Ascent Capital Partners LLC

Item 5 – Fees and Compensation
The following paragraphs detail the standard fee structure and compensation methodology for
services provided by the Advisor and is not inclusive of any potential additional fees as outlined

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in certain services in Item 4 above. Each Client engaging the Advisor for services described herein
shall be required to enter into a written agreement with the Advisor.

A. Fees for Advisory Services
SMA Investment Management Services

Ascent’s fee for SMA advisory and portfolio management services (“IA Fee”) is based on a
percentage of the Client’s assets under management, as indicated in the fee schedules below.
Except as discussed below in Item 6, Ascent does not charge Client’s performance-based fees or
other fees based on share of capital gains or capital appreciation.

IA Fees are paid quarterly in advance pursuant to the terms of the IMA. IA Fees are based on the
market value of assets under management at the end of the prior calendar quarter. IA Fees are based
on the following standard fee schedule:

                Assets Under Management ($)           Annual Rate (%)

                $0 to $500,000                              1.50%

                $500,001 to $1,000,000                      1.25%

                $1,000,001 to $3,000,000                    1.15%

                $3,000,001 to $5,000,000                    1.00%

                $5,000,001 to $10,000,000                   0.80%

                $10,000,001 to $20,000,000                  0.60%

                $20,000,001 to $50,000,000                  0.50%

                $50,000,001 and Up                        Negotiable

The IA Fee in the first quarter of service is prorated from the inception date of the account(s) to the
end of the first quarter. Fees may be negotiable at the discretion of the Advisor. The Client’s IA Fees
will take into consideration the aggregate assets under management with Advisor as of the last day
of a calendar quarter. All securities held in accounts managed by Ascent will be independently
valued by the designated Custodian. Ascent will not have the authority or responsibility to value
portfolio securities.

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For fee-based structured variable annuities and life insurance, Ascent charges a maximum
investment management fee of 1.25%. This fee is negotiable based on the amount of assets under
management with Ascent. The Client may direct the fee to be withdrawn from the fee-based variable
annuity or a different account managed by Ascent. Certain fee-based variable annuities carriers only
allow fee billing in arrears. Therefore, the fee collection schedule will differ from carrier to carrier.
Ascent will disclose the fee collection schedule to each Client when the Client agreement is signed.
Third Party-Fees
Ascent’s IA Fee is exclusive of, and in addition to, any Third-Party advisor’s fees, brokerage fees,
transaction fees, and other related costs and expenses, which may be incurred by the Client.
However, the Advisor shall not receive any portion of these commissions, fees, and costs. The fees
charged by the Third-Party Advisor, including fees for use of the Amplify Platform and Pontera
Accounts, as discussed in more detail below, will be in the third-party advisor’s Client agreement.
        Amplify Platform

        Prior to the use of the Amplify Platform, Ascent Client will execute documents
        acknowledging both Ascent’s intent to use of the Amplify Platform and disclosure relating
        to any and all additional fees such Client may bear in addition to the fees associated with
        Ascent’s the advisory services provided to the Client, as described in the IA Fee schedule
        above.

        Pontera Accounts (Formerly FeeX)

        Pontera Account Clients are charged a flat fee of 0.75% of assets under management, paid
        quarterly in advance, and includes any and all fees charged directly by Pontera. Such fees
        will be assessed and billed quarterly, and the exact amount charged is determined by the
        Pontera account’s AUM as of the last day of the quarter. In either case, if the Adviser only
        manages your assets for part of a quarter, the charge will be prorated. IA Fees are generally
        directly debited from a Client’s Pontera account, except for 401(k)’s as it is impossible to
        directly debit the fees from these accounts. As such, a Client may choose to have such fees
        withdrawn from other Ascent Managed SMA taxable account or have the fees billed
        directly to the Client. Accounts initiated or terminated during a calendar quarter will be
        charged a pro-rated fee based on the amount of time the account was open during the billing
        period. An IMA granting the advisor discretion over a Client’s Pontera account may be
        terminated with written notice at least 15 calendar days in advance. Since fees are paid in
        advance, a Client may be entitled to receive a rebate upon termination of the account.

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Alternative Investments

The Advisor may recommend a Client to invest in alternative investments. Alternative investments
have their own unique fee structure, which may be in addition to Ascent’s IA Fees, and fees may
be different for each such investment, or for different share classes of the same investment. In
addition, such investments generally bear many additional fees, including, but not limited to,
accounting services, compliance costs, startup costs, tax preparation, audit, and other fees and
costs. Clients are therefore required to carefully review the private placement memorandum for
...

Item 7 – Types of Clients
Ascent offers investment advisory services to Clients as described in more detail in Item 4, above.

Minimum account sizes will vary per Fund. Ascent generally imposes a $2.5 million SMA
minimum that can be reduced or waived on Advisor’s discretion.