Pinnacle Wealth Management LLC

Item 5: Fees & Compensation

    How We Are Compensated for Our Advisory Services

    Asset Management:
    Standard Fee Schedule:

                              Account Value       Annual Fee %
                               Up to $250,000        1.20%
                               Next $750,000         1.00%
                              Next $1,000,000        0.80%
                                 Thereafter          0.50%

    The ultimate fee is based on the scope of the engagement and is determined on a case-by-case basis.
    The asset management fee will be listed on Schedule A of the client agreement.

    Our firm’s fees are billed on a pro-rata annualized basis monthly in advance based on the value of
    your account on the last day of the previous month. Unless otherwise noted in writing, our firm bills
    on cash. Fees are adjusted on a monthly basis to account for withdrawals or deposits in excess of
    $10,000. Our fees may be negotiable depending on the client’s circumstance. Certain legacy clients
    may have a different fee schedule.

    Fees will be automatically deducted from your managed account. As part of this process, you
    understand and acknowledge the following:

         a) You provide written authorization permitting us to be paid directly from the managed
            account held by the independent custodian;
         b) Our firm sends a bill to the custodian indicating the amount of the fee to be paid from the
            client’s managed account;

ADV Part 2A – Firm Brochure                        Page 5                           Pinnacle Wealth Management, LLC

         c) Your independent custodian sends statements at least quarterly to you showing the market
            values for each security included in the assets and all disbursements in your account
            including the amount of the advisory fees paid to us;
         d) As required by paragraph (a)(2) of Rule 206(4)-2 under the Investment Advisers Act of 1940,
            we urge our clients to compare information provided in their statements with those from the
            qualified custodian in account opening notices and subsequent statements sent to the client.

    Separately Managed Accounts, Sub-Advisors, and or Third-Party Money Managers:
    Fees assessed to Asset Management clients whose portfolios incorporate third party money
    managers, sub advisors and/or separately managed accounts (collectively “Third Parties”) will not
    be any higher than those that do not incorporate such services. Our firm will debit its fees for the
    Asset Management service as laid out in the executed advisory agreement between the client and our
    firm. That fee shall be exclusive of any fees assessed by the chosen Third Party. The Third Parties we
    recommend will not charge a higher fee than they would have otherwise. Third Parties establish and
    maintain their own billing procedures over which our firm has no control. In general, Third Parties
    assess fees directly and provide a copy of the appropriate disclosure documents that explain their
    billing procedures.

    Financial Planning & Consulting:
    Our firm charges on an hourly or flat fee basis for financial planning and consulting services. The total
    estimated fee, as well as the ultimate fee charged, is based on the scope and complexity of our
    engagement with the client. The fees for this service are negotiable. The maximum hourly fee to be
    charged will not exceed $250. Flat fees will not exceed $5,000. The fee-paying arrangements will be
    determined on a case-by-case basis and will be detailed in the signed consulting agreement. Our firm
    will not require a retainer exceeding $1,200 when services cannot be rendered within 6 months.

    Other Types of Fees & Expenses

    Clients will incur transaction charges for trades executed in their accounts. These transaction fees
    are separate from our fees and will be disclosed by the firm that the trades are executed through.
    Charles Schwab & Co., Inc. (“Schwab”), does not charge transaction fees for U.S. listed equities and
    exchange traded funds.

    Clients may also pay holdings charges imposed by the chosen custodian for certain investments,
    charges imposed directly by a mutual fund, index fund, or exchange traded fund, which shall be
    disclosed in the fund’s prospectus (e.g., fund management fees, distribution fees, surrender charges,
    variable annuity fees, IRA and qualified retirement plan fees, mark-ups and mark-downs, spreads
    paid to market makers, fees for trades executed away from custodian, wire transfer fees and other
    fees and taxes on brokerage accounts and securities transactions). Our firm does not receive a
    portion of these fees.

    Our firm offers a short-term strategy called “Cash For Now” which is used when a client wishes to
    reduce risk during moments of market volatility and temporarily hold a large cash position or cash
    equivalent position. Our firm will charge its regular management fee at the same break points as
    described above to Clients utilizing the Cash For Now strategy, just as our firm bills its management
    fee to clients utilizing other investment strategies.

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    Termination & Refunds

    We charge our advisory fees monthly in advance. In the event that you wish to terminate our services,
    we will refund the unearned portion of our advisory fee to you. You need to contact us in writing and
    state that you wish to terminate our services. Upon receipt of your notice of termination, we will
    proceed to close out your account and process a pro-rata refund of unearned advisory fees.

    Commissionable Securities Sales

    In order to sell securities for a commission, our supervised persons are registered representatives of
...

Item 7: Types of Clients & Account Requirements

    We have the following types of clients:
       • Individuals
       • High Net Worth Individuals;

    Our requirement for opening and maintaining accounts or otherwise engaging us is a minimum
    account balance of $500,000 for our Asset Management service. This minimum account balance
    requirement may be negotiable and is dependent on the client’s existing circumstance.

ADV Part 2A – Firm Brochure                        Page 7                           Pinnacle Wealth Management, LLC