AMI Asset Management Corp

Item 5. Fees and Compensation

Fee Schedule for High Net Worth Accounts

AMI’s standard fee schedule for separately managed accounts is based on the market
value of each account and is stated on an annual basis. The minimum annual
management fee is $10,000 (based on a client’s total assets under management),
which may be waived by AMI. AMI will not charge a minimum fee in excess of 2% of
assets under management in an account.

Domestic Large Cap Growth: Minimum Account Size $1,000,000

       1.00%           on the first $10 million
       0.75%           on the balance

Domestic Small Cap Growth: Minimum Account Size $500,000

       1.00%          on the first $10 million
       0.75%          on the balance

Domestic Large Cap Equity Income: Minimum Account Size $500,000

       1.00%         on first $10 million
       0.75%         on the balance

Amplified Growth Strategy: Minimum Account Size $500,000

      1.00%          on first $10 million
      0.75%          on the balance

Government/Corporate Fixed Income: Minimum Account Size $1,000,000

       0.60%          for all asset amounts

Intermediate Quality Tax Exempt Fixed Income: Minimum Account Size $1,000,000

      0.50%          for all asset amounts

High Yield Capital Appreciation Accounts: Minimum Account Size $1,000,000

       1.00%          for all asset amounts

Fee Schedule for Institutional Accounts

AMI’s standard fee schedule for institutional accounts is based on the market value of
each account and is stated on an annual basis. If applicable, minimum annual
management fees are listed on the AMI Advisory Agreement.

Large Cap Domestic Equity Accounts: Minimum Account Size $1 million

       0.70%          up to $10 million
       0.60%          on the next $15 million
       0.50%          on the next $25 million
       0.40%          on the balance

Small Cap Domestic Equity Accounts: Minimum Account Size $1 million

       0.90%          up to $10 million
       0.80%          on the next $15 million
       0.70%          on the next $25 million
       0.60%          on the balance

Domestic Large Cap Equity Income: Minimum Account Size $500,000

       0.70%          up to $10 million
       0.60%          on the next $15 million
       0.50%          on the next $25 million
       0.40%          on the balance

Tailored Relationships

Model Portfolios
AMI generally receives an annual management fee ranging from 0.30% to 0.45% of the
market value under management, depending on the investment strategies utilized,
which is paid quarterly in arrears.

Private Funds
AMI generally receives an annual management fee ranging from 0.40% to 0.70% of
each private fund’s assets under management with AMI, which is paid quarterly in
arrears and based on the private fund’s AUM as of the end of each quarter. AMI does
not charge a performance fee to the private funds and also does not receive any portion
of any performance fee paid by the private funds. In addition, AMI does not receive
any type of referral fee or other type of compensation from the private funds.

Sub-Advisory Relationships
AMI generally receives an annual management fee of 30-50 basis points of the market
value under management, depending on the investment strategy utilized.

Wrap Programs
If AMI acts as a portfolio manager for a wrap fee program, it will generally receive an
annual management fee of 30-50 basis points of the market value of each wrap client’s
assets managed by AMI. The Wrap Sponsors calculate and pay the fee to AMI.

Additional Fee Information

The management fees referenced in this Item 5 are for investment management
services only and do not include any custodian fees, transaction fees or commissions
charged by the account custodian and broker or any other charges, which are payable
separately by the client. Please see Item 12 below regarding the firm’s brokerage
practices.

Management fees are payable quarterly in arrears. The first payment is assessed and
due at the end of the first calendar quarter that the account is opened, subject to pro
rata adjustment based upon the number of days the account is open during the
quarter. Subsequent payments are assessed and due on the first day of each calendar
quarter for the prior quarter based on the value of the account assets as of the close of
business on the last business day of the prior quarter. The portfolio management fee is
subject to pro rata adjustment for additions and withdrawals greater than $10,000
made to the account during the quarter. All fees are deducted directly from the client’s
account by the account custodian and paid directly to AMI unless a prior arrangement
has been agreed to with AMI. Client should be aware of their responsibility to verify the
accuracy of AMI’s fees, as the custodian will not determine whether the fee has been
properly calculated.

Fees are negotiable (higher or lower) based on such factors as complexity, portfolio

size, or other special circumstance, at the sole discretion of AMI.

In addition to transaction fees, clients will pay separately incurred expenses (i.e., fund
management fees and other fund expenses) if investing in or holding a mutual fund, index
fund, exchange traded fund, or money market fund. These separately incurred expenses
are disclosed in the fund’s prospectus. AMI does not receive any portion of these
separately incurred expenses.

Clients should review the fees charged to their account(s) to fully understand the total
amount of all fees charged. Clients should understand that lower fees for comparable
services may be available from other investment advisers, custodians and/or broker-
dealers.

Item 7. Types of Clients

Description

AMI provides portfolio management services for individuals, high net worth individuals,
trusts, estates, charitable organizations, endowments, professional organizations,
religious organizations, corporations and other business entities, pension and profit-
sharing plans, and private pooled funds.

Account Minimums

The minimum account size and fees are outlined in Item 5 above. The minimum
account size and fee can be waived for new or existing clients, at the sole discretion of
AMI.

Accounts obtained through wrap programs are subject to the investment minimums
of the particular wrap program.

There may be times when certain restrictions are placed by a client which prevent us
from accepting or continuing to service a client’s account. AMI reserves the right to not
accept and/or terminate a client’s account if it feels that the client-imposed restrictions
would limit or prevent it from meeting and/or maintaining its objectives.