Federated Global Investment Management Corp

ITEM 5. FEES AND COMPENSATION

A. Our Advisory Fees

When we are providing Investment Supervisory Services and Model Portfolio Management Services to our clients,
Federated Global Investment Management Corp. typically charges and receives advisory fees determined as a percentage
of either assets under management or average net assets, depending upon the type of client or account. We also could
receive performance-based fees when rendering Investment Supervisory Services and Other Advisory Services to certain
accounts, such as, for example, Pooled Investment Vehicles. Managing accounts for performance-based fees creates
various conflicts of interest for us and our employees and supervised persons. (Please refer to “Performance-Based Fees
and Side by Side Management” in Item 6 of this brochure for a discussion of these conflicts of interest.)

Our fees also are negotiable and can vary based on investment style and other factors. (Please refer to “Negotiation and
Modification of Fees” in Item 5 of this brochure for further information.)

Except when we specifically contract with a client to receive a performance-based fee, our investment management
agreements do not provide for us to receive compensation on the basis of a share of capital gains upon or capital
appreciation of the assets or any portion of the assets of a client.

The following describes in more detail Federated Global Investment Management Corp.’s fees and how fees are
charged. To the extent that our basic fee schedules vary depending upon the type of service we are providing or the type
of client receiving the service, such variations also are discussed below.

                      1.   Advisory Fee Information for Separate Accounts, Managed Accounts, and Model
                           Portfolio Management Services

This section sets forth Federated Global Investment Management Corp.’s basic fee schedules for Separate Accounts,
Managed Accounts, and Model Portfolio Management Services. We typically charge asset-based fees, which are
determined as a percentage of assets under management (AUM). Our fee schedules can provide for “breakpoints” at
which the percentage is reduced if AUM exceeds certain agreed upon amounts.

Federated Global Investment Management Corp.’s compensation for Managed Accounts could be higher or lower than
our compensation for Separate Accounts. While our compensation for Model Portfolio Management Services could be
higher or lower than our compensation for Separate Accounts or for Managed Accounts, in certain cases, given the
involvement of an Overlay Manager and the nature of the services that we provide, our compensation for providing
Model Portfolio Management Services could be lower than our compensation for Separate Accounts and generally is
lower than our compensation for Managed Accounts. Certain Model Portfolio Management Services are made available
to Overlay Managers for no separate advisory fee.

More specific information regarding the fee arrangements applicable to Separate Accounts, Managed Accounts, and
Model Portfolio Management Services follows our basic fee schedules.

Our Basic Fee Schedules --

Separate Accounts

Federated Global Investment Management Corp.’s basic fee schedules for Separate Accounts are as follows:

International Equity Accounts:
70 basis points - first $25 million in AUM
65 basis points - over $25 million to $50 million in AUM
55 basis points - over $50 million to $100 million in AUM
45 basis points - over $100 million in AUM

Large Cap Accounts:
55 basis points - first $25 million in AUM
45 basis points - over $25 million to $50 million in AUM
35 basis points - over $50 million to $100 million in AUM
30 basis points - over $100 million in AUM

Managed Accounts and Model Portfolio Management Services

Federated Global Investment Management Corp.’s basic fee schedules for Managed Accounts and Model Portfolio
Management Services are as follows:

Large Cap Accounts; All Cap Value Accounts; Balanced Accounts:
70 basis points - first $5 million in AUM
60 basis points - over $5 million to $25 million in AUM
50 basis points - over $25 million to $50 million in AUM
40 basis points - over $50 million to $100 million in AUM
35 basis points - over $100 million in AUM

International Equity Accounts:
75 basis points - first $5 million in AUM
65 basis points - over $5 million to $25 million in AUM
55 basis points - over $25 million to $50 million in AUM
45 basis points - over $50 million to $100 million in AUM
40 basis points - over $100 million in AUM

Separate Accounts

For certain of the investment strategies noted above where our basic fee schedule is an asset-based fee schedule based
on a percentage of assets under management, we may be willing to accept a performance-based fee, which generally
would be calculated as a percentage of excess performance above certain levels and described in the investment
management agreement with our client, or a combination of an asset-based fee and a performance-based fee.
Performance-based fees can only be charged to qualified clients as and when permitted under Section 205 of the
Advisers Act and SEC Rule 205-3 promulgated under the Advisers Act. (Please refer to “Negotiation and Modification
of Fees” in Item 5 of this brochure for additional information on the negotiability of our fees. Also, please refer to
“Performance-Based Fees and Side by Side Management” in Item 6 of this brochure for a discussion of the conflicts of
interest raised by performance-based fees.)

Federated Global Investment Management Corp.’s fees can either be payable in arrears at or after the end of each
quarter (in which case they are not refundable) or payable in advance of the quarter in which such services are to be
rendered. The value of the client’s AUM is determined as and when provided in the client’s investment management
agreement with us, or as otherwise agreed with the client. If paid in advance, our fees typically will be refunded on a pro-
...

ITEM 7. TYPES OF CLIENTS

A. Types of Clients

Federated Global Investment Management Corp. generally provides investment advisory services to:

    •    Individuals;
    •    High net worth individuals;
    •    Corporations, business entities and other institutional investors;
    •    Banks, thrift institutions and other financial institutions;
    •    Investment Companies;
    •    Private, federal, state or government pension and profit sharing plans, including pension plans subject to the
         Employee Retirement Income Security Act of 1974 (ERISA);
    •    Trusts (including group trusts);
    •    Estates;
    •    Charitable foundations and organizations;
    •    Federal, state and municipal government entities;

    •    Foreign accounts; and
    •    Collective and other Pooled Investment Vehicles.

(Please refer to “The Types of Accounts/Products We Manage” in Item 4 of this brochure for further information on
the Investment Companies and Pooled Investment Vehicles to which we provide investment advisory services.)

We also manage, from time to time, Proprietary Accounts. The clients, account holders, shareholders or investors in
these Proprietary Accounts can include:

    •    Federated Global Investment Management Corp.;
    •    Another Federated Advisory Company;
    •    Another one of our affiliates; or
    •    Employees of Federated Global Investment Management Corp. or our affiliates.

(Please refer to “The Types of Accounts/Products We Manage” in Item 4 of this brochure for further information on
the Proprietary Accounts to which we provide investment advice.) Advising Proprietary Accounts raises various conflicts
of interest for us and our employees and supervised persons. (Please refer to “Conflicts of Interest Relating to
Proprietary Accounts” in Item 6 of this brochure for a discussion of these conflicts of interest.)

B. Requirements for Accounts

Federated Global Investment Management Corp. requires clients to enter into an investment management agreement.
Our investment management agreements contain grants of authority from our clients that allow us to manage client
assets and, in certain cases, we can request clients to execute and deliver a separate, stand-alone power of attorney.
Except in the case of a dual contract or unbundled Managed Account Program, Managed Account clients typically will
not enter into an investment management agreement directly with us. In that case, Managed Account clients will enter
into investment management and/or other agreements with the Sponsors or Platform Providers for the Managed
Account Program.

Federated Global Investment Management Corp.’s target minimum account sizes are as follows:

Our target minimum account size for Separate Accounts other than Managed Account Program accounts is $20 million.
For Separate Accounts located outside of the U.S., our target minimum account size is $25 million. For Separate
Accounts managed in accordance with our Kaufmann Accounts investment strategy, our target minimum account size is
$100 million for large cap accounts and $25 million for other accounts.

Our target minimum account size for Managed Account Program accounts is $100,000.

Smaller accounts are encouraged to utilize Investment Companies managed by Federated Global Investment
Management Corp. or other Federated Advisory Companies that meet the objectives of the client.

Certain asset classes can require larger account minimums to seek proper diversification. The minimum account sizes for
Managed Account Programs also could differ based on the requirements of the Program Sponsors, Platform Providers
or Overlay Managers.

Federated Global Investment Management Corp. reserves the right to modify or waive any of our target minimum
account sizes.

Federated Global Investment Management Corp. can request clients to provide proof of authority, directed trading
letters, qualified purchaser or accredited investor letters/certifications, or other information to allow us to manage client
assets.

We provide investment advisory services for our Managed Account and other clients in accordance with the
performance standards and limitations of liability as discussed in this brochure. (Please refer to “Standard of Care” in
Item 4 of this brochure for further information.)

Federated Global Investment Management Corp. also can be restricted by the securities laws of jurisdictions outside of
the U.S. from managing the assets of certain clients located in such jurisdictions.