Three Peaks Capital Management LLC

ITEM 5 - FEES AND COMPENSATION

The fees for accounts are based on an annual percentage of assets under management and are applied to the
account asset value on a pro-rated basis, billed quarterly in arrears. The first quarterly fee will be based upon
the date the account is accepted for management by execution of the advisory agreement by Three Peaks or
when the assets are transferred through the last day of the previous calendar quarter. Fees are not assessed on
cash in an account for the first sixty days from account opening. Thereafter, the fee will be based on the
average assets value calculated on each Friday in the quarter and at month end. During the liquidation of an
account, (i.e., the time period between notice of termination of the advisory agreement and the termination
of the advisory agreement), fees are not assessed on the cash in an account.

Fees charged will range depending on the complexity and nature of your portfolio. Our maximum annual
advisory fee rate is 1.50%, calculated as a percentage of your assets under management. Advisory fees are
negotiated with you, however, and may therefore vary with other clients. Our advisory fee rate is set forth

in your advisory agreement.

For comparable services, other investment advisers may charge higher or lower fees than those charged by
us.

Quarterly, you will receive an invoice of management fees. You are expected to pay your quarterly
management fee to us within 30 days of the invoice. Investment advisory contracts provide termination
provisions with or without cause within given stipulated time periods. Upon termination, you are responsible
for monitoring the securities in your account, and we, as investment adviser, will have no further obligation
to act or advise with respect to those assets.

                                    Additional Fees and Expenses:

In addition to the advisory fees paid to our Firm, clients also incur certain charges imposed by other third
parties, such as broker-dealers, custodians, trust companies, banks and other financial institutions
(collectively “Financial Institutions”). These additional charges typically include brokerage commissions,
mark-ups or mark-downs on security transactions, transaction fees, exchange fees, SEC fees, custodial fees,
advisory and administrative expenses of any Exchange Traded Funds (“ETFs") purchased for client accounts,
odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on
brokerage accounts and securities transactions. Three Peaks’ brokerage practices are described at length in
Item 12, below. Neither our Firm nor its supervised persons accept compensation for the sale of securities or
other investment products. Further, our Firm does not share in any of these additional fees and expenses
outlined above.

ITEM 7 - TYPES OF CLIENTS

We offer advice to individuals, high net worth individuals, trusts, charitable organizations, foundations,
endowments, pension plans and corporations. Although we do not require a specific minimum account size
to open or maintain an account, sufficient assets are required to utilize our investment strategies. As
necessary, we will determine with the client a minimum amount depending on the client’s proposed
investment strategy.