TERMS OF COMMISSION FOR INTERMEDIARIES ( COMMISSION SCHEDULE ). April 2015.

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1 TERMS OF COMMISSION FOR INTERMEDIARIES ( COMMISSION SCHEDULE ). April \690911\Fleet, Georgina\Fleet, Georgina\v1\31 July

2 Terms of Commission for Intermediaries 2 IMPORTANT INFORMATION This information may be downloaded to your PC in whole or in part provided that any reproduction or copy, or any derivative, is true to the original, and it is EITHER used for personal use OR in support of an Intermediary Terms of Business with Legal & General. Professional advisers who are properly authorised may use it in the process of giving financial advice relating to Legal & General products. Copies or derivatives of the document may not be sold, marketed, or used for commercial gain. Notwithstanding the above, Legal & General Assurance Society Limited retains ownership of copyright in all such reproductions, copies or derivatives. Copyright Legal & General Assurance Society Limited, 2012 One Coleman Street, London, EC2R 5AA. All rights reserved.

3 Terms of Commission for Intermediaries 3 PART A: INTRODUCTION. Legal & General s Commission for Intermediaries on life related protection products, pensions and investment products is calculated by reference to the product/commission tables and the Commission bases as outlined in this Schedule. This Schedule sets out the terms upon which Commission is payable to the Intermediary by Legal & General for the sale of certain Products (being retail savings investment products, pure protection products and pension products) where such Commission is payable subject to compliance with Regulatory Requirements.

4 Terms of Commission for Intermediaries 4 PART B: GENERAL PROVISIONS. 1. TERMS OF BUSINESS This Commission Schedule is incorporated by reference into the Intermediary s Terms of Business with Legal & General and is subject to the General Terms set out in Part B of the Terms of Business. Should any term of this Commission Schedule be inconsistent with, or in any way contradict, any term contained in the General Terms, the term in the General Terms shall apply. Unless otherwise stated the words, definitions and expressions used in this document, including definitions, shall have the same meaning and effect as those set out in such Terms of Business. This Schedule reflects the terms upon which Commission is generated at [insert date], being the date on which it was published on the Adviser Centre by Legal & General. Legal & General will, upon request, make available the current terms by means of a telephone help-line or by publishing on-line or through any other media. 2. REMUNERATION BASIS Subject to the provisions of the General Terms and any applicable Regulatory Requirements, the Intermediary can opt to receive commission on indemnity terms in accordance with clause 6 of the General Terms ( Commission Paid on Indemnity Terms ) or on a non-indemnity basis pursuant to clause 5 of the General Terms.. If the Intermediary receives Commission on Indemnity Terms, it can opt to submit business on either an indemnity or nonindemnity basis. If the Intermediary does not receive Commission on Indemnity Terms, it can only submit business on a non-indemnity basis. 3. SPLITTING COMMISSION BETWEEN INTERMEDIARIES AND THIRD PARTIES The Intermediary is able to split Commission up to six ways depending on product type. Commission on protection products can only be split between a maximum of two advisers. The same Commission style and sacrifice terms will apply to all advisers, including the Intermediary. Commission is determined based on product type and product system. Commission on Indemnity Terms may be paid to the Intermediary where it is a nonindemnity Intermediary, because the lead Agent is paid on Indemnity Terms, in which case clause 6 of the Terms of Business will apply to the Intermediary. 4. COMMISSION SACRIFICE The Intermediary can sacrifice Commission on most products on a case-by-case basis. If Commission is split in accordance with Paragraph 3 the sacrifice percentage chosen by the first adviser will apply to every additional adviser also recorded against that case. 5. REDRAWN POLICIES (ALTERATIONS/SUBSTIT- UTIONS/AMENDMENTS) Where a Product is altered, substituted or amended by agreement with the customer, Legal & General may vary the amount of Commission paid or payable by virtue of that alteration, substitution or amendment at its sole discretion.

5 Terms of Commission for Intermediaries 5 6. TOP UPS TO UNIT LINKED PROTECTION POLICIES No commission will be payable on Unit Linked top up policies issued under any circumstances. 7. INCREASING & DECREASING PREMIUMS The following events can increase or decrease premiums: 7.1 Indexation Level Term Assurance (with or without Critical Illness Cover), Family and Personal Income Plans (with or without Critical Illness Cover), Income Protection Benefit and Whole of Life products which are sold with the Indexation option, attract an uplift to the Initial Commission payable of 10% Lautro Initial Commission. For these or any other protection products, Initial and Renewal Commission will not change following an increase (or decrease) in premium as a result of an indexation review. 7.2 Guaranteed Insurability Option (GIO) When this option is exercised a new policy is written and the premiums increase. The Intermediary receives both Initial and Renewal Commission based on the additional premium payable on the second policy. 7.3 Further Mortgage Option (FMO) When this option is exercised a new policy is written and the premiums increase. The Intermediary receives both Initial and Renewal Commission based on the additional premium payable on the second policy. 7.4 Reviewable Critical Illness Cover (CIC) If premiums increase or decrease as a result of the 5-year review Initial and Renewal Commission will remain the same. 7.5 Convertible Term Assurance Where this option is exercised, Initial Commission will be payable on the full amount of the new premium. 7.6 Flexibility Option When a flexibility option is exercised by a Client (as set out in the terms of the relevant Product), a new policy (with an increase or decrease in premium) is written to replace the original plan, which is either cancelled from outset (generating a full clawback) or lapsed (generating a partial clawback based on remaining unearned commission). Initially a full commission payment will be issued on the replacement policy based on the new premium, before a calculation is performed to establish the correct amount of commission due. This will take into account the number of premiums paid at the original level and the number of premiums payable at the new level for the remainder of the initial period that was applicable to the original policy. An adjustment will then be added to the commission statement to credit or debit commission accordingly. 7.7 Life Alteration When the Life Alteration option (as set out in the terms of the relevant Product) is exercised by a Client, a new policy (with an increase or decrease in premium) is written to replace the original plan, which will be lapsed (generating a partial clawback based on remaining unearned commission). The replacement policy will not generate a commission payment therefore a calculation is performed to multiply the clawback amount by the percentage increase or decrease to the premium, and this amount is applied as an adjustment to the commission statement. 7.8 Rated Premium Period Ends Initial Commission payable on Indemnity Terms is calculated, quoted and paid based on the premium level at outset. Should the period for which a rated premium is payable end during the Initial Commission period, a re-calculation of the Initial Commission amount will take place which may result in a partial reclaim of the Initial Commission already paid. 8. PREMIUM REFUNDS If for any reason Legal & General refunds a premium to a customer in respect of a policy, any Commission paid or credited in respect of that premium will be repayable to Legal & General.

6 Terms of Commission for Intermediaries 6 9. RENEWAL COMMISSION The payment of Renewal Commission will, subject to the General Terms, any provisions to the contrary in this Commission Schedule and any applicable Regulatory Requirements, become payable after the Initial Commission Period ends or otherwise. Renewal Commission is calculated as a fixed percentage of the premium or a percentage of the fund ( Fund-based ) dependent on product type. 10. PENSION RENEWALS Where the selected retirement date is after 65 years of age, Commission on further recurrent premiums will be treated as single premium business. 11. COMMISSION AND FEE STATEMENTS Delivery timescales for Commission and Fee paper statements are as follows. Statements will be deemed to be received four Business Days (being any day other than a Saturday, Sunday or public or bank holiday in England and Wales) after the actual statement date e.g. if the statement date is Monday, 1 st February, the paper statement will be deemed to be received on Friday 5 th February. 12. DEATH CLAIMS No clawback will be issued as a result of a policy ending earlier than planned, following a successful death claim. However, where the end date of the policy is backdated to the date of death, any Commission paid that was due after this date (renewal or trail) will be subject to a clawback. 13. TRAIL COMMISSION AND LEGACY COMMISSION In order to comply with Regulatory Requirements, from the RDR Implementation Date, Legal & General is obliged to pay Trail Commission and Legacy Commission on the terms set out below. With effect from the RDR Implementation Date, Legal & General will continue to pay Trail Commission. However, if a new or increased payment is made by a Client to Legal & General in relation to Legal & General s Retail Investment Products effected prior to the RDR Implementation Date where the investment is made as the result of a Personal Recommendation having been given by the Intermediary, Legal & General will where possible continue the payment of Trail Commission on existing premium/fund levels. Legal & General may, subject to complying with Regulatory Requirements, continue to pay Legacy Commission where: the Commission payable relates to a switch between funds held within a life insurance-based investment product, such as an insurance bond; or new and/or increased payments are made in relation to Legal & General s Retail Investment Products without any advice having been given.

7 Terms of Commission for Intermediaries WORKPLACE PENSION SCHEME ARRANGEMENTS Legal & General may, subject to complying with Regulatory Requirements, continue to pay Commission, in accordance with an agreement established prior to the RDR Implementation Date between the Intermediary and Employer/Trustee, where: the Commission payable relates to any employees joining a Group Personal Pension Scheme, Group Stakeholder Pension Scheme or an Occupational Pension Scheme established prior to the RDR Implementation Date; or the Commission payable relates to increased contributions from existing employees of a Group Personal Pension Scheme, Group Stakeholder Pension Scheme or an Occupational Pension Scheme established prior to the RDR Implementation Date; or new single payments and/or increased regular payments are made into an existing Executive Pension Plan, regardless of whether a Personal Recommendation has been given, as this product is not a Retail Investment Product. Should the Intermediary make a Personal Recommendation to an employee of a Group Personal Pension Scheme or Group Stakeholder Pension Scheme; and: the Intermediary is not the Intermediary retained by the scheme; or, the Intermediary is the Intermediary retained by the scheme, but such activity is outside of the scope of the advice and services covered by the agreement between the Intermediary and Employer/Trustee which was established prior to the RDR Implementation Date; then they would not be entitled to receive Legacy Commission for the Personal Recommendation and would instead have to be remunerated by way of an Adviser Charge for this activity (Legal & General will not facilitate the payment of such an Adviser Charge). 15. LEGACY COMMISSION EXCEPTION Save for the situations set out in paragraphs 13 and 14 of this Commission Schedule, with effect from the RDR Implementation Date, Legal & General will not pay Legacy Commission in respect of new and/or increased payments made by a Client to Legal & General in relation to Legal & General s Retail Investment Products where the payment is made as the result of a Personal Recommendation having been given by the Intermediary to the Client (for the avoidance of doubt, this includes an increase above the current level of regular premium). In relation to clause 5.29 of the General Terms which sets out where no Legacy Commission is payable, please refer to Part C of this Commission Schedule for details of the Products where Legal & General may enhance the standard product benefits, as well as details of such enhancements. 16. PRODUCTS AVAILABLE FOR NON- ADVISED SALES Pursuant to clause 3.10 of the General Terms, the following products may be sold on or after the RDR Implementation Date on a non-advised basis: Collectives managed by Legal & General Investments on behalf of UTM Structured Deposits Structured Investments (subject to the customer completing the relevant appropriateness assessment) Non-Profit Annuities Fixed Term Annuities Junior ISA

8 Terms of Commission for Intermediaries 8 PART C: PRODUCT SPECIFIC COMMISSION DETAILS. 1. LIFE RELATED PROTECTION PRODUCTS Guide to calculating Commission (Indemnity) Monthly Premium: Premium x 12 x Factor 1 x Override Annual Premium: Premium x Factor 1 x Override Guide to calculating Commission (Non-Indemnity) - Excluding Whole of Life Products Monthly Premium: Premium x 12 x Factor 2 x Override / Initial Period 3 Annual Premium: Premium x Factor 2 x Override / Initial Period 3 x 12 4 Guide to calculating Commission (Non-Indemnity) Whole of Life Products Only For Whole of Life Products, an extra 10% of the calculated commission is payable on non-indemnity cases and is included in the calculations below: Monthly Premium: Premium x 12 x Factor 2 x Override / Initial Period % Annual Premium: Premium x Factor 2 x Override / Initial Period % x The factor is based on the term of the policy and can be obtained from the table titled Protection Table (Indemnity) found within this schedule. Please note that for Indemnity Commission only, Mortgage Payment Insurance and Income Protection Benefit use different factors depending on whether the premium is paid monthly or annually. 2 The factor used for non-indemnity commission can be obtained from the table titled Protection Table (Non-Indemnity) found within this schedule. Whole of Life and Over 50 s Whole of Life use the same factors as those applicable to Indemnity Commission and these can be obtained from the table titled Protection Table (Indemnity). 3 The initial period (in months) is based on the term of the policy and can be obtained from the table titled Protection Table (Indemnity) found within this schedule. 4 As the initial commission period is quoted in months, the calculation would provide a monthly commission amount, therefore we multiply this by 12 for the equivalent annual commission amount that would be paid upon receipt of the annual premium. However, where the initial commission period does not equate to an exact number of full years (for example 43 months), the final initial commission payment will be based on the number of months remaining. In order to calculate the final commission payment we multiply the monthly commission amount by the number of remaining months (seven in this example) instead of 12.

9 Terms of Commission for Intermediaries 9 Age Limitations The following ages are the maximum ages Legal & General will pay commission on for the relevant products. A minimum of a 1-year factor is applicable for the above if the client is above the relevant age or will reach that age on their next birthday. For joint life policies, these age limitations apply to the oldest life where the policy has been sold on a 1 st death basis, and to the youngest life where the policy has been sold on a 2 nd death basis. 85 years on Whole of Life, therefore the policy term is = 85 age next birthday 80 years on Term Assurance, therefore where the term of the policy takes the client over this age, the term for commission purposes will be the number of full years the client has to 80 years. 60 years on Convertible Term assurance, therefore where the term of the policy takes the client over this age, the term for commission purposes will be the number of full years the client has to 60 years. Renewal Commission Where Renewal Commission is payable, the amount will be 2.5% of the premium received and can be paid until the end of the contract. Renewal Commission is only payable on premiums paid after all premiums due during the initial commission period have been received. For example a policy with a 48-month initial commission period would pay Renewal Commission for premium 49 onwards. The initial commission period (in months) is based on the term of the policy and can be obtained from the table titled Protection Table (Indemnity) found within this schedule. Guide to calculating Commission Clawback This applies to Initial Commission paid on Indemnity Terms. To calculate the clawback amount, we simply divide the initial commission paid by the number months applicable to the initial commission period, and then multiply by the number of premiums outstanding. For example, a policy that paid 1,200 initial commission, has a 48-month initial commission period and where 30 premiums are outstanding, the calculation would be as follows: 1,200 / 48 x 30 = 750 The initial commission period (in months) is based on the term of the policy and can be obtained from the table titled Protection Table (Indemnity) found within this schedule.

10 Terms of Commission for Intermediaries 10 Protection Table (Indemnity) Term in Years All Life related Protection Products (excluding Whole of Life) LTA / MDTA / FPIP / FLIP / SA CIC MPI / IPB (Annual Premiums) MPI / IPB (Monthly Premiums) Initial Commission Period (Months) Whole of Life Products Whole of Life Initial Commission Period (Months)

11 Terms of Commission for Intermediaries 11 Protection Table (Non-Indemnity) Term in Years LTA / LTA + CIC / MDTA /MDTA + CIC / FPIP / FLIP MPI / IPB Initial Commission Period (Months) PERSONAL RETIREMENT PLAN The Personal Retirement Plan is no longer available for new business, but existing plans will accept Single Premiums and/or increments to the existing Regular Premium. The Initial Commission payable for a Single Premium is 1.7% of the premium amount. The Initial Commission payable for a Regular Premium increment is based on 16% of Lautro Initial Commission. No Renewal Commission is payable on Single Premiums or Regular Premium increments. 3. EXECUTIVE PENSION PLAN The Executive Pension Plan is no longer available for new business, but existing plans will accept Single Premiums and/or increments to the existing Regular Premium. The Initial Commission payable for a Single Premium is 4% of the premium amount. The Initial Commission terms applicable to a Regular Premium increment will be the same as those applied to the existing Regular Premium, which may include a forced sacrifice (introduced to ensure value for money ) if started after 27 January No Renewal Commission is payable on Single Premiums or Regular Premium increments. 4. GROUP STAKEHOLDER / PERSONAL PENSION SCHEMES Commission terms are set specific to each scheme as part of the underwriting process.

12 Terms of Commission for Intermediaries PERSONAL PENSION NO 1, PENSION SAVINGS PLAN (FSAVC), SELF EMPLOYED PLAN AND PERSONAL INVESTMENT PENSION PLAN Guide to calculating Commission (Indemnity) Regular Premium: Monthly Premium X 12 X Factor* X 12% Single Premium: Single Premium x 1.25% * The factor is based on the term of the policy and can be obtained from the table below. Term in Years Initial Commission Period (Months) 1 1 Factor

13 Terms of Commission for Intermediaries 13 Enhancements to products effected prior to 31 December 2012 in accordance with part B paragraph 15 Pensions Pension Savings Plan (FSAVC) Self Employed Plan Personal Investment Pension Plan Personal Pension No.1 Additional allocation percentage applied to single contributions/transfer values 4% for contracts not subject to the stakeholder charge cap 1.25% for contracts subject to the stakeholder charge cap Where Legal & General receive an advised increment on pre 31 December 2012 contracts and are prevented from paying commission that would ordinarily have been due we will endeavour to enhance the customer s contract as indicated in the above table. However, there may be circumstances for certain products where this will not be possible. Products where Trail Commission paid as a percentage of fund value will be stopped if a Personal Recommendation is given to increase or add new contributions/investments to Products effected prior to 31 December 2012 Pensions Pension Savings Plan (FSAVC) Self Employed Plan Personal Investment Pension Plan Personal Pension No.1 For all of the products listed above, if a reinstatement of a reduction of contribution occurs in the Initial Commission period of that contribution all trail commission, whether fund or premium based, will be stopped.

14 Terms of Commission for Intermediaries INDIVIDUAL STAKEHOLDER AND INDIVIDUAL PERSONAL PENSION (PP2000) Commission Options for Regular Premiums For these pension contracts there are five Commission options available depending on the product and premium levels. Commission Paid on Indemnity Terms This option was only available where both the policy and Regular Premium started between 1 August 2006 and 11 May Where the Regular Premium has been set up on this commission style, the terms detailed below, will apply to any increments or reductions made. Where this commission style has been applied to a Group Stakeholder/Personal Pension scheme as part of the underwriting process, the terms set out below shall apply. Commission is generated based on the equivalent monthly premium multiplied by a factor (dependant on product and term) and the factor ranges from 1 to 2.5. No override is applicable to this calculation and clawback applies based on details reflected later in this schedule. Increments will follow the same commission style as the base regular premium, so mixed commission styles are not available. Further Commission Paid on Indemnity Terms may be payable for increments, This is dependent on the total premium received over the annual review period being greater than 110% of the expected annual premium. The expected premium will be the highest premium that has previously generated commission. Reviews will take place each year on or around the anniversary of the start of the regular contributions into the plan and this is the only time commission can be generated on increments - increment commission will never be paid up front. These reviews will look at the expected premium and the actual premium within the review year so it is likely that any increment made during a review year will have its commission spread over 2 annual reviews, because at the first review the increment will only be present for part of that review year. This review may also generate a reclaim of commission. This will only occur if the actual premium is lower than 95% of the expected premium. Commission clawback in respect of a particular commission payment is spread over a 3-year period (2 to 4 year period for Group schemes, depending on the terms agreed during the underwriting process), which starts on the payment of that particular commission payment. Any increase to premium on the annual review that does not hit the >10% increment will be carried forward to offset any potential clawbacks. Lower commission amounts and shorter clawback periods apply to new plans commencing within four years of the earlier of the member s selected retirement age or their 65th birthday. No increment commission is paid at yearly reviews within five years of the earlier of the member s selected retirement age or their 65th birthday. If premiums are suspended within the agreed clawback period a commission reclaim will apply. If premiums are re-instated within the agreed clawback period, part of the reclaimed commission will be re-paid on the anniversary dependent on the number of months left within the clawback period. If premiums are re-instated outside of the clawback period, commission will only be paid on increments to the initial premium. NB. There is an appendix A to the Terms of Commission available that covers in detail how pension incremental commission is calculated and paid using the Legal & General Annual Review system. This can be found on the Adviser Centre. Increment example: Case set up on 2 x monthly premium with 100 regular. So 2 x 100 = 200 Commission paid on Indemnity Terms. Case increments after 6 months to 200 regular.

15 Terms of Commission for Intermediaries 15 In the first year the expected premium will be 1200 but the actual premium will be Commission will therefore be based on a 600 annual increment ( ) and will pay increment commission of 600 / 12 = 50 x 2 = 100 In year 2 the expected premium will be 1800 but providing premiums continue the actual premium will be Commission will be based on a 600 annual increment ( ) and will pay increment commission of 600 / 12 = 50 x 2 = 100 Hence the 200 expected increment commission (2 x 100 increment) is spread over the two annual review points following the increment. Level Commission Equal to a percentage of each regular premium. Fund-based Commission Payable monthly from the start of the policy and equal to a percentage of the value of the fund. Override is not available with this option. A combination of Commission Paid on Indemnity Terms and Fund-based Commission A combination of Level Commission and Fund-based Commission Commission Options for Single Premiums/Transfer Values Indemnified Initial Commission Equal to a percentage of the single premium/transfer value. Fund-based Commission Payable monthly and equal to a percentage of the value of the fund. Override is not available with this option. A combination of Indemnified Initial Commission and Fund-based Commission Single Premiums/Transfer Values Term in Years* % of Single Premium/Transfer Value 0 - <5 [FBC or Initial + FBC] Indemnified Initial 5 - < % 10 - < % % Fund-based 0.40% Indemnified Initial plus Fund-based 1.5% % FBC * to age 65 or selected retirement age (SRA) whichever is the sooner. Notes: Commission is only paid on Single Premium or Transfer Values where the existing policy is Commission paying, as a result of a minimum 10,000 Single and/or 200 Regular Premium having been paid at outset. Commission terms for group stakeholder and group single charge personal pensions are linked to product versions determined through the scheme underwriting process. They do not depend entirely on premium levels for individual members.

16 Terms of Commission for Intermediaries 16 Enhancements to products effected prior to 31 December 2012 in accordance with part B paragraph 15 Pensions Reduction in standard annual management charge percentage for single/transfer and regular contributions Personal Pension The percentage reduction will vary from 0.0% to 0.4% Stakeholder Pension dependent on the particular version of the product Where Legal & General receive an advised increment on pre 31 December 2012 contracts and are prevented from paying commission that would ordinarily have been due we will endeavour to enhance the customer s contract as indicated in the above table. However, there may be circumstances for certain products where this will not be possible. Clawback for Single Premiums/Transfer Values On 4 January 2005 clawback of single premium and transfer value commission paid on the following products was introduced: Individual Stakeholder Group Stakeholder Individual PP (2000) Group PP (2000) This will apply to new plan applications received with effect from 4 January Applications received by 31 December 2004 and completed by 31 March 2005 will not be liable for clawback. All applications which complete after 31 March 2005 will be subject to potential clawback liability. The current levels of single premium commission remain unchanged, but the following clawback will apply: Exit within % Clawback of Commission Paid 1 year years 75 3 years 50 4 years 25 Exit above will refer to transfer out, surrender or when retirement is taken. All other Products will remain unchanged and in addition, commission clawback will not apply at this time to: New or incremental single premiums/transfers to above named existing plans/schemes. New or incremental single premiums/transfers in respect of new members to above named existing schemes. Partial surrenders where policy start date is before 1 October 2008.

17 Terms of Commission for Intermediaries 17 Changes to commission clawback terms for single contributions and transfer payments received on or after 4 May 2010 were introduced: Applies to Individual Stakeholder and Individual PP (2000) Applies to all single contributions and transfer payments received on or after 4 May No changes to clawback position on existing single contributions and transfer payments received prior to 4 May The change in clawback terms will also apply to partial surrenders within the products affected by this change. The clawback period changed from 4 years to 5 years. The percentage clawback of commission will be: Exit within % Clawback of Commission Paid 1 year years 85 3 years 70 4 years 55 5 years 40 "Exit" above will refer to transfer out, surrender or when retirement is taken. Providing investments attributable to the single contribution and/or transfer payment are held for a five year period then all commission is secured and the terms that the clients receive are unaffected by these changes.

18 Terms of Commission for Intermediaries PORTFOLIO PLUS PENSION AND PORTFOLIO PLUS SIPP Intermediaries may choose between contribution based and funded commission options where these styles are available. You cannot mix commission options within an arrangement. For example, if you have chosen contribution-based commission for regular contributions, a contribution based commission style must be used for single contributions or transfer values paid into that arrangement. Please note that commission payments will only apply to contributions and/or transfer values invested in insured funds available under the plan. Contribution Based Commission Regular Contributions, Single Contributions and Transfer Values Up to 5% Initial commission is payable, funded by a deduction (equal to the chosen rate of commission) from the allocation rate of 100%. Up to an additional 1% fund based commission may also be taken for an identical increase of the AMC. The minimum term for contribution based commission on regular contributions is five years to selected retirement age (SRA) or age 65 if earlier. The minimum term for contribution-based commission on single contributions and transfer values is one year to SRA or age 65 if earlier. Contribution based commission does not carry any clawback liability. Funded Commission Regular Contributions The below table details the Funded Commission options available, including the rates payable, for regular contributions: Commission Style Term (years) Commission Amount Effect of Sacrifice Level/Initial FBC Applicable to Increments Clawback 5 - <10 2% + 0.5% FBC No Sacrifice Allowed Level plus Fundbased 10 - <15 4% + 0.5% FBC 15+ 5% + 0.5% FBC 1% = 0.1% reduction to AMC Yes No Initial plus Fundbased 5 - < < x MP + 0.5% FBC 1.5 x MP + 0.5% FBC 2.5 x MP + 0.5% FBC No Sacrifice Allowed 0.1% FBC = 0.1% reduction to AMC Yes 36 month clawback period for Initial Commission Fund-based only N/A 1% N/A Yes No The minimum term for the funded commission option on regular contributions (including increments) is five years to selected retirement age (SRA) or age 65 if earlier. This does not apply to the Fund-based only option. The Initial plus Fund-based commission style is not available for contributions over 4,000 a month or 48,000 a year (gross).

19 Terms of Commission for Intermediaries 19 Funded Commission Single Contributions and Transfer Values The below table details the Funded Commission options available, including the rates payable, for single contributions and transfer values. It also includes the current clawback rates applicable to Single Contribution Commission. Commission Style Term (years) Commission Amount Effect of Sacrifice Level FBC Clawback Single Contribution plus Fund-based commission 5 - <10 2% + 0.5% FBC 10 - <15 4% + 0.5% FBC 15+ 5% + 0.5% FBC No Sacrifice Allowed 1% = 0.1% reduction to AMC 0.1% FBC = 0.1% reduction to AMC 1 year = 100% 2 years = 100% 3 years = 100% 4 years = 100% 5 years = 0% Fund-based only N/A 1% N/A No The minimum term for the funded commission option on single contributions and transfer values is five years to 75 or selected retirement age (SRA) if earlier. The minimum term for Fund-based only commission is one year. Effective from 1 May 2012, the clawback rates applicable to single contributions and transfer values were changed to those detailed in the table above. All single contributions and transfer values received into the plan prior to 1 May 2012 attract commission clawback at the rates detailed in the table below. Exit within % Clawback of Commission Paid 1 year years 75 3 years 50 4 years 25 5 years 0 Enhancements to products effected prior to 31 December 2012 in accordance with part B paragraph 15 Pensions Portfolio Plus Pension Portfolio Plus SIPP Reduction in standard annual management charge percentage for single/transfer and regular contributions 1% Where Legal & General receive an advised increment on pre 31 December 2012 contracts and are prevented from paying commission that would ordinarily have been due we will endeavour to enhance the customer s contract as indicated in the above table. However, there may be circumstances for certain products where this will not be possible.

20 Terms of Commission for Intermediaries RETIREMENT PRODUCTS Annuities Legal & General currently offer three annuity products. These products and the standard commission rate payable for each are detailed below: Standard Non Profit Annuity 1.0% Enhanced Non Profit Annuity 1.7% Lifestyle Non Profit Annuity 1.7% Commission is based on the consideration value after tax-free cash is taken and before any additional fund is added by Legal & General under the Guaranteed Minimum Pension process. Fixed Term Annuities Legal & General currently offer two Fixed Term Annuity products. These products and the standard commission rate payable for each are detailed below: Cash Out Retirement Plan 0.5% Fixed Term Retirement Plan 0.5% Commission is based on the consideration value after tax-free cash is taken. Clawback for Fixed Term Annuities The clawback rates applicable to Fixed Term Annuities are detailed in the table below. Exit within % Clawback of Commission Paid 1 year years 57 3 years 33 4 years 0 Income Drawdown Option Legal & General currently pays up to a maximum of 4% for any transfer values paid into an existing or new arrangement. Commission sacrifice is available where an identical amount of commission sacrificed will be added to the allocation rate. For example, a sacrifice of 1% (leaving 3% commission payable) would result in the allocation rate being increased by 1%. A further 1.5% per year Fund-based commission can also be paid. This is paid monthly and is taken directly from pension fund value by unit encashment. Where the full entitlement is taken an extra 1.5% a year will be charged to the fund. Commission sacrifice is also available, where every 0.1% sacrificed will reduce the amount taken from the fund by 0.1%.

21 Terms of Commission for Intermediaries BONDS Portfolio Bond Standard/Initial Charge/High Allocation Standard Commission Options Initial Trail 6.00% Nil 5.00% 0.25% 4.00% 0.50% 2.50% 0.75% Nil 0.90% Enhanced Trail Commission Initial Trail 5.00% 0.50% (0.25%) 5.00% 0.75% (0.50%) Enhanced trail commission is partially paid for by unit encashment. Amount shown in brackets next to Total trail is the amount taken by unit encashment 5.00% 1.00% (0.75%) 4.00% 0.75% (0.25%) 4.00% 1.00% (0.50%) 2.50% 1.00% (0.25%) Commission Sacrifice Increases unit allocation on a 1:1 basis. For every 1% of initial commission sacrificed, the allocation rate will be increased by 1%. Please note Initial charge option only: the maximum allocation rate for this option of Portfolio Bond is 100% including any initial commission sacrifice Commission Clawback (Will apply in the event of ALL 3 bullets being applicable) Initial charge option chosen The allocation rate on the Illustration (including any allowance for limited offers and commission sacrifice), plus initial commission paid, is in excess of 100%. A full or partial surrender is made within the first three years of investment. Year of Surrender Clawback as a % of amount in excess of 100% 1 100% 2 67% 3 33% Standard Initial Charge High Allocation Aimed at customers who want to pay a level amount of charges over the term of their investment. Establishment charges are paid for the first 5 years of each individual investment. Aimed at customers who prefer to pay a significant amount of their establishment charges up-front and receive loyalty bonuses as a reward for remaining invested over the longer-term. The product is also flexible as no early surrender charges apply, but customers need to appreciate their investment should be for at least 5 years, ideally longer. Aimed at customers who are looking to see an immediate gain on their investment by receiving a high initial allocation rate. They would be willing to pay establishment charges over 7 years and have higher surrender charges during this period.

22 Terms of Commission for Intermediaries 22 Select Portfolio Bond Commission Options Initial Trail Initial Trail 7% Nil 7% 0.7% 7% 0.10% 7% 0.75% 7% 0.20% 7% 0.8% 7% 0.25% 7% 0.9% 7% 0.30% 7% 1.00% 7% 0.40% 7% 1.10% 7% 0.50% 7% 1.20% 7% 0.60% 7% 1.25% Commission Sacrifice Increases unit allocation on a 1:1 basis. For every 1% of initial commission sacrificed, the allocation rate will be increased by 1%. If the highest level of initial commission (7%) is taken, an allocation rate of 93% will apply. If no initial commission is taken an allocation rate of 100% will apply. Commission can be sacrificed to 2 decimal places. For example, if initial commission of 3.25% is taken, 3.75% of commission would be sacrificed giving an initial allocation rate of 96.75% Investment Bond Commission Options Initial Trail 6% Nil 5% Nil 5% 0.25% 4% 0.50% 2.5% 0.75% Nil 0.90% On 31 December 2014, Legal & General ceased to allow additional investments to be paid in to With Profits Bonds and on 31 January 2015 the With Profits Fund was closed to new business. Calculation of trail commission for Portfolio Bond, Select Portfolio Bond and Investment Bond Trail commission for bonds is a percentage of the value of each of the client s applicable investments. The amount is calculated from the Policy date. For Investment Bond, trail commission is paid on an annual basis only. For Portfolio Bond and Select Portfolio Bond, trail commission is paid on a monthly basis only (i.e. 1/12 th of the annual rates quoted above). For additional investments into an Investment Bond, trail commission will not start until the next Policy anniversary date and will only be paid once the additional investment has been in force for 12 months following that Policy anniversary date. For example, if an additional investment is made on 1 June 2013 and the next Policy anniversary date is 1 January 2014, the first trail commission payment will be due on 1 January 2015 covering a 12 month period only. Please note that there is no trail commission due for the period 1 June 2013 to 31 December For additional investments into Portfolio Bond and Select Portfolio Bond, the trail commission will not start until the next monthly date corresponding to the Policy date (for example, 5 th of the month if the Policy anniversary date is 5 th January) and will only be paid once the additional investment has been in force for one month following this date. For example, if an additional investment is made on 1 July 2013 and the next monthly date corresponding to the Policy date is 20 July 2013, the first trail commission payment will be due on 20 August 2013 covering one month only. Please note that there is no trail commission due for the period 1 July 2013 to 20 July 2013.

23 Terms of Commission for Intermediaries 23 Enhancements to products effected prior to 31 December 2012 in accordance with part B paragraph 15 Investment Bonds Additional Allocation Percentages Investment Bond Investment Bond with Death Guarantee 4% Portfolio Bond Portfolio Bond High Allocation Portfolio Bond Initial Charge 3% Select Portfolio Bond 5.5% Where Legal & General receive an advised increment on pre 31 December 2012 contracts and are prevented from paying commission that would ordinarily have been due we will endeavour to enhance the customer s contract as indicated in the above table. However, there may be circumstances for certain products where this will not be possible. 10. STRUCTURED INVESTMENTS AND STRUCTURED DEPOSITS Products Legal & General (Portfolio Management Services) Limited will distribute Structured Investments and Structured Deposits, under a variety of marketing names, via Intermediaries. Structured Investments From 31 December 2012 no Commission will be paid in relation to the sale of these Products, including for the reinvestment of funds maturing from a previous Product. Structured Deposits From 31 December 2012 Initial Commission will be paid in relation to the sale of these Products as set out on the following website: Payments Payments will be made as specified in the UTM Commission Terms.

24 Terms of Commission for Intermediaries UTM COMMISSION TERMS The commission rates set out below are payable where: the customer is making a new investment without taking advice; the customer is making a lump sum top up to an existing investment without taking advice; or the customer is increasing the amount of a regular contribution without taking advice. Initial and/or renewal commission payable is based on the amount of the investment. Details of the value of initial and/or renewal commission for each investment are set out below. The tables below show the percentage commission paid on each lump sum or regular investment made, as well as example figures based on investments of 1,000 lump sum and 50 monthly. No commission (initial or renewal) is payable for monthly contributions into Index Tracking Trusts and no initial commission is payable for lump sum investments into Index Tracking Trusts. The rates set out below only apply to unit class R (or unit class A where shown separately). No commission is payable on investments into unit classes F and I. No commission is payable on any investments into the Cash Trust. Index Tracking Trusts Lump Sum Unit Trust Renewal 1,000 Example UK Index 0.25% 2.50 UK 100 Index 0.25% 2.50 European Index 0.25% 2.50 US Index 0.25% 2.50 Japan Index 0.25% 2.50 Pacific Index 0.25% 2.50 Global Emerging Markets Index 0.25% 2.50 Global 100 Index 0.25% 2.50 Global Technology Index 0.25% 2.50 Global Health and Pharmaceuticals Index 0.25% 2.50 International Index 0.25% 2.50 Global Environment Enterprises 0.40% 4.00 Ethical 0.25% 2.50 For investments through the Phased Investment Option (not available for the Ethical Trust, the International Index Trust or the Global Environmental Enterprises Fund), no commission is paid on the Phased Cash Account but renewal commission will be paid once the investment is moved to the customer s chosen fund(s).

25 Terms of Commission for Intermediaries 25 Actively Managed Trusts Lump Sum Monthly Contribution Unit Trust Initial 1,000 Example Renewal 1,000 Example Initial 50 per Month Example Renewal 50 per Month Example Fixed Interest A 3.00% % % % 0.15 High Income A 3.00% % % % 0.15 Dynamic Bond 3.00% % % % 0.25 Equity 3.00% % % % 0.25 Growth 3.00% % % % 0.25 UK Equity Income 3.00% % % % 0.25 UK Smaller Companies 3.00% % % % 0.25 UK Active Opportunities 3.00% % % % 0.25 UK Alpha 3.00% % % % 0.25 UK Absolute 3.00% % 5.00 N/A N/A N/A N/A European 3.00% % % % 0.25 North American 3.00% % % % 0.25 Asian Income 3.00% % % % 0.25 Pacific Growth 3.00% % % % 0.25 Worldwide 3.00% % % % 0.25 Global Growth 3.00% % % % 0.25 Managed Monthly Income 3.00% % % % 0.15 Distribution 3.00% % % % 0.25 UK Property 3.00% % % % 0.25 Multi Manager Balanced 3.00% % % % 0.25 Multi Manager Growth 3.00% % % % 0.25 Multi Manager Income 3.00% % % % 0.25 Global Macro Themes 3.00% % % % 0.25 UK Special Situations 3.00% % 5.00 N/A N/A N/A N/A Please note that for investments into the Fixed Interest and High Income Trusts R class, you will only receive renewal commission. Lump Sum Monthly Contribution Unit Trust Initial 1,000 Example Renewal 1,000 Example Initial 50 per Month Example Renewal 50 per Month Example Fixed Interest N/A N/A 0.25% 2.50 N/A N/A N/A N/A High Income N/A N/A 0.25% 2.50 N/A N/A N/A N/A 12. LGII COMMISSION TERMS LGII will, depending on specific Commission arrangements agreed with the Intermediary, pay from 0% to 1% of the bond value for trail commission, for business that is placed with LGII prior to the RDR Implementation Date.

26 Terms of Commission for Intermediaries 26 Legal & General A ssurance Society Limited Registered in England and Wales No Legal & General (Portfolio Management Services) Limited Registered in England and Wales No Legal & General (Unit Trust Managers) Limited Registered in England and Wales No Registered Office One Coleman Street, London EC2R 5AA Legal & General International (Ireland) Limited Registered in Ireland No Registered Office: Beaux Lane House, Mercer Street Lower, Dublin 2, Ireland