Sarofim International Management Company LLC

Item 5 – Fees and Compensation
Advisory Service Fees

If you open an account at Sarofim International Management Company, the fee you will pay for
our advisory services is calculated according to one or more of the schedules presented below.
Fees are billed in three month rolling periods, after the end of each such period, and are based on
the market value of the assets at the end of the last day of such period on which the New York
Stock Exchange is open. Asset-based advisory fees charged for the provision of Sarofim
International Management Company’s investment management services are based upon the
valuation of securities and investments provided by Sarofim International Management
Company’s pricing services, which are reflected on its internally generated portfolio appraisal
statements. These statements may show different market values for particular investments than
what is reflected on a client’s custodial statement. Sarofim International Management Company
maintains policies and procedures regarding the valuation of securities and investments held in
client accounts.

         Equity Fees: Large Capitalization Equity Product, Concentrated Equity Product,
                      Equity Income Product, and the Equity Portfolios of Balanced
                      Accounts

     Market Value of Equities                Rate

      First   $2,000,000 is billed at       0.75% (or 75 basis points) per year
                                            (i.e., 0.1875% per quarter)

      Next $18,000,000 is billed at         0.50% (or 50 basis points) per year
                                            (i.e., 0.1250% per quarter)

      Next $20,000,000 is billed at         0.40% (or 40 basis points) per year
                                            (i.e., 0.1000% per quarter)

      Next $20,000,000 is billed at         0.35% (or 35 basis points) per year
                                            (i.e., 0.0875% per quarter)

      Amounts over         $60,000,000 0.20% (or 20 basis points) per year
      are billed at                    (i.e., 0.0500% per quarter)

        Equity Fees: Global Equity Product and International Equity Product

     Market Value of Equities                Rate

      First   $50,000,000 is billed at      0.60% (or 60 basis points) per year
                                            (i.e., 0.15% per quarter)

      Next $50,000,000 is billed at         0.40% (or 40 basis points) per year
                                            (i.e., 0.1% per quarter)

      Amounts Over $100,000,000 0.30% (or 30 basis points) per year (i.e.
      are billed at             0.075% per quarter)

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        Fixed Income Fees

The fee for fixed income securities is 0.20%, (20 basis points) per year, or 0.05%, (5 basis
points) per quarter.

        Cash Fees

Our investment advisory agreements authorize Sarofim International Management Company to
bill cash positions in our portfolios at an annual rate of 0.20%, or 20 basis points. Cash assets
may be held temporarily in money market funds or other short-term interest-bearing
arrangements. If this is the case, such assets may also be subject to fees payable to the manager
of these funds in addition to the fees charged by Sarofim International Management Company.
Notwithstanding the above, we currently waive our fees on cash positions in our portfolios for all
clients; however, this should not be interpreted as a permanent waiver, and we reserve the right
to reinstitute the above-referenced cash position billing rate.

        Private Placement Program Fees

Our fee for clients participating in private placement transactions is 0.50% (or 50 bps) of a
participating client’s capital contributions to each investment until such investment is fully
liquidated or otherwise fully disposed of by client.

Our Billing Practices

For the purpose of computing fees, we may agree to treat managed assets in related accounts as if
all the assets were in one account. After the fee is computed in this way, it is divided among the
accounts involved, usually in proportion to the market value of each account. This grouping of
related accounts must be approved in advance by the firm, and approval is not assured.

We generally do not regard our fees as negotiable because we believe our fees are in the low end
of the range of fees in the industry for comparable services. However, in a few instances, the
firm in its sole discretion has granted (and may in the future grant) exceptions to the application
of our regular fee schedules when we believe there are highly unusual factors involved that
justify exceptional treatment. The firm attempts to ensure that other clients having similar
unusual factors are treated in a similar manner for fee purposes, but this cannot be assured. From
time to time, the firm will seek to determine if such unusual factors continue to justify deviations
from our regular fee schedule.

As mentioned earlier, the firm’s fees are billed quarterly, in arrears. Our clients may direct their
custodians to deduct Sarofim International Management Company’s fees from the assets in their
account. Alternatively, clients may choose not to have the fees deducted from their accounts and
may arrange to pay the fees by check or wire transfer. The firm does not accept advance fee
payments.

Third Party Fees You May Incur

Sarofim International Management Company does not provide custodial services, and we are not
affiliated with a brokerage firm. The firm’s brokerage practices are discussed in Item 12 of this
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brochure. The advisory service fee you pay to us does not include other fees or charges you may
incur in connection with your account at Sarofim International Management Company. The
...

Item 7 – Types of Clients
Sarofim International Management Company serves as an investment adviser for a broad range
of clients primarily based outside the United States, including but not limited to:

        Private employer pension and profit-sharing plans
        State and local government retirement systems
        Taft-Hartley union plans
        Employee savings and thrift plans
        Keogh plans
        Individuals—retirement accounts
        Individuals—taxable accounts
        Endowments, foundations, or other tax-exempt organizations
        Banks
        Trusts and estates
        Registered investment companies, i.e., mutual funds
        Insurance companies
        Insurance Company Separate Accounts
        Corporations and small businesses

We continue to seek new clients. Generally, the minimum dollar amount for new managed
accounts is $5 million, subject to the firm’s discretion. However, the minimum dollar amount
for new managed accounts in our Global Equity Product is $10 million, subject to the firm’s
discretion. The firm may waive these size requirements in its sole discretion if related accounts
are currently under management.

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