Hinchley Advisory Group LLC

Item 5 Fees and Compensation
Portfolio Management Services
Our fee for portfolio management services is based on a percentage of your assets we manage and is
set forth in the following fee schedule:

Assets Under Management                         Annual Fee
$50,000 or less                                   2.00%
$50,001 to $100,000                               1.50%
$100,001 to $250,000                              1.00%
$250,001 to $500,000                              0.75%
More than $500,000                                0.50%

This fee schedule is a straight tiered fee schedule. Meaning that your entire portfolio is billed at the rate
specified. For example, an account valued at $350,000 would be billed an annual fee of $2,625
($350,000 X 0.75%), or $656.25 per quarter ($350,000 X 0.75% X 0.25).

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 fees are not negotiable.

At our discretion, we may combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in your paying a reduced advisory fee
based on the available breakpoints in our fee schedule stated above.

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 the following requirements are met:

    • You provide our firm with written authorization permitting the fees to be paid directly from your

       account held by the qualified custodian.

    • We send you an invoice showing the amount of the fee, the value of the assets on which the
      fee is based, and the specific manner in which the fee was calculated.

    • The qualified custodian agrees to 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 reconcile our invoices with the statement(s) you receive from the qualified
custodian. If you find any inconsistent information between our invoice and the statement(s) you
receive from the qualified custodian please call our main office number located on the cover page of
this brochure.

Termination
You may terminate the portfolio management agreement without penalty within 5 days after signing the
agreement. After the 5 day period you may terminate the agreement upon 30-days' written notice to
our firm. In that event, 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. Refunds are not applicable since fees are
paid in arrears.

Additional Fees and Expenses
As part of our investment advisory services to you, we may invest, or recommend that you invest, in
mutual 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 (described in each fund's prospectus) to
their shareholders. These fees will generally include a management fee and other fund expenses.

Whenever possible and appropriate we will recommend no-load mutual funds which do not impose
additional transaction charges or fees. However, when we recommend mutual funds or other
securities, you will also incur transaction charges and/or brokerage fees when purchasing or selling
such investments. These charges and fees are typically imposed by the broker-dealer or custodian
through whom your account transactions are executed. We do not share in any portion of the
brokerage fees/transaction charges imposed by the broker-dealer or custodian. 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.

Compensation for the Sale of Securities or Other Investment Products
Bruce Hinchley is licensed as an independent insurance agent. Insurance products are only offered to
residents of states where Mr. Hinchley is currently licensed. Mr. Hinchley will earn commission-based
compensation for selling insurance products, including insurance products he sells to you. Insurance
commissions earned by Mr. Hinchley are separate and in addition to our advisory fees. This practice
presents a conflict of interest because, as an insurance agent, Mr. Hinchley has an incentive to
recommend insurance products to you for the purpose of generating commissions rather than solely
based on your needs. Please see our disclosure regarding Conflicts of Interest in Item 4 (Advisory
Business) above. However, you are under no obligation, contractually or otherwise, to purchase
insurance products through any person affiliated with our firm.

Item 7 Types of Clients
We offer investment advisory services to individuals, trusts, estates, charitable organizations,
corporations, and other business entities.

In general, we do not require a minimum dollar amount to open and maintain an advisory account;
however, we have the right to terminate your account if it falls below a minimum size which, in our sole
opinion, is too small to effectively manage.