Acute Investment Advisory LLC

Fees and Compensation - Item 5

 Portfolio Management Services
 AIA charges a portfolio management that is based on a percentage of client assets under management. Account
 management fees are calculated monthly, in arrears, based on the average daily market value of client’s account
 during the preceding month as reported by client’s account custodian. The exact payment arrangement will be
 listed in the Investment Management Agreement signed by the firm and the client.

 At this time, our fees are based on the following blended fee schedule:

 Assets Under Management                       Advisory Fee
 First $500,000                                1.30%
 Next $500,000                                 1.25%
 over $1,000,000                               1.20%

 The fee is deducted from the client's account held at the custodian. Either AIA or the sub adviser calculates the
 fee and debits such fees from the client’s custodial account. If insufficient cash is available to pay such fees,
 securities in an amount equal to the balance of unpaid fees will be liquidated to pay for the unpaid balance. In
 limited cases, we may invoice the client directly for the payment of fees. The fee listed above includes the
 compensation received by the model provider and the sub adviser. We may modify the fee at any time upon 30
 days’ written notice.

Acute Investment Advisory, LLC
Form ADV Part 2A Brochure

 For held away assets managed through Pontera, Pontera does not offer us the ability to deduct fees from the
 account. As such, fees for the management of held away assets will either be paid directly by the Client or
 deducted from another account that we manage for the Client at the qualified custodian(s) recommended by our
 firm.

 Our annual fee is exclusive of, and in addition to brokerage commissions, transaction fees, and other related costs
 and expenses which will be incurred by the client. However, we will not receive any portion of the commissions,
 fees, and costs. Please see Item 12 – Brokerage Practices for further information on brokerage and transaction
 costs.

 At the inception of investment management services, the first month’s fees will be calculated on a pro-rata basis.
 The Investment Management Agreement between AIA and the client will continue in effect until either party
 terminates the Investment Management Agreement in accordance with the terms of the Investment
 Management Agreement. Refunds are not applicable because the fee is payable in arrears.

 Third Party Adviser (TPAs) Fees
 AIA will perform management searches of various independent registered investment advisers for referral to AIA
 clients. AIA will share in the fee paid to the TPA. The management fee is disclosed in the TPA's disclosure
 documents. These fees may or may not be negotiable. AIA's compensation may differ depending upon the firm’s
 individual agreement with each TPA. AIA or its Associated Persons may have an incentive to recommend one TPA
 over another TPA with whom it has less favorable compensation arrangements or other advisory programs
 offered by TPAs with which it has no compensation arrangements.

 Additional Information about Fees and Expenses
 The fees AIA charges are negotiable based on the amount of assets under management, complexity of client goals
 and objectives, and level of services rendered. As described above, the fees are charged as described and are not
 based on a share of capital gains of the funds of an advisory client. All fees paid to AIA for investment advisory
 services are separate and distinct from the fees and expenses charged by mutual funds or exchange traded funds
 to their shareholders. These fees and expenses are described in each fund's prospectus. These fees generally
 include a management fee, other fund expenses, and a possible distribution fee. If the fund also imposes sales
 charges, a client may pay an initial or deferred sales charge. A client could invest in a mutual fund directly, without
 the services of AIA. In that case, the client would not receive the services provided by AIA which are designed,
 among other things, to assist the client in determining which mutual fund or funds are most appropriate to each
 client's financial condition and objectives. Accordingly, the client should review both the fees charged by the funds
 and the fees charged by AIA to fully understand the total amount of fees to be paid by the client and to thereby
 evaluate the advisory services being provided.

 Negotiability of Fees: We allow Associated Persons servicing the account to negotiate the exact investment
 management fees within the range disclosed in our Form ADV Part 2A Brochure. As a result, the Associated Person
 servicing your account may charge more or less for the same service than another Associated Person of our firm.
 Further, our annual investment management fee may be higher than that charged by other investment advisors
 offering similar services/programs.

 Billing on Margin: Unless otherwise agreed in writing, the gross amount of assets in the client’s account, including
 margin balances, are included as part of assets under management for purposes of calculating the firm’s advisory
 fee. Clients should note that this practice will increase total assets under management used to calculate advisory
 fees which will in turn increase the amount of fees collected by our firm. This practice creates a conflict of interest
 in that our firm has an incentive to use margin in order to increase the amount of billable assets. At all times, the
 firm and its Associated Persons strive to uphold their fiduciary duty of fair dealing with clients. Clients are free to

Acute Investment Advisory, LLC
Form ADV Part 2A Brochure

 restrict the use of margin by our firm. However, clients should note that any restriction on the use of margin may
 negatively impact an account’s performance in a rising market.
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Types of Clients - Item 7

 We provide advisory services to a variety of types of clients including individuals, trusts, individual’s pension
 plan accounts, and retirement plan trustees. We do not currently impose a minimum account size requirement.

                      Methods of Analysis, Investment Strategies and Risk of Loss - Item 8

 Asset allocation models used by the sub advisers and/or other third-party model providers (listed under Item 4
 above) are developed in accordance with investment programs developed by these entities. Clients should refer
 to the relevant sub advisers' and/or third-party model provider’s brochures for more information about the
 methods of analysis and investment strategies used by those firms.

 The following are different methods of analysis that we may use when providing you with investment advice:

     •   Fundamental analysis is a method of evaluating a company or security by attempting to measure its
         intrinsic value. In other words, trying to determine a company’s or a security’s true value by looking at
         all aspects of the business, including both tangible factors (e.g., machinery buildings, land, etc.) and
         intangible factors (e.g., patents, trademarks, “brand” names, etc.). Fundamental analysis also involves
         examining related economic factors (e.g., overall economy and industry conditions, etc.), financial
         factors (e.g., company debt, interest rates, management salaries and bonuses, etc.), qualitative factors
         (e.g., management expertise, industry cycles, labor relations, etc.), and quantitative factors (e.g., debt-
         to-equity and price-to-equity ratios). The end goal of performing fundamental analysis is to produce a
         value that an investor can compare with the security's current price in hopes of determining what sort
         of position to take with that security (underpriced = buy, overpriced = sell or short). This method of
         security analysis is considered the opposite of technical analysis. Fundamental analysis is about using
         real data to evaluate a security's value. Although most analysts use fundamental analysis to value stocks,
         this method of valuation can be used for just about any type of security.

     •   Technical analysis is a technique that relies on the assumption that current market data (such as charts
         of price, volume, and open interest) can help predict future market trends, at least in the short term. It
         assumes that market psychology influences trading and can predict when stocks will rise or fall. Technical
         trading models are mathematically driven based upon historical data and trends of domestic and foreign
         market trading activity, including various industry and sector trading statistics within such markets.
         Technical trading models, through mathematical algorithms, attempt to identify when markets are likely
         to increase or decrease and identify appropriate entry and exit points. The primary risk of technical
         trading models is that historical trends and past performance cannot predict future trends, and there is
         no assurance that the mathematical algorithms employed are designed properly, updated with new data,
         and can accurately predict future market, industry, and sector performance.

 We use one or more of the following investment strategies when advising you on investments:

     •   Long Term Purchases – securities purchased with the expectation that the value of those securities will
         grow over a relatively long period, generally greater than one year. Using a long-term purchase strategy
         generally assumes the financial markets will go up in the long-term which may not be the case. There is
         also the risk that the segment of the market that you are invested in or perhaps just your particular
         investment will go down over time even if the overall financial markets advance. Purchasing investments

Acute Investment Advisory, LLC
Form ADV Part 2A Brochure

          long-term may create an opportunity cost - "locking-up" assets that may be better utilized in the short-
          term in other investments.

     •    Short Term Purchases – securities purchased with the expectation that they will be sold within a relatively
          short period of time, generally less than one year, to take advantage of the securities' short-term price
          fluctuations. Using a short-term purchase strategy generally assumes that we can predict how financial
          markets will perform in the short-term which may be very difficult and will incur a disproportionately
          higher amount of transaction costs compared to long-term trading. There are many factors that can
          affect financial market performance in the short-term (such as short-term interest rate changes, cyclical
          earnings announcements, etc.), but they may have a smaller impact over longer periods.

     •    Trading – securities are sold within 30 days. The principal type of risk associated with trading is market
          risk. There can be no assurance that a specific investment will achieve its investment objectives and past
          performance should not be seen as a guide to future returns. The value of investments and the income
          derived may fall as well as rise and investors may not recoup the original amount invested. Other factors,
          such as changes in exchange control regulation, tax laws, withholding taxes, international, political and
          economic developments, and government, economic or monetary policies, may affect investments as
          well. Additionally, trading is speculative. Market movements are difficult to predict and are influenced
          by, among other things, government trade, fiscal, monetary and exchange control programs and policies;
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