Chatterton & Associates the Wealth Management Team Inc

Item 5. Fees and Compensation

Chatterton’s fees are billed on a pro-rata annualized basis quarterly in arrears based on the
value of your account on the last day of the quarter according to the following schedule:

Assets Under Management by Household                 Annual Percentage of Assets Charge:

Under $1,000,000                                                      1.00%
     $1,000,001 - $3,000,000                                          0.75%
     $3,000,001 - $5,000,000                                          0.62%
Over $5,000,000                                                       0.50%

Fees are negotiable.

                                                     (714)572-2050           contactus@chattertoninc.com
                                                     www.chattertoninc.com   3061 E. La Palma Ave. Anaheim, CA 92806

Our firm bills on cash if available within the account or if cash is not available, cash will be
generated by SEI based by selling a portion of the largest holding in the portfolio. Upon client
consent, management fees will be deducted from the client’s managed account through our
qualified custodian. As part of this process, the custodian will send statements to clients at least
quarterly showing the market values for each security included in the account and all
disbursements in your account including the amount of the advisory fees paid to us. For clients
conducting business through an SEI independent investment manager program, the fees charged
by SEI are exclusive of, and in addition to, our firm’s investment management fee.

Our firm also offers Financial Plans for clients who currently do not meet our assets under
management minimum of $500k. These plans will range from $5k-25k annually and will have a
separate agreement that describes the terms of the plan. The fee will vary based on complexity
and will be thoroughly discussed with the advisor prior to onboarding.

Other Types of Fees & Expenses

Other charges imposed by the custodian include, but are not limited to, IRA and qualified
retirement plan fees, ancillary custody charges such as wire transfer fees, fees based on cash or
money market deposits, and other charges required by law and imposed by the custodian.

In addition to the above, clients will pay the following separately incurred expenses, which we do
not receive any part of: 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 and
other fund expenses).

Fees upon Termination

We charge our advisory fees quarterly in arrears. Upon termination, we will close out your
account and charge you a pro-rated fee calculated by the custodian for advisory services
rendered up to the point of termination.

Commissionable Securities Sales

In order to sell securities for a commission, our advisors are registered representatives of Osaic
Wealth, Inc., member FINRA/SIPC. In this capacity, our advisors may sell securities to clients and
receive compensation in the form of commissions and 12b-1 fees or trails. However, such
compensation will not be received in connection with investments made in SEI accounts that we
provide ongoing advisory asset management services for. The transaction charges range from $0
to $35 per transaction plus a fee of $0.05 per share for individual equity securities. Our firm does
not receive any portion of these transaction charges. This is a potential conflict of interest in that
advisors may be incentivized to recommend products that are not in a client’s best interest in
order to earn a commission. Clients have the option to purchase investment products through

                                                     (714)572-2050           contactus@chattertoninc.com
                                                     www.chattertoninc.com   3061 E. La Palma Ave. Anaheim, CA 92806

other brokers or agents rather than purchasing these securities through our advisors.

Insurance Services

Some employees of Chatterton may recommend and sell insurance through Osaic and will receive
the usual and customary commissions for these insurance sales. These fees are separate from
any advisory fees charged to a client by Chatterton. This is a potential conflict of interest in that
advisors may be incentivized to recommend insurance products that are not in a client’s best
interest in order to earn a commission. Clients have the option to purchase insurance products
through other agents rather than purchasing insurance through our advisors.

Retirement and Plan Advisory Consulting Services

Retirement Plan Advisory and Consulting Services are charged using advisor’s discretion at either
a % of plan assets (BPS) or at an annual flat fee and is based on specific factors regarding the plan
and the services required. The specific fee arrangement will be indicated in our Retirement Plan
Investment Advisory Agreement.

Item 7. Types of Clients and Account Requirements

Chatterton has the following types of clients:

   •   Individuals;
   •   High Net-Worth Individuals; and
   •   Pension and Profit-Sharing Plans.

We require a minimum household balance of $500,000 for our asset management service. This
minimum balance is negotiable and subject to advisor review. We also permit households to
maintain accounts that have dropped below this level, unless the account balance is below the
threshold due to withdrawals other than retirement account distributions or market actions.