Private Advisory Group LLC

Item 5        Fees and Compensation
Investment Management Fees

We are compensated for our investment management services solely through advisory fees
based on a percentage of assets under management. All clients sign an Advisory Service
Agreement that specifies their fee schedule in Schedule B.

All advisory fees, including specific tiered rates and applicable breakpoints, are disclosed in
writing to each client before the relationship begins. Client assignment to each schedule is
based on the advisor managing the account and the timing of engagement. Our typical
schedule begins at 1.07% annually, while a secondary schedule begins at 1.35% annually.
Some clients who transferred to Private Advisory from other firms retain the rates they were
extended at the time of transition.
Clients managing non-standard assets receive additional guidance in Schedule C. For
detailed fee information, reference Item 5 and Item 6.

Item 7        Types of Clients
We provide investment advisory services to the following types of clients:

      Individuals (other than high net worth individuals);
      High net worth individuals;
      Trusts and estates of individuals and high net worth individuals;
      Charitable organizations;
      Corporations or other business entities not listed above.

Private Advisory imposes a minimum account size requirement of $500,000 of assets under
management. Clients who select a performance fee must have a minimum of $1 million in
our traditional asset-based management, in addition to $500,000 managed under the
performance fee arrangement. We may waive the minimum account size requirement in our
discretion or combine related accounts to achieve the minimum account size.