Vaughan Nelson Investment Management LP

Item 5 – Fees and Compensation

Vaughan Nelson’s fees for investment advisory services are generally based on an annual rate, as
indicated for the strategies listed below, and charged as a percentage of the total market value of
assets managed or advised at each calendar month or quarter end.

Vaughan Nelson also enters into investment advisory contracts which stipulate a base fee, as a
percentage of assets, and an incentive fee based upon investment returns (See Item 6 –
Performance Based Fees and Side-By-Side Management).

In certain circumstances, client funds will be invested in mutual funds. Affiliated mutual funds
advised/sub-advised by Vaughan Nelson are used to provide efficient investment in the Firm’s
strategies (particularly for smaller clients) while unaffiliated funds are primarily used to provide
broader asset class / geographical exposures. In addition, client funds, in certain circumstances,
will be invested in Exchange Traded Funds (“ETFs”) which represent either the strategy in which to
be invested, a strategy’s benchmark (to remain more fully invested), or another avenue to provide
broader asset class / geographical exposure. Both mutual funds and ETFs are subject to their own
fees and expenses which are reflected in the net asset value of the security. The mutual fund / ETF
fees and expenses are in addition to any explicit fee charged by Vaughan Nelson. Consequently, for
purposes of calculating Vaughan Nelson’s management fee, the market value of mutual funds and
ETFs (including those advised/sub-advised by Vaughan Nelson for which the mutual fund or ETF
pays the Firm a fee; but excluding those ETFs representing a strategy’s benchmark) will be
deducted from the market value of a client’s account prior to the calculation of Vaughan Nelson’s
management fee.

Vaughan Nelson has negotiated fee schedules for certain clients which differ from those shown in
the schedules that follow.

Fees are normally payable in advance for each quarter. Clients can elect to either be billed directly
for our fees, or to authorize Vaughan Nelson to send bills directly to the custodian of a client’s
account for payment.

Accounts initiated or terminated during a calendar quarter will be charged a prorated fee. Upon
thirty (30) days written notice of termination, any prepaid, unearned fees will be promptly
refunded, and any earned, unpaid fees will be due and payable.

STRATEGY MANAGED

Equity

Small Cap Value
1.00% on the first               $ 25,000,000
.85% on the next                 $ 25,000,000
.75% on amounts over             $ 50,000,000

Value Opportunity (small/mid cap)
.85% on the first              $ 10,000,000
.75% on the next               $ 15,000,000
.70% on the next               $ 25,000,000
.65% on amounts over           $ 50,000,000

Select (concentrated large cap)

1.00% on the first                $ 25,000,000
.85% on the next                  $ 25,000,000
.75% on amounts over              $ 50,000,000

International

1.00% on the first                $ 25,000,000
.85% on the next                  $ 75,000,000
.80% on amounts over              $ 100,000,000

Emerging Markets

1.10% on the first                $ 25,000,000
1.00% on amounts over             $ 25,000,000

Global SMID
.90% on the first                 $   10,000,000
.85% on the next                  $   15,000,000
.80% on the next                  $   25,000,000
.75% on the next                  $   50,000,000
.65% on amounts over              $   100,000,000

Fixed Income

Core Fixed Income & Intermediate Fixed Income
.35% on the first              $ 25,000,000
.25% on the next               $ 75,000,000
.20% on amounts over           $ 100,000,000

Limited Maturity Fixed Income
.10% on the first             $ 25,000,000
.05% on the next              $ 150,000,000
.04% on amounts over          $ 175,000,000

Municipal Fixed Income
.35% on the first                 $ 25,000,000
.25% on amounts over              $ 25,000,000

Vaughan Nelson’s fees, as outlined above, are exclusive of brokerage commissions, transaction costs,
and other related costs and expenses which will be incurred by the client (See Item 12 – Brokerage
Practices for the factors considered in selecting or recommending broker-dealers for client
transactions and determining the reasonableness of broker compensation/commissions). However,
in the case of wrap programs, the sponsor’s program fee will include any commissions that would
otherwise be charged by the sponsor’s affiliated broker or another designated broker. Finally, the
client will incur custodial and/or consultant fees as stipulated within an agreement entered into by
the client and such parties.

Item 7 – Types of Clients

Vaughan Nelson provides portfolio management services to a broad spectrum of clients including
individuals, high net worth individuals, family offices, wrap platforms, corporations and corporate
pension and profit-sharing plans (ERISA), charitable institutions, foundations, endowments, state

and local entities, registered mutual funds (including sponsored mutual funds), exchange-traded
funds, private investment funds, collective investment trusts, foreign funds such as UCITS and
SICAVs, and other U.S. and international institutions.

For some clients (separate accounts, mutual funds, exchange-traded funds, collective investment
trusts, and wrap platforms), Vaughan Nelson’s portfolio management services are provided in a
sub-advisory capacity to the advisor who, in turn, has an investment management agreement with
the ultimate client.

Vaughan Nelson may provide investment advice to clients that have investment objectives that may
be similar to those of the Funds. These clients (including some of the Funds) may have portfolios
consisting of holdings substantially similar to those of the Funds and may be subject to different
holdings disclosure policies that provide for more frequent disclosure than under each Fund’s
policies and procedures. In some cases, such portfolio holdings are made publicly available daily.
These clients are not subject to the portfolio holdings disclosure policies and procedures of each of
the Funds and do not owe the Advisor, respective Subadvisor, or each of the Funds a duty of
confidentiality with respect to disclosure of their portfolio holdings.

Vaughan Nelson generally manages accounts in excess of $3 million.