S&A Financial Services Inc

Item 5: Fees and Compensation

A. Fee Schedule

Investment Supervision and Management Fees

S&A will receive a fee for investment supervision and management of the Portfolio
based on the current market value of the Portfolio (including cash and equivalent items)
as follows:

                For accounts between                 Quarterly Percentage

               $500,000 and under                           .30%
               $500,001 - $1,000,000                        .25%
                Above $1,000,000                            .22%

Clients will be charged a quarterly fee percentage rate as shown in the above chart,
multiplied by the assets under management at the end of the prior quarter. The market
value of assets under management will be determined as reported by the Custodian.
Fees are assessed on all assets under management, including securities, cash and money
market balances. S&A’s fees are negotiable and may vary from the above schedule.
Lower fees for comparable services may be available from other sources.

Fees are billed quarterly in advance. New clients joining S&A during the quarter time
period will be charged a pro-rata fee that will cover the cost of services from the date the
assets were received into the Account through the end of the initial quarter. The fee for
those days will be added to the first full quarter fees. In subsequent quarters, they will
be charged under our normal quarterly fee process.

Clients separating from S&A will receive a refund of any unearned fees remaining for
the quarter. Either S&A or the Client may terminate the management agreement
immediately upon written notice to the other party. Upon termination, the Client is
responsible for monitoring the securities in the Account, and S&A will have no further
obligation to act or advise with respect to those assets.

Client authorizes the Custodian to deduct the advisory fees from Client’s Account and
pay to S&A. Unless otherwise agreed to, in writing, the Advisor shall debit the

Account(s) for its fee. Unless otherwise indicated, the only source of compensation to be
received by the Advisor shall come from the Account in accordance with the above fee
schedule.

Clients are encouraged to review their fee calculation for accuracy. The custodian does
not verify or review the fee calculation. The Custodian will send Client no less than a
quarterly statement showing all amounts paid from the Account including all
management fees paid by Custodian to S&A.

Clients joining S&A prior to 2007 may be under a former policy of paying fees in arrears.

In addition, some mutual fund assets deposited in the account may have been subject to
deferred sales charges and 12 (b) (1) fees and other mutual fund annual expenses as
described in the fund’s prospectus. Furthermore, some existing variable annuities may
be subject to trailing service fees, deferred sales charges, and mortality and expense fees.
These fees are independent of our fees and should be disclosed by the custodian or
contained in each fund’s prospectus. You should also note that fees for comparable
services vary and lower fees for comparable services may be available from other
sources.

Financial Planning Fees

Fixed Fees

Ongoing financial planning services are billed quarterly in arrears as a fixed fee. The
fee amount is negotiable and based on the level of services provided. The final fee
schedule will be included in the Financial Planning Agreement.

Hourly Fees

Project oriented financial planning services are billed on an hourly basis. The base
hourly fee rate for these services is $150 per hour. The fee rate is negotiable and the final
fee schedule will be attached to the Financial Planning Agreement. Fees are paid in
arrears upon completion.

B. Payment of Fees

Payment of Investment Supervision and Management Fees

Management fees are withdrawn directly from the client’s accounts with client written
authorization. Fees are paid quarterly in advance.

    You authorize us to debit your account quarterly for our fee. The independent qualified
    custodian holding your funds and securities will debit your account directly for the
    management fee and pay that fee to us.

    You will provide written authorization permitting the fees to be paid directly from your
    account held by the qualified custodian. Further, the qualified custodian agrees to
    deliver an account statement at least quarterly directly to you indicating all the amounts
    deducted from the account including our management fees. You are encouraged to
    review your account statements for accuracy.

    Payment of Financial Planning Fees

    Fixed Financial Planning fees are generally paid by credit card following the end of each
    quarter of service.

    Hourly Financial Planning fees are generally paid via check in arrears upon completion.

    C. Clients Are Responsible For Third Party Fees

    Supervision and management fees payable to us do not include all the fees you will pay
    when we purchase or sell securities for your Account(s). The following list of fees or
    expenses are what you pay directly to third parties, whether a security is being
    purchased, sold or held in your Account(s) under our management.

    •    Brokerage fees;
    •    Transaction fees;
    •    Exchange fees;
    •    SEC fees;
    •    Advisory fees and administrative fees charged by Mutual Funds (MF) and
         Exchange Traded Funds (ETFs)
    •    Custodial Fees;
    •    Wire transfer and electronic fund processing fees;
•   Commissions or mark-ups / mark-downs on security transactions.

    D. Prepayment of Fees

    S&A collects fees in advance. Fees that are collected in advance will be refunded based on
    the prorated amount of work completed at the point of termination and the total days
    during the billing period. Fees will be returned within fourteen days to the client via
    check.
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Item 7: Types of Clients

S&A generally provides investment advice and/or management supervisory services to the
following types of clients:

            Individuals
            High-Net-Worth Individuals
            Pension and Profit Sharing Plans
            Charitable Organizations
            Corporations or other businesses

Minimum Account Size

There is an account minimum, $100,000, which may be waived by the investment advisor, based
on the needs of the client and the complexity of the situation.