Challenger Wealth Management

Item 5 Fees and Compensation
Asset Management Services
A. Our fees are negotiable and are not based on a share of capital gains or capital appreciation of the
funds or any portion of the funds in your account. The Fee Schedule is as follows:

Account Size                  Maximum Annual Fee
$0 to $5,000,000                        1.25%
$5,000,001 to $10,000,000               1.20%
$10,000,001 to $15,000,000               .95%
$15,000,000+                         Negotiable

Your annual fee is based on an aggregate value of all managed accounts within your established
household. For these multiple accounts, we may deduct an aggregated advisory fee from one
selected account. However, American Fund fees will be debited from each fund within each account
individually and cannot be deducted from one selected account. Aggregated accounts will be listed on
Schedule D of your Investment Advisory Agreement with CWM.

Accounts maintained direct at American Funds will be charged a fee based on the average daily
balance. The American Funds accounts are charged a fee of .5% of the account value, regardless of
the agreed upon fee schedule for your other assets. American Funds directly debits these accounts
and remits payment to CWM.

We sometimes make exceptions to our general fee schedule under certain circumstances (e.g.,
responsibilities involved, accounts or groups of accounts which are expected to have significant capital
additions in the future, anticipated future earning capacity, related accounts, account composition, pre-
existing client, account retention, pro bono activities, etc.). In such cases, lower fees or different
payment arrangements can be negotiated with each client separately and will be described in the
client's advisory agreement.

You may make additions to the account or withdrawals from the account. Additional assets received
into the account during any billing period will be charged a pro-rata asset management fee based on
the number of days remaining in the billing period if the amount of the deposit is $25,000 or more.
Withdrawals from the account will receive a pro-rata refund if the amount of the withdrawal is $25,000
or more. No fee adjustments will be made for account appreciation or depreciation.

B. When necessary, CWM will send you a written invoice, including the fee, the formula used to
calculate the fee, the fee calculation itself, the time period covered by the fee, and, if applicable, the
amount of assets under management on which the fee was based. Also, we will include the name of
the custodian(s) on your fee invoice. CWM will send these to you concurrent with the request for
payment or payment of our advisory fees. We urge you to compare the quarterly invoice and
report with the fees listed in the account statement and promptly notify CWM of any questions or
concerns. *Account values in the Orion reporting system will be used for CWM's quarterly fee
calculations for advisory accounts custodied at Schwab. Although account holdings and asset
valuations should generally match, month-end market values reflected in Orion reporting system
sometimes differ from those provided by Schwab on their month-end statements. The three most
common reasons why these values may differ are (i) differences in the manner in which accrued
interest is calculated, (ii) differences in the date upon which "as of" dividends and capital gains are
reported, and (iii) differences in whether settlement date valuations or trade date valuations are used.

New clients establishing a managed account will pay a prorated portion of the advisory fee based on
the number of days the account was under CWM's management. If the account is established or
closed during the quarter, you will pay a prorated portion of the advisory fee based on the number of
days the account was under CWM's management. Advisory fees will be charged to and collected
directly from the account for your Asset Management fees. You will need to grant CWM the

authorization to debit your fee. Schwab will provide you with a quarterly or monthly statement that lists
the total fees deducted from the account as well as all transactions that were conducted in the account
that quarter/month.

C. In addition to the advisory fees above, you will pay transaction fees for securities transactions
executed in your account in accordance with the custodian's transaction fee schedule. You may also
pay fees for custodial services, account maintenance fees, and other fees associated with maintaining
the account. These fees are not charged by CWM and are charged by the product, broker-dealer,
insurance company or account custodian. CWM does not share in any portion of these fees.
Additionally, you may pay your proportionate share of the fund's management and administrative fees
and sales charges as well as the fund adviser's fee of any fund they purchase. These advisory fees
are not shared with CWM and are compensation to the fund manager. While certain products may pay
12b-1 fees, CWM will not receive these fees. Schwab will retain the 12b-1 fees. You should read the
fund prospectus for full details.

D. The Asset Management fee is generally billed in advance quarterly. However, if your managed
account is held directly at American Funds, the management fee is billed quarterly in arrears. Fees will
be based on the value of the account on the last day of the calendar quarter of each year. If your
account does not contain sufficient funds to pay the advisory fees, we have the limited authority to sell
or redeem securities in sufficient amounts to pay advisory fees. Except for ERISA and IRA accounts,
you may reimburse your account for advisory fees paid to CWM.

Fee calculation example for a $9,500,000 dollar account:

    • $9,500,000 x 1.20% = $114,000 divided by 4 = Quarterly Fee of $28,500

CWM will obtain your written consent prior to making any changes to our fee schedule or revising any
material terms of our advisory agreement with you.
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Item 7 Types of Clients
CWM's services are generally geared toward individuals, both high-net-worth and non-high-net-worth
individuals, pension and profit sharing plans and charitable organizations.

Our minimum fee to obtain financial planning services is $1,500.

Each Third-Party Management Service that we offer has their own account minimum. The account
minimums are disclosed in each respective manager's Form ADV and associated paperwork that will
be presented to you. CWM does not have an account minimum for its asset management services.