Trustmont Advisory Group Inc

Item 5 - Fees and Compensation

          1. If you choose to receive a written Financial Plan, we may negotiate our charges
          with you. We determine our costs by looking at several things. First, we decide how
          much information we must evaluate. Second, we determine how much research must
          be done, and third, how long it will take us to write the report. We will never charge
          you more than $5,000 for the plan, and payment can be made in two installments.
          The first installment is due when you sign an agreement for us to write the plan. The
          second installment is due when we meet with you, give you a copy of the plan, and
          discuss it with you.

          2. We may agree to do a Financial Plan for you at no charge. This may occur if you
          are an established customer currently paying for other services, or we may waive the
          fee if we have earned commissions by doing trades for you.

          3. We may also charge you if you want us to review and update a plan we wrote for
          you in the past. We cannot charge you more than 33% of the cost of the original
          financial plan unless the information used to prepare the original written financial
          plan has changed.

          4. When we provide you specific advice on your investments, we may charge you no
          more than $500 per hour. This fee can be negotiated, and must be paid at the end of
          the meeting. The advice we give you may also cover any or all of the following
          areas:
                 a. Business Planning
                 b. Children’s Education
                 c. Retirement Planning
                 d. Estate Planning
                 e. Conserving your money and other valuable assets
                 f. Tax planning

          5. When we manage your investments for you, we are typically paid a percentage of
          the value of the assets we manage. This fee can be no more than 2% a year. We will
          bill the amount of fee to you either on a monthly basis or a quarterly basis. You may
          pay this bill one of two ways:

                 a. You pay the invoice that may be sent to you.

       b. This fee is deducted from the funds you have in your account(s).

If you start the plan in the middle of a period, you may only have to pay for the
number of days remaining in that period. You may have to pay for a full period
when you transfer your funds from another manager. This amount will be a part of
the agreement that you sign.

You may be charged a different fee and receive different services depending on
which Trustmont Advisory Group, Inc. advisor you choose to work with.

If you find an error in your billing statement, please call us at 724-468-5665. After
review, if we agree that an error has occurred, we will correct the error by making
either a credit or debit to your account. We will send you a letter to explain what we
did. You must inform us or your adviser of the error no later than April 15 of the
year following the year in which the error occurred. If you notify us or your advisor
after the above date, the error will not be corrected.

We will charge your account immediately if we discover that your account was under
billed. We will send you a letter to explain the mistake. We must do this within 60
days of the date in which the original charge was assessed.

6. We can charge a customer up to $100 to attend a seminar.

7. Some of us are Registered Representatives. We may earn a commission by selling
you investments and other products. This is discussed in detail in Item 10.

8. You may be charged a commission to purchase a mutual fund, ETF, variable
annuity or other product. Your representative will tell you how much the
commission will be. He or she will also detail the amount the mutual fund, variable
annuity, ETF or other product charges for other expenses.

9. We may charge you a set-up fee to establish an account with Trustmont Advisory
Group, Inc. This fee may be as high at $100 per account with a maximum fee of
$200 per household.

10. Trading, brokerage and custodial fees charged by the client’s third party broker-
dealer and custodian are separate and distinct from management fees charged by
Trustmont Advisory Group, Inc. In addition, clients will incur certain charges
imposed by third parties other than Trustmont Advisory Group in connection with
investments made through a Trustmont Advisory Group account, including but not
limited to, mutual fund sales loads, 12b-1 fees and surrender charges, IRA and
qualified retirement plan fees.

Investment Advisory Fees charged by Trustmont Advisory Group are separate and
distinct from the fees and expenses charged by investment company securities that
are recommended to clients. A description of these fees and expenses are available in
each investment company security’s prospectus. Some fund fees include 12b-1 fees,
which are internal distribution fees assessed by the Fund, all or a portion of which are
paid to the distributor(s) of the Funds. Trustmont Advisory Group, Inc., and your
Advisory Representative do not retain 12b-1 fees paid by Funds.

           In most cases, mutual fund companies offer multiple share classes of the same mutual
           fund. Some share classes of a fund charge higher internal expenses, whereas other
           share classes of a fund charge lower internal expenses. Institutional and advisory
           share classes typically have lower expense ratios and are less costly for a client to
           hold than Class A shares or other share classes that are eligible for purchase in an
           advisory account. Mutual funds that offer institutional share classes, advisory share
           classes, and other share classes with lower expense ratios are available to investors
           who meet specific eligibility requirements that are described in the mutual fund’s
...

Item 7 - Types of Clients

We work with the following kinds of clients:

              ♦ Individuals,
              ♦ Pension and Profit Sharing Plans,
              ♦ Trusts,
              ♦ Estates,
              ♦ Charitable Organizations,
              ♦ Corporations, and
              ♦ Other Business Entities.