Luther King Capital Management Corporation

ITEM 5 – FEES AND COMPENSATION

The following section describes how we are compensated for the investment advisory services that we
provide to our clients.

Separately Managed Portfolios

Under our investment management agreements for separately managed portfolios, we generally charge a
management fee at a specified annual percentage rate of each portfolio’s assets under management as
described below:

Strategy               Non-Institutional Portfolios                 Institutional Portfolios
Equity                 Equities and Cash Equivalents:               Equities and Cash Equivalents:
                       1.00% on the first $2 million                0.75% on the first $2 million
                       0.75% on the next $3 million                 0.50% on the next $73 million
                       0.50% on the next $70 million                0.35% on the next $75 million
                       0.35% over $75 million                       0.25% over $150 million

Small Cap, Small-      Equities and Cash Equivalents:               Equities and Cash Equivalents:
Mid Cap, and Mid       1.00% on the first $5 million                1.00% on the first $5 million
Cap                    0.75% on the next $5 million                 0.75% on the next $5 million
                       0.50% over $10 million                       0.50% over $10 million

Fixed Income           Fixed Income Securities and Cash             Fixed Income Securities and Cash
                       Equivalents:                                 Equivalents:
                       0.50% on the first $2 million                0.50% on the first $2 million
                       0.35% on the next $3 million                 0.35% on the next $3 million
                       0.25% over $5 million                        0.25% over $5 million

Balanced               Equities and Cash Equivalents:               Equities and Cash Equivalents:
                       1.00% on the first $2 million                0.75% on the first $2 million
                       0.75% on the next $3 million                 0.50% on the next $73 million
                       0.50% on the next $70 million                0.35% on the next $75 million
                       0.35% over $75 million                       0.25% over $150 million

                       Fixed Income Securities:                     Fixed Income Securities:
                       0.50% on the first $2 million                0.50% on the first $2 million
                       0.35% on the next $3 million                 0.35% on the next $3 million
                       0.25% over $5 million                        0.25% over $5 million

International Equity    Equities and Cash Equivalents:               Equities and Cash Equivalents:
                        1.00% on the first $2 million                0.90% on the first $2 million
                        0.80% on the next $13 million                0.70% on the next $23 million
                        0.65% on the next $60 million                0.60% on the next $50 million
                        0.50% over $75 million                       0.45% over $75 million

We generally charge the following minimum annual management fees for separately managed portfolios:

        •        $20,000 – non-institutional equity, fixed income, balanced and international portfolios;
        •        $15,000 – institutional equity, fixed income and balanced portfolios;
        •        $18,000 – institutional international equity portfolios; and
        •        $30,000 – institutional and non-institutional small cap, small-mid and mid cap portfolios.

We generally consider institutional portfolios to include those portfolios managed for institutional clients
such as foundations, endowments, pension and profit sharing plans, government entities, charitable
organizations, certain business entities and similar clients. In our discretion, we may extend our
institutional portfolio fee schedules to non-institutional clients, such as high net worth individuals, trusts,
family limited partnerships and individual retirement accounts. We consolidate portfolios for clients and
related parties for purposes of calculating management fees and portfolio management fee minimums in
our discretion. We waive or reduce management fees, fee schedules, and portfolio and management fee
minimums in our discretion. We generally waive or reduce management fees and portfolio and
management fee minimums for portfolios in which we or our principals, affiliates, employees or related
persons have a direct or indirect beneficial interest. Our management fees may be adjusted, waived or
otherwise negotiated in our discretion and, therefore, certain clients have a different fee schedule than
those described above, which fee schedules may be lower or higher than those described above. In
addition, clients whose investment management agreements or investment advisory relationships we have
assumed or acquired from other investment advisory firms generally have a different fee schedule than
those described above, which fee schedules may be lower or higher than those described above.

Unless we agree otherwise, our investment management agreement generally provides that you must pay
management fees to us quarterly in advance. Our investment management agreements typically may be
terminated at any time by either party upon written notice to the other party. If your investment
management agreement is terminated prior to the end of a calendar quarter, we will calculate and refund
to you any unearned management fees paid in advance, prorated to the date of termination.

Our management fees for separately managed portfolios are generally based on our calculation of the fair
market value of assets in the portfolio as of the close of business on the last business day of the most
recent calendar quarter. When calculating management fees, we generally value equity securities for
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ITEM 7 – TYPES OF CLIENTS

We provide investment advisory services to individuals, trusts, estates, charitable organizations,
government entities, corporations and other business entities, foundations, endowments, pension and
profit sharing plans, registered investment companies, and private investment partnerships. Our
requirements for opening and maintaining a portfolio with us are summarized below.

Separately Managed Portfolios

We generally require the following minimum portfolio sizes for opening and maintaining separately
managed portfolios with us:

        •       $2,000,000 – equity, fixed income, balanced and international equity separately managed
                portfolios for institutional and non-institutional clients; and

        •       $3,000,000 – small cap, small-mid cap and mid cap separately managed portfolios for
                institutional and non-institutional clients.

We may waive these portfolio minimums for any client in our discretion. We typically consolidate
separately managed portfolios of clients and their related parties in our discretion to determine whether or
not our portfolio minimums are satisfied for a particular client.

LKCM Funds

The LKCM Funds require a minimum initial investment of $2,000, which may be waived by each Fund in
its discretion. Purchases and redemptions of shares of the LKCM Funds are subject to various
requirements as further described in the prospectus and statement of additional information for each Fund
filed with the Securities and Exchange Commission from time to time.

LKCM Partnerships

The LKCM Partnerships generally require limited partners to satisfy the following minimum initial
investment and/or capital commitment amounts and eligibility requirements:

        •       LKCM Investment Partnership, L.P. – generally requires an initial minimum investment
                of $250,000. The general partner may waive this minimum investment amount in its
                discretion. Limited partners must qualify as “accredited investors” and “qualified
                purchasers” or “knowledgeable employees” under applicable federal securities laws.

        •       LKCM Investment Partnership II, L.P. – generally requires an initial minimum
                investment of $250,000. The general partner may waive this minimum investment
                amount in its discretion. Limited partners must qualify as “accredited investors” and
                “qualified clients” or “knowledgeable employees” under applicable federal securities
                laws.

        •       LKCM Private Discipline (QP), L.P. – generally requires an initial minimum investment
                of $250,000. The general partner may waive this minimum investment amount in its
                discretion. Limited partners must qualify as “accredited investors” and “qualified
                purchasers” or “knowledgeable employees” under applicable federal securities laws.

        •       LKCM Private Discipline International, L.P. – generally requires an initial minimum
                investment of $250,000. The general partner may waive this minimum investment
                amount in its discretion. Limited partners must qualify as “accredited investors” and
                “qualified purchasers” or “knowledgeable employees” under applicable federal securities
                laws.

        •       LKCM Micro-Cap Partnership, L.P. – generally requires an initial minimum investment
                of $250,000. The general partner may waive this minimum investment amount in its
                discretion. Limited partners must qualify as “accredited investors” and “qualified
                purchasers” or “knowledgeable employees” under applicable federal securities laws.

        •       LKCM Headwater Investments I, L.P. – generally requires a minimum capital
                commitment of $250,000. The general partner may waive this minimum capital
                commitment in its discretion. Limited partners must qualify as “accredited investors”
                and “qualified purchasers” or “knowledgeable employees” under applicable federal
                securities laws.

        •       LKCM Headwater Investments II, L.P. – generally requires a minimum capital
                commitment of $250,000. The general partner may waive this minimum capital
                commitment in its discretion. Limited partners must qualify as “accredited investors”
                and “qualified purchasers” or “knowledgeable employees” under applicable federal
                securities laws.

        •        LKCM Headwater II Sidecar Partnership, L.P. – generally requires a minimum capital
                 commitment of $250,000. The general partner may waive this minimum capital
                 commitment in its discretion. Limited partners must qualify as “accredited investors”
                 and “qualified purchasers” or “knowledgeable employees” under applicable federal
                 securities laws.

        •        LKCM Headwater Investments III, L.P. – generally requires a minimum capital
                 commitment of $250,000. The general partner may waive this minimum capital
                 commitment in its discretion. Limited partners must qualify as “accredited investors”
                 and “qualified purchasers” or “knowledgeable employees” under applicable federal
                 securities laws.

        •        LKCM Headwater Investments IV, L.P. – generally requires a minimum capital
                 commitment of $250,000. The general partner may waive this minimum capital
                 commitment in its discretion. Limited partners must qualify as “accredited investors”
                 and “qualified purchasers” or “knowledgeable employees” under applicable federal
                 securities laws.

        •        LKCM International Equity, L.P. – generally requires an initial minimum investment of
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