Page 48 - ASCOT GROUP COMPLETE DOCUMENT (2)

3. Increased Commissions

On the back of superior, digital, automated and scalable administration systems the Ascot Group is not
only able to provide a better service to intermediaries and end consumers, it is also able to run more
efficiently than existing competitors working on archaic legacy systems thus allowing the Ascot Group
to pass on savings to both the business introducer and end consumer.

For the introducing financial advisor we will be able to increase commissions by some 5% - 20% on
Ascot Life savings plans (compared to similar competitor products) which translates to an increase of
some 66% - 100% for the owner/s of the advisory company. The financial advisory company cost base
will remain the same as their only change will be an increase in commission. The owners/management
team of the financial advisory company will, in most cases, undoubtedly be the decision makers in
which products are sold.

Assuming that the average initial commission being paid out to financial advisory firms is currently
4.5%, Ascot Life can comfortably offer increased commissions to 5% and even 5.25%. Normally, the
advisory firm will pay around 4% to their downline (advisers and in some cases other
distributors/introducers) and retain 0.75%. Therefore, an increase of 0.5% or 0.75% represents an
increase between two thirds and double the profit to the advisory firm - experience tells us that this
increase will not be passed on down the line!

4. Commission – Unrestricted Ability to Pay

Ascot Life will not be restricted to paying only 50% of commission earned, upon receipt of the first
premium (with the balance payable over the following 5 years) as is currently the position on savings
plans in certain far eastern markets. This means that all commission may be paid out on day one.

5. Investor / Consumer Value

Whilst being able to increase profits for the advisors is probably going to be the primary driver for their
putting Ascot Life products in front of the potential client, it is also important that the end consumer
receives value and is given every opportunity to achieve the best possible returns. Therefore, Ascot
Life will endeavour to offer investment plans with some of the most competitive fees in the
international market. Again, this is achieved only because we are starting with a fresh canvass and
implementing the most up to date systems available. The following is a table showing comparative
investments into similar products offered by Ascot Life’s competitors:

Comparative Fund Projections - Assuming a premium of $500 per month for a 15-year premium
payment term, assuming 6.5% gross growth, the following applies.