Sather Financial Group Inc

5. Fees & Compensation

Sather Financial Group earns its compensation by providing investment advisory and financial planning
services. Fees are earned for a percentage of assets under management. Investment management services
fees are as follows:
                       Assets Under Management                    Annual Fee
                       $0      -      $1,000,000                  1.00%
                       $1,000,001     - $3,000,000                0.80%
                       $3,000,001 - $5,000,000                    0.60%
                       $5,000,000 +                               0.40%

This is a tiered fee schedule such that an account of $1 million is at 1.00% or $10,000 per year. The first
$1 million will always be charged 1%. A $3 million account would be: ($1 million x 1%) + ($2 million x
.8%) or $26,000 total. An annual fee of $26,000 divided by $3 million = .8667% per year on average. A
$5 million account will have an average fee of .76%.

A client who hires Sather Financial Group for investment management services may also receive, on an as-
requested basis, financial planning and strategy services as part of a broader wealth management program.
The minimum relationship size for investment management services is generally $1 million. Depending upon
the size of the relationship, fees may be negotiable.

Obviously, Sather Financial Group, Inc. does not work for free. As such, every client or potential client,
needs to evaluate the value proposition provided by our services. Any person moving assets to Sather
Financial Group, Inc. may incur more in fees than if they chose other options. This is true whether the assets
being transferred in are from an IRA, 401(k), taxable account, or any other account. However, this allows us
to build a customized portfolio for that client and also provides a variety of financial planning and strategy
services, additional to simply managing the assets. If a person moves assets to Sather Financial for
management, the fee they will incur may be higher or lower than other services or by simply managing the
assets themselves. Although fees are a very important aspect, all clients must determine if the overall
package of services offers a reasonable opportunity to meet their goals.

Inherently, a firm that charges a fee based on assets under management has an incentive to increase assets
under management. Sather Financial recognizes there is a conflict with any decision that could decrease
assets under management. While it is not a perfect system, we feel it is the best way to align our interests

                 120 E. Constitution St., Victoria, Texas 77901

                               Sather Financial Group, Inc.
                               Private Wealth Management
with our clients’. Furthermore, we are still required as fiduciaries to make decisions in the best interest of our
clients.

   •   Other Fees and Expenses

On rare occasions, we offer financial planning services on an hourly basis to people who do not have an asset
management relationship with Sather Financial. The typical fee for services of this nature is $350 per hour.
We prefer not to do this simply because we have no control over how the given advice is ultimately
implemented, if at all.

In general, we don’t charge an hourly fee to our clients that have an on-going asset management relationship
with us.

On a case-by-case basis, we will work on specific, limited engagement projects for a negotiated fixed fee.

In addition to the management fee for services, clients are also responsible for, but not limited to, trading
costs, commissions, brokerage fees, and mutual fund expenses. It is important that our clients understand and
see these fees. For this reason, they are separate from any fee received by Sather Financial. Since these fees
lower the total assets under management, it is in both Sather Financials’ best interest, as well as the clients’,
to keep these costs as low as reasonably possible.

Although we have positive relationships with the institutional arms of Charles Schwab and Interactive
Brokers (the brokerage firms), Nationwide (annuities), clients are free to execute trades through any
brokerage firm of their choosing. Again, our goal is to make the relationship as efficient as possible for our
clients. However, if a client directs trades or custody of securities through a different firm, trade execution
and pricing may be more expensive, less cohesive or less advantageous.

   •   Fee Payment

Generally, we bill our clients for services, on a monthly basis, in arrears. In general, our clients are notified
of what their assets under management are, as of the last trading day of the month. Based upon that figure,
and our fee schedule, we send our clients a statement that shows the fee calculation. Generally, around the
10th day of the next month we submit a fee payment request to the brokerage custodian to be paid. The
custodian will then deduct the fee from the client account(s) for payment to Sather Financial.

       6. Performance Fees and Consulting/Financial Planning Services

We do not accept performance-based fees or other fees based on a share of capital gains on or capital
appreciation of the assets of a client. Our experience is that the typical “performance-based pricing”
encourages greater risk taking than most clients are able to tolerate.

7. Types of Clients

We generally provide advisory services to the following types of clients: individuals, high net worth families,
corporations, retirement plans, collective investment trusts, and charitable foundations. Our stated minimum
relationship size is $1 million. and our average family relationship is more than $1.7 million.

                 120 E. Constitution St., Victoria, Texas 77901

                            Sather Financial Group, Inc.
                            Private Wealth Management