Appalachian Capital Management Ltd

Item 5 Fees and Compensation
Portfolio Management Services
Our fee for portfolio management services is based on a percentage of your assets we manage at the
annual rate of 1% of the market value of the managed portfolio. The market value is determined by the
client’s custodian.

Our annual portfolio management fee is billed and payable quarterly in arrears based on the value of
your account on the last day of the quarter. If the portfolio management agreement is executed at any
time other than the first day of a calendar quarter, our fees will apply on a pro rata basis, which means
that the advisory fee is payable in proportion to the number of days in the quarter for which you are a
client. Our advisory fee is negotiable, depending on individual client circumstances.

We will deduct our fee directly from your account through the qualified custodian holding your funds
and securities. We will deduct our advisory fee only when you have given our firm written authorization
permitting the fees to be paid directly from your account held by the qualified custodian. The qualified
custodian will send you a statement, at least quarterly, indicating all amounts dispersed from your
account including the amount of the advisory fee paid directly to our firm. We encourage you to review
this information and contact our firm and/or the qualified custodian with any questions.

You may terminate the portfolio management agreement upon written notice to our firm. You will incur
a pro rata charge for services rendered prior to the termination of the portfolio management
agreement, which means you will incur advisory fees only in proportion to the number of days in the
quarter for which you are a client.

Additional Fees and Expenses
As part of our investment advisory services to you, we may invest, or recommend that you invest, in
mutual funds and exchange traded funds. The fees that you pay to our firm for investment advisory
services are separate and distinct from the fees and expenses charged by mutual funds or exchange
traded funds (described in each fund’s prospectus) to their shareholders. These fees will generally
include a management fee and other fund expenses. To fully understand the total cost you will incur,
you should review all the fees charged by mutual funds, exchange traded funds, our firm, and others.
For information on our brokerage practices, please refer to the “Brokerage Practices” section of this
brochure.

Item 7 Types of Clients
We offer investment advisory services to individuals, high net worth individuals, and charitable
organizations.

The Adviser requires a minimum relationship size of $250,000 for clients retaining Portfolio
Management Services. This minimum is waived for IRA and Roth IRA accounts. The Adviser may
waive the minimum relationship size for special situations such as for family members, pre-existing
relationships, unique circumstances, or where the client is likely to meet the minimum relationship size
within a reasonable time period. The Adviser reserves the right to decline services to any person or
firm and for any reason.