AM Investment Strategies LLC

Item 5 - Fees and Compensation

Investment Management Fees
We provide investment management services for an annual fee based upon a percentage of the market
value of the assets under management. Depending on the specific circumstances, private fund
investments recommended by us may be included in the calculation of the value of your assets under
management. All such arrangements will be agreed to in advance.

Our annual fee is charged monthly, in advance, based upon the market value of the assets being
managed by us on the last day of the previous quarter. The annual fee varies depending upon the
market value of the assets under management, as follows:

                        Portfolio Value                       Annual Fee
                        Less than $1,000,000                   1.00%
                        $1,000,000 to $2,000,000               0.90%
                        $2,000,000 to $3,000,000               0.80%
                        $3,000,001 to $4,000,000               0.75%
                        $4,000,001 - $5,000,000                0.70%
                        Above $5,000,000                       Negotiable

Our annual fee is exclusive of, and in addition to, brokerage commissions, transaction fees, and other
related costs and expenses which are incurred by you. We do not, however, receive any portion of
these commissions, fees, and costs.

We do not separately charge you for our financial planning services.

In our sole discretion, we may negotiate to charge a lesser management fee based upon certain criteria
(i.e., anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to
be managed, related accounts, account composition, pre-existing client, account retention, pro bono
activities, etc.). Also, from time to time and in our sole discretion, we may agree to exempt certain
assets from the calculation of investment management fees. Although this is a benefit to you overall, it
represents a conflict of interest for us, as we are incentivized to encourage you to move more assets to
the billable category.

Fees Charged by Financial Institutions
As further discussed in response to Item 12 – Brokerage Practices, we generally recommend that you
utilize the brokerage and clearing services of an independent broker-dealer for investment
management accounts.

We may only implement our investment management recommendations after you have arranged for
and furnished us with all information and authorization regarding accounts with appropriate financial
institutions. Financial institutions include but are not limited to any broker-dealers recommended by

us, broker-dealers directed by you, trust companies, banks, etc. (collectively referred to herein as the
“Financial Institutions”).

You may incur certain charges imposed by the Financial Institutions and other third parties such as
custodial fees, charges imposed directly by a mutual fund or ETF (exchange traded fund) in the
account, which are disclosed in the fund’s prospectus (i.e., fund management fees and other fund
expenses), deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic
fund fees, and other fees and taxes on brokerage accounts and securities transactions. Additionally,
you may incur brokerage commissions and transaction fees. Such charges, fees and commissions are
exclusive of and in addition to our fee.

Our Agreement and the separate agreement with any Financial Institutions may authorize us to debit
your account for the amount of our fee and to directly remit that management fee to us. Any Financial
Institutions recommended by us have agreed to send a statement to you, at least quarterly, indicating
all amounts disbursed from the account including the amount of management fees paid directly to us.
Alternatively, you may elect to receive an invoice for payment.

Fees for Management During Partial Quarters of Service
For the initial period of investment management services, the fees are calculated on a pro rata basis. If
assets are deposited into or withdrawn from an account after the inception of a quarter, the fee
payable with respect to such assets will not be adjusted or prorated based on the number of days
remaining in the quarter.

The Agreement between you and AMIS will continue in effect until terminated by either party pursuant
to the terms of the Agreement. Our fees are prorated through the date of termination and any
remaining balance is charged or refunded to you, as appropriate.

You may make additions to and withdrawals from your account at any time, subject to our right to
terminate an account. Additions may be in cash or securities provided that we reserve the right to
liquidate any transferred securities or decline to accept particular securities into your account. You
may withdraw account assets on notice to us, subject to the usual and customary securities settlement
procedures. However, we design our portfolios as long-term investments and the withdrawal of assets
may impair the achievement of your investment objectives. We may consult with you about the
options and ramifications of transferring securities. You are advised that when transferred securities
are liquidated, they are subject to transaction fees, fees assessed at the mutual fund level (i.e.
contingent deferred sales charge) and/or tax ramifications.

Financial Planning Fees
Fees for this service are included in the investment management fee assessed.

Reporting/Limited Account Administration Fees
Fees for reporting only or limited account administration are annual set fees. They normally range
from $50 per year to $30,000 per year, depending upon the services requested. Our Agreement
authorizes us to debit your account for the amount of our fee and to directly remit this fee to us.

Other Compensation
Insurance Sales
Certain of our Supervised Persons, in their individual capacities, are also licensed insurance agents
...

Item 7 - Types of Clients
We provide our services to individuals, trusts, estates, pension and profit-sharing plans and business
entities.