Apple & Associates

ITEM 5: FEES AND COMPENSATION
Investment Management Services
Advisory Fees & Billing Practices

Fees for investment management services are calculated as a percentage of assets under management.
These fees are billed quarterly in arrears, based on the assets under management as of the last day of the
calendar quarter. Our standard fee schedule is:

                Account Value                                          Annual Fee

                Up to $500,000                                          1.50%
                $500,001 to $999,999                                    1.25%
                $1,000,000 to $4,999,999                                1.00%
                $5,000,000 to $6,999,999                                0.75%
                $7,000,000 to $9,999,999                                0.50%
                Assets over $10,000,000                                Negotiable

Fees for assets over $10 million are determined on a case-by-case basis. We consider total amount over
$10 million threshold, the investment style to be used and client input.

You may provide authorization for us to deduct our fees directly from your investment account.
Important information about the deduction of management fees:

       You must provide authorization for us to deduct fees by initialing the appropriate section of our
        contract.

       You will receive a detailed invoice each quarter which outlines our fees and how they are
        calculated at the same time we request payment from the custodian.

       You will receive a statement from your custodian which shows all transactions in your account,
        including the deduction of our fees.

       You are responsible for reviewing the accuracy of the fees being billed, as the custodian will not
        do so.

You may elect to pay by check rather than having fees deducted directly from the client account.

You may end our advisory relationship by providing 30 days written notice. We will prorate the advisory
fees received through the termination date and send you an invoice for the advisory fees due.

Other Costs Involved

In addition to our advisory fee shown above, you are responsible for paying fees associated with investing
for your account. These fees include:

     mutual fund loads (if applicable). These charges are paid to brokers as a form of commission.

     management fees for ETFs and mutual funds. These are fees charged by the managers of the ETF
      or mutual fund and are a portion of the expenses of the ETF or mutual fund.

     brokerage costs and transaction fees for any securities or fixed income trades. These are
      generally charged by your custodian and/or executing broker.

Additional information about brokerage costs and services is provided in “Item 12: Brokerage Practices.”

Financial Planning
We provide financial planning services for an hourly fee of up to $150. We negotiate our fee with you
based on the scope and complexity of the requested services; all fees are disclosed in the Financial
Planning Agreement. We require that you deposit 25% of the estimated fee upon signing the Financial
Planning Agreement. You will receive an invoice upon completion of the financial plan for the balance
of fees due. You may pay for financial planning services by check or cash.

You may cancel our financial planning agreement at any time by providing written notice. Upon
cancellation, we will calculate the amount due based on the time spent prior to receiving notice. If the
invoice amount is less than the deposit, a refund will be provided to you. If the amount due is greater
than the deposit, we will provide you with an invoice for the additional fees. This invoice is payable upon
receipt.

We have a conflict of interest. When you implement the financial plan through us, we receive the
customary fees as disclosed in the following section. You are not required to employ us to implement the
financial plan, or implement the plan, or any portion of it, at all.

We believe the fees mentioned above are competitive; however you may be able to obtain similar services
from other sources at a lower price.

Conflicts of Interest

Daniel Apple, Dean Bardon and Liam Apple are insurance agents registered Asset Marketing Systems
Insurance Services, LLC (“Asset Marketing”). If you elect to engage one of these individuals to
implement insurance recommendations, he will receive the normal and customary commissions.

Clients are under no obligation to purchase or apply for any insurance products, or to use Dan Apple,
Dean Bardon or Liam Apple as the agent for insurance products purchased. If clients decide to purchase
or apply for insurance, or use either individual as the broker for insurance products, a conflict exists
between the interests of Apple & Associates and the interests of the client. Apple & Associates
acknowledges this conflict and will perform in accordance with its fiduciary duty to act in the best interest
of the client.

ITEM 7: TYPES OF CLIENTS
We provide investment advice to individuals, trusts and pension plans.

Generally, we require that you maintain $100,000 under management with us. However, we may waive
that minimum at our sole discretion.