Templeton Financial Services Inc

Item 5           Fees and Compensation

   A. The client can determine to engage the Registrant to provide discretionary investment
      advisory services on a fee-only basis.

         INVESTMENT ADVISORY SERVICES
         The client can determine to engage the Registrant to provide discretionary investment
         advisory services on a fee-only basis. The Registrant’s annual investment advisory fee is
         based upon a percentage (%) of the market value of the assets placed under the Registrant’s
         management as follows:

                 Assets under management             Annual Fee (%)
                 $250,000 and above                  0.35%

   B. Clients may elect to have the Registrant’s advisory fees deducted from their custodial
      account. Both Registrant's Investment Advisory Agreement and the custodial/ clearing
      agreement may authorize the custodian to debit the account for the amount of the
      Registrant's investment advisory fee and to directly remit that management fee to the
      Registrant in compliance with regulatory procedures. In the limited event that the
      Registrant bills the client directly, payment is due upon receipt of the Registrant’s invoice.
      The Registrant shall deduct fees and/or bill clients quarterly in advance or in arrears, based
      upon the market value of the assets on the last business day of the previous quarter.

   C. As discussed below, unless the client directs otherwise or an individual client’s
      circumstances require, the Registrant shall generally recommend that various broker-
      dealers/custodians serve as the broker-dealer/custodian for client investment management
      assets. Broker-dealers charge brokerage commissions and/or transaction fees for effecting
      certain securities transactions (i.e. transaction fees are charged for certain no-load mutual
      funds, commissions are charged for individual equity and fixed income securities
      transactions). In addition to Registrant’s investment management fee, brokerage
      commissions and/or transaction fees, clients will also incur, relative to all mutual fund and
      exchange traded fund purchases, charges imposed at the fund level (e.g. management fees
      and other fund expenses).

   D. Registrant's annual investment advisory fee shall be prorated and paid quarterly, in advance
      or in arrears, based upon the market value of the assets on the last business day of the
      previous quarter not including cash. The Registrant generally requires a minimum asset
      level of $250,000 for investment advisory services when serving as a sub-advisor. This
      minimum increases to $2,000,000 for clients who engage the Registrant directly. The
      Registrant, in its sole discretion, may charge a lesser investment management fee and/or
      waive or reduce its minimum asset requirement based upon certain criteria (i.e. anticipated
      future earning capacity, anticipated future additional assets, dollar amount of assets to be
      managed, related accounts, account composition, negotiations with client, etc.).

         The Investment Advisory Agreement between the Registrant and the client will continue in
         effect until terminated by either party by written notice in accordance with the terms of the
         Investment Advisory Agreement. Upon termination, the Registrant shall refund the pro-
         rated portion of the advanced advisory fee paid based upon the number of days remaining
         in the billing quarter.

Item 7           Types of Clients

         The Registrant’s clients shall generally include individuals, business entities, banks or thrift
         institutions, pension and profit-sharing plans, trusts, estates and charitable organizations.
         The Registrant generally requires a minimum asset level of $250,000 for investment
         advisory services when serving as a sub-advisor. This minimum increases to $2,000,000
         for clients who engage the Registrant directly. The Registrant, in its sole discretion, may
         charge a lesser investment management fee and/or waive or reduce its minimum asset
         requirement based upon certain criteria (i.e. anticipated future earning capacity, anticipated
         future additional assets, dollar amount of assets to be managed, related accounts, account
         composition, negotiations with client, etc.).