Sarofim Trust Co LTA

Item 5 – Fees and Compensation
Advisory Service Fees

If you open an account at Sarofim Trust Co., 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 Trust Co.’s investment
management services are based upon the valuation of securities and investments provided by
Sarofim Trust Co.’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 Trust Co. 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)

Sarofim Trust Co. Part 2A of Form ADV: Firm Brochure                                Page 10 of 37

        Fees for the Sarofim Trust Co. Employee Benefit Investment Trust

Clients invested in the Sarofim Trust Co. Employee Benefit Investment Trust are charged an
investment management fee that is computed daily based on the market value of the assets under
management in the trust and is deducted from trust assets quarterly at an annual rate of 0.50%, or
50 basis points. This fee is established by the Declaration of Trust governing this group trust.

        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 Trust Co. 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 Trust Co. 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.

Trustee Fees

In addition to advisory service fees, a trust client of Sarofim Trust Co. incurs a trustee fee. The
decision to charge a trustee fee and the determination of the amount are made on a case-by-case
basis.

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 at 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

Sarofim Trust Co. Part 2A of Form ADV: Firm Brochure                        Page 11 of 37

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 advisory clients may
direct their custodians to deduct Sarofim Trust Co.’s fees from the assets in their account.
Alternatively, advisory clients may choose not to have the fees deducted from their accounts and
...

Item 7 – Types of Clients
Sarofim Trust Co. serves as an investment adviser for a broad range of clients 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 and otherwise on a case-by-case basis.

Sarofim Trust Co. Part 2A of Form ADV: Firm Brochure                       Page 14 of 37