Class Plus 2 Information Folder and Contract Provisions - Empire Life

8.3.1 Annual Fund Fee RateEach Fund has an Annual Fund Fee Rate that is used indetermining the Class Plus Fee.The Annual Fund Fee Rate for each Fund currently available isshown in the following chart:FundAnnual Fund FeeRateMaximum AnnualFund Fee RateMoney Market Fund 0.50% 1.00%Bond Fund 0.50% 1.00%Income Fund 0.60% 1.10%Balanced Fund 0.80% 1.30%Global Balanced Fund 1.10% 1.60%Asset Allocation Fund 0.80% 1.30%Elite Balanced Fund 1.10% 1.60%Dividend Balanced Fund 1.10% 1.60%Conservative Portfolio Fund 0.60% 1.10%Balanced Portfolio Fund 0.80% 1.30%Moderate GrowthPortfolio Fund0.80% 1.30%Growth Portfolio Fund 1.10% 1.60%We reserve the right to change the Annual Fund Fee Rate up tothe Maximum Annual Fund Fee Rate without providing advancenotice to you.8.3.2 Calculation of the Class Plus FeeThe amount of the Class Plus Fee is determined by thefollowing factors:1) the Annual Fund Fee Rate for each Fund held in thecontract;2) the Income Base at the end of each month;3) the proportional market value of the Fund in relation to theother Funds held in the contract.The monthly Class Plus Fee is calculated based on the followingformula:F = I x ((M x R)/12)Where:F =Class Plus Fee collected on the last Valuation Dateof the monthI = Income Base on the last Valuation Date of the month(after all transactions have been processed)M =R =Proportional weighting of the market value of the FundClass Units relative to the market value of the contract onthe last Valuation Date of the monthAnnual Fund Fee Rate for the applicable FundExample of the Class Plus Fee calculation:Assumptions:Income Base = $100,000Market value of the contract = $110,000* withFund 1 = $55,000*Fund 2 = $35,000*Fund 3 = $20,000*Annual Fund Fee RatesFund 1 = 0.50%Fund 2 = 0.60%Fund 3 = 0.80%The Class Plus Fee calculation is as follows:FundProportional market valueof Fund (M) relative to theContractAnnual Fund FeeRate (R)(M x R)/12 Income Base (I) Class Plus Fee (F)Fund 1$55,000($55,000/$110,000)= 0.50000.50%(0.5000 x 0.50%)/12 =0.000208$100,000 $20.80Fund 2Fund 3$35,000($35,000/$110,000)= 0.3182$20,000($20,000/$110,000)= 0.18180.60%0.80%(0.3182 x 0.60%)/12 =0.000159(0.1818 x 0.80%)/12 =0.000121$100,000 $15.90$100,000 $12.10Class Plus Fee to be collected on the last Valuation Date of that month $48.80* The market values quoted are hypothetical and for illustrative purposes only and should not be considered as representative of past or futureinvestment performance.19