Pinnacle Portfolio Advisors LLC

Item 5        Fees and Compensation

                           INVESTMENT SUPERVISORY SERVICES ("ISS")
                           INDIVIDUAL PORTFOLIO MANAGEMENT FEES

Our annual fees for Investment Supervisory Services are based upon a percentage of assets under
management. Pinnacle may charge up to 1.78% of assets under management. For purposes of
determining value, securities and other instruments traded on a market for which actual transaction prices
are publicly reported are valued at the last reported sale price on the principal market in which they are
traded. In certain circumstances, our fees may be negotiated as detailed below under “Limited
Negotiability of Advisory Fees.”

We do not charge additional fees to work with your attorney and/or accountant. Our fee includes the time
and activities necessary to work with your attorney and/or accountant in reaching agreement on
solutions, as well as assisting them in implementation of all appropriate documents. We are not
responsible for attorney or account fees charged to you as a result of the above activities.

Compensation for our services will be calculated in accordance with what is set in the client agreement.
We may modify the terms of any agreement by written changes submitted to the client for signature.
While we strive to maintain competitive fees, the same or similar services may be available from other
firms at higher or lower fees. Pinnacle’s fees are paid from your account by the custodian when we submit
an invoice to them. If there is insufficient cash in your account to pay your fees, an equal balance of
securities in your portfolio may be sold to pay our fee. In addition to our fees, there may be custodial,
mutual fund or similar third-party management fees and charges.

Pinnacle’s fees are paid quarterly in advance and deducted from client custodian accounts. Our fee is
determined by taking the percentage rate we charge, divided by four, times the market value of the
account. The market value is the sum of the values of all assets in the account, not adjusted by any margin
debit. In cases where there are partial fees at the commencement or termination of our agreement, they
will be billed or refunded on a pro rata basis contingent on the number of days. Quarterly fee adjustments
for additional assets received into the account during a quarter or for partial withdrawals will also be
provided on the above pro rata basis.

Limited Negotiability of Advisory Fees: Although Pinnacle has established the aforementioned fee
schedule, we retain the discretion to negotiate alternative fees on a client-by-client basis. Client facts,
circumstances and needs are considered in determining the fee schedule. These include the complexity
of the client, assets to be placed under management, anticipated future additional assets; related
accounts; portfolio style, account composition, reports, among other factors. The specific annual fee
schedule is identified in the contract between the adviser and each client.

Discounts, not generally available to our advisory clients, are offered to family members and friends of
associated persons of our firm under certain circumstances.

GENERAL INFORMATION

Termination of the Advisory Relationship: A client agreement may be canceled at any time, by either
party, for any reason upon receipt of written notice. As disclosed above, certain fees are paid in advance

of services provided. Upon termination of any account, any prepaid, unearned fees will be promptly
refunded. In calculating a client's reimbursement of fees, we will pro rate the reimbursement according
to the number of days remaining in the billing period.

When an agreement is terminated, all assets may need to be transferred from the current custodian. You
will be responsible for paying all fees including full quarterly custodial administrative fees, account closure
fees, mutual fund fees and all trading costs due to the termination. The custodian may assess additional
fees for transfer of illiquid investments. If there is insufficient cash in the account, the liquidation of some
securities will be used to pay the fees. Prior to termination of an agreement, we can provide a good faith
estimate of these fees.

Mutual Fund Fees: All fees paid to Pinnacle for investment advisory services are separate and distinct
from the fees and expenses charged by mutual funds and/or ETFs to their shareholders. These fees and
expenses are described in each fund's prospectus. These fees will generally include a management fee,
other fund expenses, and a possible distribution fee. If the fund also imposes sales charges, a client will
pay an initial or deferred sales charge. A client could invest in a mutual fund directly, without our services.
In that case, the client would not receive the services provided by our firm 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 our fees to fully understand the total amount of fees to be paid by the client and to thereby
evaluate the advisory services being provided.

Additional Fees and Expenses: In addition to our advisory fees, clients are also responsible for the fees
and expenses charged by custodians and imposed by broker dealers, including, but not limited to, any
transaction charges imposed by a broker dealer with which an independent investment manager effects
transactions for the client's account(s). Please refer to the "Brokerage Practices" section (Item 12) of this
Form ADV for additional information.

Advisory Fees in General: Clients should note that similar advisory services may (or may not) be available
from other registered (or unregistered) investment advisers for similar or lower fees.

Limited Prepayment of Fees: Under no circumstances do we require or solicit payment of fees in excess
...

Item 7        Types of Clients

Pinnacle provides advisory services to the following types of clients:

                 •       Individuals (other than high net worth individuals)
                 •       High net worth individuals
                 •       Pension and profit sharing plans (other than plan participants)
                 •       Charitable organizations
                 •       Corporations or other businesses not listed above

                •        Other

Pinnacle does not have an account minimum. However, we may decline to accept clients with smaller
portfolios.