Trust Advisors Inc

Fees and Compensation
TAI is customarily compensated on the basis of fees calculated as a percentage of assets under
management. TAI’s fee ranges from 0.25% to 1.50% of assets under management. Given the
unique nature of TAI’s business, TAI’s fee is consolidated to include its investment advisory
services and recordkeeping services. All such fees are subject to negotiation with the respective
Clients.

TAI’s fees are assessed and payable monthly in advance. In the event that a Client chooses to
cancel their advisory agreement with TAI before the end of a billing period, any prepaid fees will
be prorated through the end of the period and refunded to the client.

Sub-advisory fees of LCG Associates, Inc. and certain administrative and recordkeeping expenses
associated with TAI’s investment advisory services to its clients will generally be paid by TAI out
of its fees. However, custodial fees, brokerage fees and third-party investment management fees,
other than those due LCG Associates, Inc., are paid directly by each Client on behalf of the trust
accounts. TAI does not receive any fee or commission from the sale of investment products that it
recommends to its clients, nor does TAI participate in wrap fee programs.

No Performance-Based Fees
TAI’s fees are based on the value of portfolio assets at the end of each calendar month. TAI does
not receive any fees or other compensation based upon the investment performance of accounts.

Types of Clients TAI Serves
TAI provides investment management services to Trustees retained by SCI to manage preneed
contracts, cemetery perpetual care and prepaid cemetery merchandise trust assets.

Methods of Analysis, Investment Strategies and Risk of Loss
TAI’s management team possesses experience in traditional portfolio management, and retains a
sub-advisor with similar expertise. Through TAI and its sub-advisor, various methods of
investment analysis are employed to assist in formulating investment strategies. Broadly speaking,
these methods include fundamental, technical, quantitative and qualitative analysis.

TAI’s primary activities involve recommending asset classes and investment managers and other
service providers to its clients. The analysis undertaken is primarily based upon asset allocation
theory, investment manager selection and due diligence, as well as performance monitoring.

SCI is subject to extensive state regulation. Generally, SCI has assumed all risk of loss on the trust
assets by entering into the contracts, described above, that commit SCI to future performance at

set price levels. However, in certain circumstances, gains or losses may be realized by SCI’s
contractual counterparties. TAI’s overall investment approach is geared toward generating strong
long-term investment returns without assuming undue risk to provide for SCI’s future contractual
performance, while ensuring that management of the preneed contracts, cemetery perpetual care
and prepaid cemetery merchandise trust assets are in compliance with state laws. TAI’s approach
is conservative in nature, however, risk is inherent in any investment program and, as a result, the
investment returns in trust assets will fluctuate and accounts may lose value.