.

ADDITIONAL FEES & EXPENSES

In addition to the advisory fees paid to our Firm, Clients also incur certain charges imposed by other third parties,
such as broker-dealers, Custodians, trust companies, banks, and other financial institutions. These additional
charges include securities, transaction fees, custodial fees, fees charged by the SMA, ITPM, and Manager
charges imposed by a mutual fund or ETF (Exchange Traded Funds) in a Client’s account, as disclosed in the
fund’s prospectus (e.g., fund management fees and other fund expenses), deferred sales charges, odd-lot
differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage
accounts and securities transactions. Our brokerage practices are described at length in Item 12 below. Neither
our Firm nor its supervised persons accept commission compensation for selling securities or other investment
products. Further, we do not share any additional fees and expenses outlined above.
Our Firm’s investment strategies may include mutual and exchange-traded funds (“ETFs”). Our policy is to
purchase institutional share classes of those mutual funds selected for the Client’s portfolio. The institutional
share class generally has the lowest expense ratio. The expense ratio is the annual fee that all mutual funds or
ETFs charge their shareholders. It expresses the percentage of assets deducted each fiscal year for funds
expenses, including 12b-1 fees, management fees, administrative fees, operating costs, and all other asset-
based costs incurred by the fund. Some fund families offer different classes of the same fund, and one share
class may have a lower expense ratio than another. Mutual fund expense ratios are in addition to our fees; we
do not receive any portion of these charges. If an institutional share class is not available for the mutual fund
selected, the adviser will purchase the least expensive share class available for the mutual fund. As share classes
with lower expense ratios become available, we may use them in the Client’s portfolio or convert the existing
...

ITEM 7 - TYPES OF CLIENTS
Our Firm provides discretionary and non-discretionary investment management, financial planning, and
retirement services to for individuals, high-net-worth individuals and families, estates, trusts, retirement plans,
corporations, and charitable foundations.
For fee calculation purposes, unless instructed otherwise, we will automatically aggregate related client
accounts, a practice commonly known as "householding" portfolios. Householding may result in lower fees than
if each account were billed separately, as the combined value is used to determine the account size and the
corresponding annualized fee.
Our approach to householding considers the overall family dynamic and relationship. Additionally, if applicable,
and as noted in Appendix B of the Investment Management Agreement, legacy positions may be excluded from
the fee calculation.
Clients must execute a written agreement with our Firm specifying the advisory services to establish a Client
arrangement with us.