Setchfield Associates LLC

Item	5:	Fees	and	Compensation
The fees and other charges that you pay for advisory products or services that we offer will depend on
several different factors. The fees for advisory products are generally based on the “Assets under
Management.” This means the account is charged based on the account balance as the last business day
of the quarter. The fees are deducted directly from the account. The accounts are billed in arrears. The
account statements you receive from the custodian will reflect the deduction of these fees.

Some assets in your account may not be included in the calculation of your advisory fee. With approval
from our management, we will allow you to hold an asset in your advisory account without being
charged the advisory fee.

Management fees are negotiable at the sole discretion of SAM.

Fee Accounts:
Fees will range from .50% to 2.00% annually, and each client’s fee will be specified in their advisory
agreement.

Other Fees and Expenses
Based on the activity in your account, you may pay more or less for a managed account than if you had a
brokerage account or an account held directly with a mutual fund company. SAM will discuss which
option is appropriate for you.

Clients will incur transaction charges for trades executed by their chosen custodian. These transaction
fees are separate from our firm’s advisory fees and will be disclosed by the chosen custodian. 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 (i.e., fund management fees, initial or deferred sales charges, mutual fund sales loads,
12b-1 fees, surrender charges, variable annuity fees, IRA and qualified retirement plan fees, and other
fund expenses), 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 any portion of these fees.

Conflicts of Interest
SAM buys and sells securities that we also recommend to clients. This is a conflict of interest, in that we
may have the opportunity to receive a more favorable price than the client. SAM mitigates this conflict
by our policy of always giving the client the lowest price, or the same price that SAM received.

Steven Setchfield is licensed to sell insurance and may receive commission compensation from
insurance products that he recommends to clients. This is a conflict of interest. This conflict is mitigated
by the following:
    • SAM will always act in clients’ best interest, as required by our fiduciary duty;
    • SAM will disclose commission compensation from insurance products to clients;
    • Clients always have the right to decide whether to implement insurance recommendations; and
    • Clients always have the right to purchase insurance products through another agent, and are
        under no obligation to purchase through SAM.

Item	7:	Types	of	Clients
At SAM we provide investment advice for individuals, high net worth individuals, 401k plans, profit
sharing plans, corporations and businesses.

Account minimums
SAM does not impose an investment minimum for our services, however we reserve the right to reject
clients regardless of account size. Some of the institutional money managers may require an account
minimum.