Peterson Financial Services LLC

Item 5   Fees and Compensation

Peterson Financial Services, LLC levies fees in one of two ways: as a percentage of assets under
management in the investment portfolios, and hourly fees for advisory and analysis work. These
fees depend on the category of account the client is having managed.

Hourly fees are $220 per hour.

Standard Fee Schedule:

Market Value of Portfolio                                   Annual Rate                     Quarterly Rate
First            $100,000                                   1.50%                            0.375%
Next             $400,000                                   1.25%                            0.3125%
Next             $500,000                                   1.00%                            0.25%
Next             $2,000,000                                 0.75%                            0.1875%
Next             $2,000,000                                 0.50%                            0.125%
Over             $5,000,000                                 Negotiable
Billed quarterly in advance. Mid-cycle inflows and outflows will have pro-rata fee adjustments made.

In these portfolios, the client has the option of selecting the fees either be deducted from the
money market balance in each separate account, or paying the firm directly. In either case, the
client is provided a fee invoice which identifies either that fees will be deducted, or that there is a
balance due in the case of directly-paid fees.

Open Architecture Qualified Plan Fee Schedule:

Base Plan Advice = 0.60% annually, 0.15% quarterly
Managed Account Service = 0.80% annually, 0.20% quarterly
Billed quarterly in arrears. Mid-cycle inflows and outflows will have pro-rata fee adjustments
made unless waived by the Advisor.
These fees are always deducted from the client account balance by the record keeper.

Miscellaneous Fees:

Additionally, management of the sub-accounts in variable annuities, or other such investment
vehicles where fee deductibility is not provided by the investment company, is done at 1.0%
annually, billed quarterly in advance at 0.25%, and the client pays the firm directly.

These fee schedules are negotiable, but only altered in very rare circumstances.

Potential Fees Levied by Others:

If individual stocks, bonds, or exchange-traded funds are purchased for clients, the brokerage
firm that custodies the assets and we trade through will levy a trading commission. Depending on
the mutual fund placed in a client account, that broker may levy a transaction fee. Depending on
the broker and type of account, other fees such as custodial fees, record keeping fees,
administration fees for qualified plans, and mortality and expense charges in annuities may be
levied against the transaction or balance. These fees are all disclosed in the qualified plan set up
paperwork provided by the record keeper and third-party administrator. All mutual funds,
regardless of the broker the trades are placed through charge operating, maintenance and expense
charges, which are levied against the net asset value (per share price) of the fund. No portion of
any of these miscellaneous fees levied by these third parties is provided to Peterson Financial
Services, LLC. Our only compensation is the fee we charge and invoice the client for.

In the case of the fee schedules above where fees are paid in advance, upon advance written
notice and terms in the service agreement of termination, a pro-rata refund of fees is paid back to
the client for the unused portion of the quarter. This is calculated by taking the remaining
number of days left in the billing period after termination and dividing it by the total number of
days in that billing cycle, and applying this product to the fee that was paid for the period.

Peterson Financial Services, LLC receives no fees or compensation for the sale of securities or
other investment products, including asset-based sales charges or service fees from the sale of
mutual funds or any other investment vehicle. Peterson Financial Services, LLC receives no
referral fees for referring clients to other advisors. None of the firm’s revenue from advisory
clients results from commissions, or any other compensation from people other than the client.
Any of the investment products the firm places client funds in may be bought by the client
through other brokers, agents, or companies not affiliated with the firm.

Item 7     Types of Clients

Individuals and retirement plans make up the majority of clients of Peterson Financial Services,
LLC. The firm also manages accounts for corporations’ non-retirement fund accounts and trusts.
The firm does not provide investment management to other investment companies.

While Peterson Financial Services, LLC prefers accounts of $100,000 or more for efficiency
reasons, the firm does not have a rigid account minimum standard. There are no special
requirements for opening and maintaining an account.