Peak American Investment Advisors Inc

Item 5    Fees and Compensation

Third-Party Advisory Program Services Fees
We are paid by the third-party advisor when we recommend you to them and you decide to open a managed
account. Third-party advisors pay us a portion of the investment advisory fee that they charge you for
managing your account. Fees paid to us by third-party money managers are generally ongoing. The third-
party money managers we recommend will not directly charge you a higher fee than they would have
charged without us introducing you to them. Third-party money managers establish and maintain their own
separate billing processes over which we have no control. In general, they will directly bill you and describe
how this works in their separate written disclosure documents.

Peak American IA Wealth Advisory Fees
Peak American IA will receive a portion of the fees as compensation for services based on the following fee
schedule:

         $0 - $250,000                  1.45%
         $250,001 - $500,000            1.25%
         $500,001 - $1,000,000          1.20%
         $1,000,001 - $1,500,000        1.00%
         $1,500,001 - $3,000,000        0.90%
         $3,000,001+                    0.85%

When services are provided through the sub-advisors’ platforms, the maximum annual fee for this program
will never exceed 2%. Sub-advisors retain up to 0.50% of this fee, depending on the model chosen. The
annual fee will be specified in your agreement with Peak American IA. We submit billing to Schwab, who
deducts fees from client accounts (per the management agreement). We then pay the sub-advisor monthly
in arrears. All fees are calculated based upon the average daily market value of the assets held in your
account over the billing period. A more detailed description of fees related to the sub-advisors’ managed
account programs is located in the disclosure brochure which will be provided to you when Peak American
IA offers services through the sub-advisors. Peak American IA may charge more or less for the same service
than other sub-advisor/investment advisor representatives of the sub-advisors. Fees are negotiable.

Financial Planning Fees
Peak American IA provides financial planning services under a fixed-fee arrangement. Fees are based on
several factors including time and labor, the nature and complexity of your situation, and any special
circumstances involved. The fixed fee for a financial plan is $2,900, with $1,450 due to start the planning
process and $1,450 due upon delivery of the financial plan (“Planning Fee”). We will typically complete your
plan within sixty (60) days after you sign the Financial Planning Agreement.

To the extent the client, within thirty (30) days of the execution of the Financial Planning Agreement,
engages Peak American IA to provide investment management services regarding the portfolio assets,
pursuant to the Peak American IA Portfolio Management Agreement (“Management Agreement”), Peak
American IA will refund the Planning Fee to the client. The client retains the right, for any reason, to
terminate their Financial Planning Agreement within the first five days after the client signs the Agreement
and receive a complete refund of any fee paid. Thereafter, clients who decide to end their relationship will
not be entitled to a refund as fees are considered earned. Clients who do not receive their financial plan
within sixty (60) days are entitled to a full refund. No refunds are given once the financial plan is completed
and delivered to the client unless another arrangement is mutually agreed upon.

Estate Planning Fees
The fixed fees for estate planning services are as follows:

        Trust (Individual or Married) – $1398.00 ($699 due upfront and $699 due at delivery)
        Basic Will (Individual) – $498.00 ($249 due upfront and $249 due at delivery)
        Basic Will (Married) – $996.00 ($498 due upfront and $498 due at delivery)

Fixed Estate Planning fees are paid via credit card or check.

Other Charges
Clients shall be solely responsible for all commissions and other transaction charges, and any charges
relating to the custody of securities in the account(s), such as brokerage commissions, mark-ups and mark-
downs, dealer spreads or other costs associated with the purchase and sale of securities, exchange fees,
option assignment or exercise fees, custodian fees, bank charges, interest, taxes, or other account(s)
expenses. In addition, shareholders of each mutual fund or exchange-traded fund in which the account(s)
may be invested will also be charged investment advisory fees and other expenses which are disclosed in
each fund’s prospectus or summary disclosure. Peak American IA does not share in any part of these
additional charges.

Other Compensation Received
Advisory agents of the Firm are also licensed insurance agents for Peak American Financial Group, Inc., a
registered insurance agency and affiliated firm of Peak American Financial Companies. If a financial plan
includes the recommendations to purchase insurance products and you act upon that recommendation or
buy insurance through our investment advisory agents, they receive a commission from insurance sales,
which includes life, accident, disability, and fixed annuities. Peak American IA does not charge management
fees on commission-based fixed index annuities. However, the advisory agent will receive commissions as
an insurance agent from the recommendation of any insurance product, like a fixed index annuity.

Commission may include additional sales awards or award trips. We will seek out the products of any
company, agency, or brokerage that have products fitting your needs. The client always has the right to
decide whether to act on insurance recommended by the investment advisory representative. If the client
decides to act, clients have the right to do so through the professional they choose.

Portfolio management clients are fee-based and are not assessed commissions generated from securities
...

Item 7     Types of Clients

Client Base
Our customer base consists of individuals.

Conditions for Account Management
We have imposed a minimum account size of $30,000 in assets to be managed. We can make an exception
to these minimums from time to time based on individual factors such as length of time the account has
been known, overall composition of the account, multiple accounts held with us, etc. This exception is in
our sole discretion.

Third-party advisors may impose a minimum dollar amount for initial client assets for the investment
advisory services as disclosed in the management agreement. These minimums may be waived at the third-
party money manager’s discretion. Please see third-party advisors ADV Part 2A for more information.