Allison Investment Management LLC

Fees and Compensation

The following types of fees will be assessed:

Asset Management – Fees are charged quarterly in advance and are based primarily on asset
size and the level of complexity of the services provided. In individual cases, AIM has the sole
discretion to negotiate fees that are lower than the standard fee shown or to waive fees. Fees are
not based on the share of capital gains or capital appreciation of the funds or any portion of the
funds. Comparable services for lower fees may be available from other sources. Fees for the
initial quarter will be prorated based upon the number of calendar days in the calendar quarter
that the advisory agreement is in effect. Fees are based on the market value of the assets on the
last business day of the previous quarter. Annual fees range from .60% - 1.50%, depending on
the amount of assets under management (“AUM”) – See chart below.

Fee Schedule for Asset Management:

  Total Household Assets Under Management                Maximum Annual Advisory Fee

   $0 - $500,000                                                    1.50%

   $500,001 – $1,000,000                                            1.35%

  $1,000,001 - $2,000,000                                           1.20%

  $2,000,001 - $4,000,000                                           1.00%

  $4,000,001 - $8,000,000                                           0.80%

  Over $8,000,000                                                   0.60%

Wrap Asset Management –
As authorized in the client agreement, the account custodian withdraws Allison Investment
Management, LLC’s advisory fees directly from the clients’ accounts according to the

custodian’s policies, practices, and procedures. The quarterly management fee for advisory
services will be listed on the custodial statement in the month in which it is debited from the
account. You should carefully review the statement from your custodian/broker-dealer’s
statement and verify the calculation of fees. Your custodian/broker-dealer does not verify the
accuracy of fee calculations. You may choose to be billed directly for our quarterly service fee. If
you choose direct billing, you will be invoiced by the fifth business day of the month subsequent
to the most recently ended billing period. Payments are due on or by the final business day of the
month in which the invoice is generated, resulting in accounts being debited for management
fees in the month subsequent to the month in which payment is billed and received.

Fees are charged in advance on a quarterly basis. Clients may terminate investment advisory
services provided by AIM, without penalty, upon written notice at any time after entering into
the advisory agreement with AIM. The client is responsible for any fees and charges from third
parties such as transaction fees for any securities transactions executed, and for account
maintenance or custodial fees. Clients who terminate investment advisory services during a
quarter are charged, or rebated, a prorated advisory fee based on the date of AIM’s receipt of
client’s written notice to terminate. Both earned fees, and any rebate of unearned fees, are
immediately due and payable within five business days of a notice of termination.

Additional Fees and Expenses

In addition to advisory fees paid to AIM as explained above, clients may pay custodial service,
account maintenance, transaction, and other fees associated with maintaining the account. These
fees vary by broker and/or custodian. Clients should ask AIM for details on transaction fees or
other custodial fees specific to their account, as these fees are not included in the annual advisory
fee. AIM does not share any portion of such fees. Additionally, for any mutual funds purchased,
the client may pay their proportionate share of the funds’ distribution, internal management,
investment advisory and administrative fees. Such fees are not shared with AIM and are
compensation to the fund manager. Clients are urged to read the mutual fund prospectus prior to
investing.

Mutual fund companies impose internal fees and expenses on clients. These fees are in addition
to the costs associated with the investment advisory services as described above. Complete
details of such internal expenses are specified and disclosed in each mutual fund company’s
prospectus. Clients are strongly advised to review the prospectus(es) prior to investing in such
securities.

Mutual funds purchased or sold in broker-dealer accounts may generate transaction fees that
would not exist if the purchase or sale were made directly with the mutual fund company.
Mutual funds held in broker-dealer accounts also charge management fees. These mutual fund
management fees may be more or less than the mutual fund management fees charged if the
client held the mutual fund directly with the mutual fund company. Clients may purchase shares
of mutual funds directly from the mutual fund issuer, its principal underwriter, or a distributor
without purchasing the services of AIM or paying the advisory fee on such shares (but subject to
any applicable sales charges). Certain mutual funds are offered to the public without a sales
charge. In the case of mutual funds offered with a sales charge, the prevailing sales charge (as
described in the mutual fund prospectus) may be more or less than the applicable advisory fee.

However, clients would not receive AIM’s assistance in developing an investment strategy,
selecting securities, monitoring performance of the account, and making changes as necessary.

Please refer to Item 12 “Brokerage Practices” of this brochure for additional information.

Form ADV, Part 2A, Item 6

          Performance-Based Fees and Side-By-Side Management

Allison Investment Management, LLC does not charge performance-based fees or participate in
side-by-side management. Side-by-side management refers to the practice of managing accounts
...

Types of Clients

AIM offers investment advisory services to individuals, pension/profit sharing plans, trusts,
estates and corporate entities. The minimum relationship size to open and maintain an advisory
account is $500,000, although AIM may waive this minimum requirement under extraordinary
circumstances.
Form ADV, Part 2A, Item 8

       Methods of Analysis, Investment Strategies, and Risk of Loss

AIM’s methods of analysis and investment strategies incorporate the client’s needs and
investment objectives, time horizon, and risk tolerance. AIM is not bound to a specific
investment strategy for the management of investment portfolios but rather consider the risk
tolerance levels pre-determined gathered at the account opening, as well as on an on-going basis.
Examples of methodologies that our investment strategies may incorporate include:

Asset Allocation – Asset Allocation is a broad term used to define the process of selecting a mix
of asset classes and the efficient allocation of capital to those assets by matching rates of return
to a specified and quantifiable tolerance for risk.

Dollar-Cost Averaging – Dollar-cost averaging is the technique of buying a fixed dollar amount
of securities at regularly scheduled intervals, regardless of the price per share. This will
gradually, over time, decrease the average share price of the security. Dollar-cost averaging
lessens the risk of investing a large amount in a single investment at the wrong time.

Technical Analysis – involves studying past price patterns and trends in the financial markets to
predict the direction of both the overall market and specific stocks.

Long-Term Purchases – securities purchased with the expectation that the value of those
securities will grow over a relatively long period of time, generally greater than one year.

Short-Term Purchases – securities purchased with the expectation that they will be sold within a
relatively short period of time, generally less than one year, to take advantage of the securities’
short term price fluctuations.

Our strategies and investments may have unique and significant tax implications. Regardless of
your account size or other factors, we strongly recommend that you continuously consult with a
tax professional prior to and throughout the investing of your assets.

Investing in securities involves risk of loss that clients should be prepared to bear. Although we
manage your portfolio with strategies and in a manner consistent with your risk tolerances, there
can be no guarantee that our efforts will be successful. You should be prepared to bear the risk
of loss.

All investments involve the risk of loss, including (among other things) loss of principal, a
reduction in earnings (including interest, dividends, and other distributions), and the loss of
future earnings. These risks include market risk, interest rate risk, issuer risk, and general
economic risk. Regardless of the methods of analysis or strategies suggested for your particular
investment goals, you should carefully consider these risks, as they all bear risks.

AIM’s primary goal for investing is to help the client maintain purchasing power over the long
term. This may result in short term variability and loss of principal. Time horizon and risk
tolerance are key determinates of the proper asset allocation. AIM’s approach focuses on taking
appropriate risks for which clients are compensated (i.e. market risk) and seeking to limit or
eliminate risks that do not provide compensation over the long term (i.e. individual stock risk or
lack of portfolio risk).

Below are some more specific risks of investing:

Market Risk. The prices of securities in which clients invest may decline in response to certain
events taking place around the world, including those directly involving the companies whose
securities are owned by the client or an underlying fund; conditions affecting the general
economy; overall market changes; local, regional or global political, social or economic
instability; and currency, interest rate and commodity price fluctuations. Investors should have a
long-term perspective and be able to tolerate potentially sharp declines in market value.

Management Risk. AIM’s investment approach may fail to produce the intended results. If our
perception of the performance of a specific asset class or underlying fund is not realized in the
expected time frame, the overall performance of client’s portfolio may suffer.

Equity Risk. Equity securities tend to be more volatile than other investment choices. The value
of an individual mutual fund or ETF can be more volatile than the market as a whole. This

volatility affects the value of the client’s overall portfolio. Small- and mid-cap companies are
subject to additional risks. Smaller companies may experience greater volatility, higher failure
rates, more limited markets, product lines, financial resources, and less management experience
than larger companies. Smaller companies may also have a lower trading volume, which may
disproportionately affect their market price, tending to make them fall more in response to
selling pressure than is the case with larger companies.

Fixed Income Risk. The issuer of a fixed income security may not be able to make interest and
principal payments when due. Generally, the lower the credit rating of a security, the greater the
risk that the issuer will default on its obligation. If a rating agency gives a debt security a lower
rating, the value of the debt security will decline because investors will demand a higher rate of
return. As nominal interest rates rise, the value of fixed income securities is likely to decrease. A
nominal interest rate is the sum of a real interest rate and an expected inflation rate.

Municipal Securities Risk. The value of municipal obligations can fluctuate over time, and may
be affected by adverse political, legislative and tax changes, as well as by financial developments
...