AMI Investment Management Inc

ITEM 5 – FEES AND COMPENSATION

The annual fee charged to a client is computed as a percentage of the value of the assets under
management on the last day of the preceding quarter. Such fees are payable quarterly in advance and
are deducted from the client’s account unless the client requests to be billed directly. AMI’s fee
schedule is as follows:
                                 Equity/Balanced Accounts

                                  1.0% of the first $ 2.5 million
                                  .80% of the next $ 2.5 million
                                  .60% of the next $ 5 million
                                  .40% of the balance

Prorated fees are charged at the inception of a signed investment advisory agreement. Fees are
refunded, at a prorated rate, to the date of termination if the client terminates their relationship with
AMI. Clients pay all additional expenses related to an account, including custodian fees, brokerage
charges and commissions and taxes. AMI regards its fees as non-negotiable, though we retain the right
to make exceptions to this policy. AMI generally does not charge for any other services associated with
the management of the client’s account, such as retirement planning.

Certain assets under management may be invested in mutual funds or similar investment structures.
Mutual fund companies pay advisory fees to their fund managers. The impact of this management fee is
the reduction of the funds’ net asset value. Therefore, clients pay two levels of advisory fees for assets
invested in mutual funds, one directly to AMI and one indirectly to the managers of the mutual funds
held in their portfolio.

AMI does not share in any of the mutual fund’s compensation and is focused on the performance of the
fund net of any fund manager fees. AMI does not accept compensation for the sale of securities or any
other investment product. Though AMI may make exceptions, we intend to utilize no-load or load-
waived funds exclusively.

AMI will use any broker dealer at the request of a client. However, AMI may suggest brokers to clients.
For more information on AMI’s brokerage relationships, please see Item 12.

AMI generally does not charge any extra fees for financial planning services and instead includes the
services as part of the core investment advisory relationship. In select cases, AMI may charge a fixed
retainer for services rendered. Such fees are based on the complexity of the services required, but
generally do not exceed $5,000, although AMI is not restricted from charging fees in excess of this for
highly complex cases. The agreed upon fee for financial planning services will be billed quarterly to the
client at the end of each quarter.

ITEM 7 – TYPES OF CLIENTS

AMI provides services to a variety of types of investment clients, including the following:

    ▪   Individuals (other than high net worth individuals and includes trusts, estates, IRAs and 401(k)
        plans)
    ▪   High net worth individuals (includes trusts, estates, IRAs and 401(k) plans)

       ▪    Pension and profit-sharing plans
       ▪    Charitable organizations and non-profits
       ▪    Corporations