Lummis Asset Management LP

5. Fees and Compensation

a. For investment portfolio management services, the fee schedule is as follows:

For the portion of the portfolio invested in equities and cash:
The annual fee is:      1.00% on the first $2,000,000
                        0.875% on the next $2,000,000
                        0.750% of the next $2,000,000
                        0.50% on the remaining balance of the equity’s portfolio

For the portion of the portfolio invested in fixed income securities (i.e. bonds):
The annual fee is:      0.50% on the first $2,000,000
                        0.375% on the remaining balance of the fixed income portfolio

For the portion of the portfolio invested in mutual funds:
The annual fee is a flat .50%

Fees are billed at the end of each quarter and are due when the bill is received. Most clients choose to
have us directly deduct the fees from their brokerage account, but they do have the option of paying by
check if preferred.

All Lummis Asset Management, L.P. fess are negotiable.

In addition to management fees, clients are responsible for transactions fees charged by the companies
through which trades are placed. Mutual funds may also charge their own management fees in addition
to those charged by Lummis Asset Management, L.P.

b. Investment planning services that are not part of portfolio management are billed at $175 per hour.
These fees are due when billed.

7. Types of Clients We Serve

Our clients are fairly evenly divided between individuals, high net-worth individuals, charitable
organizations, and corporations or other businesses with a minimum of $1,000,000 to invest and
individuals with less than that to invest. All of our clients tend to be conservative investors who
appreciate our disciplined investment strategy aimed at preserving their capital and growing it over the
long-term.

In addition, we provide investment planning consultation services to a banking institution on an hourly
basis.

8. Investment Philosophy, Strategies, and Associated Risks

Stocks

We view equities as the best means of compounding long-term wealth over time. Wealth is best
compounded by buying companies that are simple to understand, have pricing power, have strong
balance sheets, generate consistent cash flows, require little in the way of capital to maintain the
business, and earn attractive returns on capital. Management of these companies should treat
shareholders as partners and have a history of rationally allocating capital towards debt repayment,
acquisitions, dividends, and/or stock buybacks.

We are patient investors. Cash balances and portfolio turnover is a product of the abundance or scarcity
of investment opportunity. We are also tax sensitive. Taxes paid cannot be recouped. As a result,
portfolio turnover is typically very low. We have positions in portfolios that we have owned for a decade
or more.

We are size agnostic. We are willing to own small, mid, or large-cap stocks. Mature portfolios typically
hold 25-35 positions.

When initiating a position, we look for stocks that trade at a discount to fair value. The price paid should
offer us a margin of safety, that is, upside potential should far exceed downside potential. First and
foremost, we seek to avoid a permanent loss of capital.

Bonds

Due to their conservative nature, most of our clients’ own bonds to provide income and reduce the
volatility of their portfolios. We prefer to purchase investment grade bonds at par value or at a discount
so that we can capture price appreciation as the bonds age and their remaining life shortens. We
purchase corporate bonds, United States treasuries, and municipal bonds depending on the risk
adjusted yield. We use a laddered approach to building bond portfolios; that is, we ladder bonds by
maturity so that the bonds mature at various times. The average maturity of bond portfolios is typically
three to seven years.

We do not trade securities frequently. When we buy stocks, we are comfortable holding them for some
time (three to five years). When we buy bonds, we prefer to hold them to maturity.

We live in uncertain times. Risk remains elevated in all capital markets. The price of stocks and all other
investment products, including United States treasury bonds, will fluctuate. Our perception that a
security is undervalued could prove to be incorrect. Complex inter-relationships among larger economic
factors may also cause unexpected security price changes. Inflation also can cause the purchasing
power of a currency to fall, negatively impacting all securities priced in that currency.

Investing in securities is inherently risky. Investors could lose money. Lummis Asset Management, L.P.
cannot guarantee that any client will achieve their investment goals or that any client will receive a
return of its investment. Past investment performance of the firm and its clients does not guarantee
future results.

9. Legal and Disciplinary Events

There are no legal or disciplinary events, past or pending, to report.

10. Other Financial Activities and Affiliations

Lummis Asset Management, L.P. does not have any relationship with a broker-dealer, securities dealer,
investment advisor, investment planner, bank, accounting firm, law firm, insurance agency, pension
consultant, or real estate broker of any other institution that might represent a material conflict of
interest with clients.

Michael Kirk Wimberley is the COO at Lone Oak Trust Company. As the COO of a trust company since
January 3, 2023, he diligently oversees the operations department, dedicating 65 hours monthly during
trading hours and 25 hours outside, anticipating 50% of his yearly compensation to stem from the
business.