Center for Wealth Management LLC

ITEM 5 FEES AND COMPENSATION

Financial Planning and Hourly Consulting Services
For these services, the fee is negotiated between the IAR and client and the amount of the fee
is as stated in the client agreement. The fee is paid to CWM, and CWM compensates the IAR
based on the agreement between CWM and the IAR. For financial planning, clients pay either
on an hourly basis or a per plan basis (flat rate fee). The hourly charge is a maximum of $400
per hour and the flat rate fee ranges from $0 to $15,000. On a case-by-case basis, CWM also
may charge a higher fee depending upon the complexity of the plan. The client may elect to pay
the fee upon execution of the client agreement, upon delivery of the written financial plan, or a
combination of up front and in arrears. For hourly consulting services, clients pay an hourly

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charge, up to a maximum of $400 per hour as negotiated between the IAR and client. The client
may elect to pay the fee upon execution of the client agreement or at the time of consultation
with the IAR.

Clients should understand that the financial planning or hourly consulting fee client negotiates
with IAR may be higher than the fees charged by other investment advisors for similar services.
This is the case, in particular, if the fee is at or near the maximum fees set out above. The IAR is
responsible for determining the fee to charge each client based on factors such as total amount
of assets involved in the relationship, the complexity of the planning services, and the number
and range of supplementary advisory and client-related services to be provided. Clients should
consider the level and complexity of the planning services to be provided when negotiating the
fee with IAR. Clients pay the financial planning fee by check made payable to Center for Wealth
Management LLC.
For financial planning and hourly consulting services, the client may terminate the client
agreement without penalty (full refund) within five days of execution. After the five day period,
the client may terminate the client agreement at any time, and may request a refund of
unearned fees, if any, based on the time and effort completed prior to termination of the
agreement. The client agreement terminates upon delivery of the plan for financial planning,
and upon final consultation with the client for hourly consulting. No refunds will be made after
completion of the plan or delivery of the consulting services, except when the number of actual
hours is less than the estimated number of hours quoted in the client agreement.

Financial planning clients are not under any obligation to engage our representatives in their
LPL registered representative capacity when considering implementation of advisory
recommendations. The implementation of any or all recommendations is solely at your
discretion. In addition, your representative, as an insurance agent or broker of various
insurance companies, can buy investment products (insurance) for separate and typical
compensation for any client requesting this additional service. Commissions charged for these
products may be higher or lower than commissions you may be able to obtain if transactions
were implemented through another insurance agent or broker/dealer. You may engage
individuals from non-affiliated broker/dealers to implement the advisory recommendations.
The implementation of any or all recommendations is solely at your discretion. In that case, you
would not receive the services provided by your representative.

In addition to the advisory fees disclosed in your advisory agreement or commissions you pay
for the purchase of securities and insurance products, your representative may receive
compensation, including bonuses and non-cash compensation, for selling certain securities or
other investment products. Examples of non-cash compensation may include the receipt of due
diligence and/or marketing allowance payments from certain sponsors. While the
arrangements with each sponsor may vary, each product sponsor may pay a due diligence or
marketing allowance fee based upon the amount of assets held at the sponsor or on the gross
amount of each sale, depending upon the product. In certain cases, additional payments are
paid or directed to LPL for selling these products. This may create a conflict of interest based on
the amount of compensation LPL receives when recommending one non-publicly traded
product over another. As a result, certain incentives and conflicts of interest exists for your

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representative if you buy certain products or services recommended by your representative.
We encourage you to review this ADV closely and discuss any conflicts of interest with your
representative.

Managed Account Services and Fees
We charge an annual management fee for investment management services through Custom
Investment Management I and II. Your representative negotiates fees with you based on the
complexity of your financial situation and the services that are provided; the experience and
standard fees charged by your representative; and the nature and total dollar asset value of the
assets maintained in your account. The maximum annualized management fee for each
program is (The following fees vary based on account size and/or aggregate of client accounts):
Custom Investment Management I and II (Wrap and Non-Wrap Program) 2.5%

The management fees are payable quarterly in advance and management fees are
automatically deducted from the client’s account according to an authorization provided in the
Client Agreement.

Management fees will be calculated, accrued, and due quarterly in advance. The periodic fee is
based on the quarter-end value of the Account as reported by its custodian. The first quarter’s
fee will be based on the Account’s initial value and prorated for the number of days the account
will be managed in the quarter.
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ITEM 7 TYPES OF CLIENTS
CMW’s advisory services are available for individuals, individual retirement accounts (“IRAs”),
banks and thrift institutions, pension and profit-sharing plans, including plans subject to
Employee Retirement Income Security Act of 1974 (“ERISA”), trusts, estates, charitable
organizations, state and municipal government entities, corporations and other business
entities.
CMW does not require a minimum asset amount for financial planning, hourly consulting. For
investment advisory services, the minimum account size is $100,000. Lower amounts can be
considered and can be accepted.