South Texas Capital Advisors LLC

Item 5 – Fees and Compensation

We provide asset management services for a fee.

Either party may terminate the relationship with a thirty (30) day written notice. Upon termination of any
account, any prepaid fees that are in excess of the services performed will be promptly refunded to you.
Any fees that are due, but have not been paid, will be billed to you and are due immediately.

South Texas Capital Advisors        ADV Part 2                June 2026                                  Page 6 of 19
                                                                                 © 2026 Red Oak Compliance Solutions LLC

Asset Management Fee Schedule
We have a preferred minimum account size of $1,000,000 for our direct investment management clients
which may be reached by aggregating accounts. However, there may be occasions when the Adviser
accepts smaller accounts, which is determined on a case by case basis. The fee charged is based upon the
amount of money you invest. Multiple accounts of immediately-related family members, at the same
mailing address, may be considered one consolidated account for billing purposes. Fees are charged
quarterly, in advance. Payments are due and will be assessed on the last day of each quarter, based on
the ending balance of the account under management for the preceding quarter. All fees are negotiable
based upon the complexity of your financial situation and your individual circumstances. However, fees
for asset management shall not exceed 2.50% nor be less than 1.00% of assets under management per
annum. The details of your fee shall be described in your advisory agreement.

No increase in the annual fee shall be effective without prior written notification to you. We believe our
advisory fee is reasonable considering the fees charged by other investment advisers offering similar
services/programs.
We believe our advisory fee is reasonable considering the fees charged by other investment advisers
offering similar services/programs.
Your account at the custodian may also be charged for certain additional assets managed for you by us
but not held by the custodian (i.e. variable annuities, mutual funds, 401(k)s).

The fees we charge can be deducted directly from your account at the custodian. We will instruct the
custodian to deduct the fees from your account at the end of the quarter. This fee will show up as a
deduction on your following quarterly account statement from the custodian.

Third Party Fees
Our fees do not include brokerage commissions, transaction fees, and other related costs and expenses.
You may incur certain charges imposed by custodians and other third parties. These include fees charged
by managers, custodial fees, 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. Mutual
funds, money market funds and exchange-traded funds (ETFs) also charge internal management fees,
which are disclosed in the fund’s prospectus. These fees may include, but are not limited to, a
management fee, upfront sales charges, and other fund expenses. Certain strategies offered by us may
involve investment in mutual funds and/or ETFs. Load and no load mutual funds may pay annual
distribution charges, sometimes referred to as “12(b)(1) fees”. These 12(b)(1) fees come from fund assets,
and thus indirectly from clients’ assets. We do not receive any compensation from these fees. All of these
fees are in addition to the management fee you pay us. You should review all fees charged to fully
understand the total amount of fees you will pay. Services similar to those offered by us may be available
elsewhere for more or less than the amounts we charge. Our brokerage practices are discussed in more
detail under Item 12 – Brokerage Practices.

South Texas Capital Advisors        ADV Part 2               June 2026                                  Page 7 of 19
                                                                                © 2026 Red Oak Compliance Solutions LLC

Item 6 – Performance Based Fee and Side by Side Management

Some clients may prefer a Performance-Based Fee rather than an Asset Management Fee. We may enter
into this fee arrangement with the client as permitted by applicable regulations. To qualify for a
Performance-Based Fee arrangement, the client must be considered a “Qualified Client”. A Qualified
Client must satisfy one of the following tests:

    •         Assets Under Management (AUM) Test: a natural person or company who at the time of
              entering into such agreement has at least $1,000,000 under the management of the
              investment adviser.

    •         Net Worth Test: a natural person or company who the adviser reasonably believes at the time
              of entering into the contract: (A) has a net worth of jointly with his or her spouse of more
              than $2,100,000 excluding the value of the client’s primary residence; or (B) is a qualified
              purchaser as defined in the Investment Company Act of 1940.

    •         Bona Fide Employee Test: a natural person who at the time of entering into the contract is:
              (A) An executive officer, director, trustee, general partner, or person serving in similar
              capacity of the investment adviser; or (B) An employee of the investment adviser (other than
              an employee performing solely clerical, secretarial, or administrative functions with regard to
              the investment adviser), who has participated in the adviser’ investment activities for at least
              12 months.

Under a Performance-Based Fee arrangement, we may charge fees of up to 25% of the account’s net
profits generated per calendar quarter provided that such amount is only applied to the portion of the
profits that exceeds any cumulative gains. The fee is calculated and charged on a quarterly basis in arrears
...