Peregrine Investment Advisors LLC

Item 5           Fees and Compensation

   A.
                                   INVESTMENT ADVISORY SERVICES
         The client can determine to engage the Registrant to provide discretionary investment
         advisory services on a fee-only basis. The Registrant’s annual investment advisory fee is
         negotiable and shall generally be based upon a percentage (%) of the market value of the
         assets placed under the Registrant’s management (between 0.50% and 1.00%), as follows:

                           Market Value of Portfolio                    % of Assets
                                Initial $500,000                            1.00%
                                Next $500,000                               0.90%
                                Next $1,000,000                             0.80%
                                Next $1,000,000                             0.70%
                                Next $1,000,000                             0.60%
                                All additional amounts                      0.50%

    Fee Dispersion. Registrant, in its sole discretion, may charge a lesser investment advisory
    fee, or may otherwise waive or reduce its minimum asset requirements, 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, prior fee
    schedules, competition, negotiations with client, etc.).
    As result of the above, similarly situated clients could pay different fees. In addition,
    similar advisory services may be available from other investment advisers for similar or
    lower fees.

B. Clients may elect to have the Registrant’s advisory fees deducted from their custodial
   account. For such clients, both Registrant's Investment Advisory Agreement and the
   custodial/clearing agreement shall authorize the custodian to debit the account for the
   amount of the Registrant's investment advisory fee and to directly remit that management
   fee to the Registrant in compliance with regulatory procedures.

    In the limited event that the Registrant bills the client directly, payment is due upon receipt
    of the Registrant’s invoice. The Registrant shall deduct fees and/or bill clients quarterly in
    advance, based upon the market value of the assets on the last business day of the previous
    quarter.

C. As discussed below, unless the client directs otherwise or an individual client’s
   circumstances require, the Registrant shall generally recommend that Charles Schwab &
   Co., Inc. (“Schwab”) serve as the broker-dealer/custodian for client investment
   management assets. Broker-dealers such as Schwab charge brokerage commissions,
   transaction, and/or other type fees for effecting certain types of securities transactions (i.e.,
   including transaction fees for certain mutual funds, and mark-ups and mark-downs charged
   for fixed income transactions, etc.). The types of securities for which transaction fees,
   commissions, and/or other type fees (as well as the amount of those fees) shall differ
   depending upon the broker-dealer/custodian.

    While certain custodians, including Schwab, generally (with the potential exception for
    large orders) do not currently charge fees on individual equity transactions (including
    ETFs), others do.

    There can be no assurance that Schwab will not change their transaction fee pricing in the
    future. Schwab may also assess fees to clients who elect to receive trade confirmations and
    account statements by regular mail rather than electronically.

    In addition to Registrant’s investment management fee and any applicable brokerage
    commissions and/or transaction fees, clients will also incur, relative to all mutual fund and
    exchange traded fund purchases, charges imposed at the fund level (e.g., management fees
    and other fund expenses).

D. Registrant's annual investment advisory fee shall be prorated and paid quarterly, in
   advance, based upon the market value of the assets on the last business day of the previous
   quarter.

    The Investment Advisory Agreement between the Registrant and the client will continue in
    effect until terminated by either party by written notice in accordance with the terms of the
    Investment Advisory Agreement. Upon termination, the Registrant shall refund the pro-

         rated portion of the advanced advisory fee paid based upon the number of days remaining
         in the billing quarter.

   E. Neither the Registrant, nor its representatives accept compensation from the sale of
      securities or other investment products.

Item 7           Types of Clients

         The Registrant’s clients shall generally include individuals, trusts, estates and charitable
         organizations, high net worth individuals, corporations, etc. The Registrant generally
         requires a minimum asset level of $500,000 for investment advisory services.

         As discussed in Item 5 above, the Registrant, in its sole discretion, may charge a lesser
         investment management fee and/or waive or modify its minimum asset requirement 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,
         negotiations with client, etc.).