Financial Trust Asset Management Chartered

Item 5 Fees and Compensation
The following is a summary of the annual fees for our various services:

        First $2,000,000                 1.25%
        $2,000,000 to $5,000,000         1.00%
        Over $5,000,000                  Negotiable

The annual management fee for clients with accounts at Charles Schwab is billed monthly in arrears and is based upon
the value of the account including accrued interest at month end. This fee is prorated for flows during the billing period
of $500 or greater into or out of the account. Client understands he/she will receive a copy of the invoice showing the
amount of the fee, the formula used to calculate the fee, the value of the assets on which the fee was based, and the
time period covered by the fee, on a monthly basis. For clients with multiple accounts at the same custodian, where
there is insufficient cash for the quarterly fee in one account, fees may be taken from another account. For client
accounts held at Schwab, Financial Trust manages the billing and will consolidate related family accounts held at Schwab
for purposes of achieving the minimum account size and determining the annual fee.

The annual management fee for clients with accounts at Goldman Sachs is billed monthly in arrears and is based upon
the average daily value of the account. Goldman Sachs calculates the monthly management fee and remits the payment
to Financial Trust Asset Management. Fees are shown on Goldman Sachs’s monthly statements and monthly Billing
notices in their electronic file cabinet on the Goldman Sachs website. Goldman Sachs will send emails regarding monthly
statements and Billing notices as they become available. When opening an account, fees are prorated for the number of
days the account was established. Fees will be debited from the account in accordance with the client authorization in
the Agreement. As Goldman Sachs manages the billing for clients’ accounts custodied at Goldman Sachs, accounts are
not aggregated with other family accounts custodied at Goldman Sachs or any accounts held with another custodian,
such as Schwab.

The annual management fee for clients with accounts at Pershing is billed monthly in arrears and is based upon the
average daily value of the account. Pershing calculates the monthly management fee and remits the payment to FTAM
Trust Asset Management. Fees are shown on Pershing’s monthly statements and monthly Billing notices in their
electronic file cabinet on the Pershing website. Pershing will send emails regarding monthly statements and Billing
notices as they become available. When opening an account, fees are prorated for the number of days the account was
established. Fees will be debited from the account in accordance with the client authorization in the Agreement. As
Pershing manages the billing for clients’ accounts custodied at Pershing, accounts are not aggregated with other family
accounts custodied at Pershing or any accounts held with another custodian, such as Schwab.

As discussed above, our advisory fee for managing your account, including your variable annuity contract, will be calculated
as a percentage of the total AUM. The advisory fee is based on the value of the investment sub-accounts within your
variable annuity. The value of your variable annuity contract will be included in the AUM calculation for purposes of
determining the advisory fee. Please be aware that your variable annuity contract has its own separate fees and charges,
such as mortality and expense charges, administrative fees, and fund expenses, which will reduce the value of your
contract. These fees are in addition to the advisory fee you pay to us. Our advisory fee, combined with the fees and charges
within your variable annuity contract, will impact the overall cost of your investment. You are responsible for paying the
advisory fee directly to us. This fee is separate from any commissions you may have paid when purchasing the variable
annuity contract. The advisory fee covers the ongoing investment management and monitoring of your variable annuity and
other assets as outlined in our advisory agreement.

No portion of the Advisory Fee shall be based on capital gains or capital appreciation of the Assets, and no increase in
the Advisory Fee shall be effective without prior written notification to you.

In addition to our Advisory Fee, you may also incur certain charges imposed by unaffiliated third parties. Such charges
include, but are not limited to, transaction charges, custodial fees, charges imposed directly by a mutual fund, index
fund, or exchange traded fund purchased for the Account which shall be disclosed in the fund’s prospectus (e.g., fund
management fees and other fund expenses), fees imposed by variable annuity providers and disclosed in the annuity
contract, certain deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and
other fees and taxes on brokerage accounts and securities transactions.

Financial Trust reserves the right to negotiate fees. A client’s fee may be different than the fee schedule listed above. Pre-
existing advisory clients are subject to the minimum account requirements and advisory fees in effect at the time the
client entered into the advisory relationship. Discounts, not generally available to our advisory clients, may be offered to
family members and friends of supervised persons of our firm. Financial Trust reserves the right to charge any of the
related accounts for fees for the other related account(s) based on fund availability, unless otherwise documented.
Financial Trust will generally deduct fees from client accounts, when clients have provided our firm written authority to
do so. However, our firm has accepted some client accounts where the client is invoiced and pays our fees. Clients should
be aware that the investment management fee does not include transfer fees, or margin interest and any commissions and
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Item 7       Types of Clients

Financial Trust provides advisory services to the following types of clients:
    •    Pension and profit-sharing plans (other than plan participants)
    •    Charitable organizations
    •    Corporations or other businesses not listed above
    •    Other Investment Advisers
    •    Individuals (other than high net worth individuals)
    •    High net worth individuals

In general, we require a minimum of $1,000,000 to open and maintain an advisory account. At our discretion, we
may waive this minimum account size. For example, advisors using Financial Trust’s strategies on Unified Managed
Account platforms, account minimums may vary.