Alliance Investment Management LLC

ITEM 5: FEES AND COMPENSATION

Investment Management Services Fees

       Although our fees for our services may be negotiated under certain circumstances, our
standard fee schedule is as follows:

 Our Authority        Security Type                          Asset Level                   Annual Fee

 Discretionary*       Stocks (Including MLP, REIT)           $0 - $1,999,999               1.00%
                                                             $2,000,000 – $3,999,999       0.90%
                                                             $4,000,000 or more            0.80%
 Discretionary*       Exchange Traded Products,              $0 - $1,999,999               0.85%
                      Mutual Funds, Fixed Income             $2,000,000 – $3,999,999       0.75%
                                                             $4,000,000 or more            0.65%

Part 2 of Form ADV                                3                Alliance Investment Management, LLC

 Our Authority        Security Type                          Asset Level                  Annual Fee

                      Investments, Annuities and Unit
                      Investment Trusts
 Discretionary*       Cash & Equivalents and Money           $0 - $1,999,999              0.50%
                      Market Funds                           $2,000,000 – $3,999,999      0.40%
                                                             $4,000,000 or more           0.30%
 Nondiscretionary     Nondiscretionary Account               $0 - $1,999,999              0.60%
                      (All Security Types)                   $2,000,000 – $3,999,999      0.50%
                                                             $4,000,000 or more           0.40%

       *Additional Annual fee for utilizing option strategies: 0.50%

       Our fee varies depending on the type of account, our authority, and the type of invest-
ments utilized in your investment strategy. For investment advice on your employer sponsored
retirement plan, our fee is negotiable. We negotiate this fee with you, depending on the size and
complexity of the plan and the desired services, prior to you signing the Investment Advisory
Agreement with us.

        We charge our fees quarterly in advance based on a percentage of the market value of the
assets in your account under our management. However, upon your request and in our discretion,
we may agree upon fixed periodic fees for these services. These fixed periodic fees generally
range from $500 to $10,000 and will be billed and paid based upon our agreement with you.

        With respect to our asset-based fees, we prorate and charge our fee for your initial quarter
based on the value of your assets in the account(s) that you place under our management. Going
forward, our fee is calculated at the end of each calendar quarter using the ending balance of
your assets in your account(s), multiplied by one-fourth of the applicable annual fee schedule.
We do not adjust our fee based on additions to or withdrawals from your account during the
quarter. We calculate the value of your assets held in your account as of the end of each month
using our portfolio accounting software, which is reconciled to your account custodian. We do
not independently value your assets. For assets that have no readily ascertainable market value
reported by your custodian, we will discuss with you and agree on an appropriate valuation
method in advance.

        Our fee schedule assumes our bills will be paid on time. Generally, our Investment
Advisory Agreement with you authorizes us to send our invoice to and direct your custodian to
debit our fees from your accounts. If you provide us such authorization, at the same time we
submit our request for payment to your custodian, you will be sent a notice from us, in writing,
stating the exact amount of our management fee and the specific manner or basis on which we
calculated our fee. Your management fee payment will show on your custodian statement. You
may withdraw this authorization for direct billing of our fees at any time by notifying us or your
custodian in writing. If you request to pay our fees directly, our fees are due and payable within a
Part 2 of Form ADV                               4                Alliance Investment Management, LLC

week of receipt of our quarterly invoice. The methods of payment are (1) fee deduction or (2)
check or money order.

Fees for Advice Services for Qualified Plan Participants

       Our standard fee schedule for Advice Services is as follows:

      Our Authority             Plan Participant Account Balance   Annual Fee

      Discretionary             $0 - $1,999,999                    0.90%
                                $2,000,000 – $3,999,999            0.70%
                                $4,000,000 or more                 0.50%
      Nondiscretionary          $0 - $1,999,999                    0.60%
                                $2,000,000 – $3,999,999            0.50%
                                $4,000,000 or more                 0.40%

        Our fee varies depending on our authority to invest the plan participant account as stated
above. The annual fee is payable quarterly, in advance, based on the value of the accounts of
those plan participants electing Advice Services as of the last day of the prior quarter, as reported
by the plan’s custodian. The value of the assets is multiplied by one-fourth of the applicable
annual fee schedule. Fees for a partial quarter will be prorated based on the number of calendar
days the plan assets are under our management.

        The plan sponsor determines method to pay the total fees for all plan participants electing
Advice Services. Any fees billed directly to plan sponsor are payable 30 days from the date of
invoice. Any amounts due after that time will be deducted directly from the accounts of plan
...

ITEM 7: TYPES OF CLIENTS

        We provide investment advice to individuals, pension and profit sharing plans, trust,
estates, charitable organizations, corporations, other investment advisers or other business
entities.

       Our annual minimum consolidated account/ relationship fee, except Advice Services to
plan participants, is $1,000, which we may waive in our discretion.