Peak Investment Advisors Inc

Item 5: Fees and Compensation

Management fees are based on a percentage of assets under management. Annual
management fees are typically 1.0% of assets, but may be more or less, depending upon
the level of service provided, account size and type of investments. Client accounts are
usually managed on a fully discretionary basis. Financial consultation is also available
on an hourly basis of $300 or as negotiated. Investment management fees are
negotiable.

Management fees are calculated quarterly and are due at the end of each calendar quarter.
Fees are usually deducted directly from client accounts, although some clients are
invoiced and pay from outside their investment accounts. Clients may choose which
method they prefer and this option is disclosed in the client contract letter. Regardless of
which method is used, clients receive a bill/invoice quarterly that shows how the fee is
calculated and whether it will be deducted from their account or is due and payable
directly from the client.

Clients incur fees other than investment management fees, such as brokerage fees (see
Item/Section 12) and fees imbedded in mutual funds or Exchange Traded Funds (ETF’s).
Peak attempts to minimize both brokerage fees (by using only discount brokers; such as
Charles Schwab & Co.) and mutual fund/ETF fees by choosing no load funds and ETF’s
with low internal management fees.

Clients are never required to pay any investment management fees in advance. Nor does
anyone at Peak accept compensation for the sale of securities or other investment
products. This policy is in contrast to many individuals that work for large brokerage
firms and insurance companies who are often compensated based on the sale of securities
or investment products such as mutual funds, annuities and life insurance policies.

Item 7: Types of Clients

Peak provides investment advisory, financial consulting, financial planning and tax
planning services primarily to individuals, families and businesses. Peak may also serve
pension funds, banks, trust, endowments and estates. Minimum client group size is
typically $500,000 although smaller accounts may be considered if the client
relationship is likely to lead to larger account balances in the future.