Chicago Wealth Management Inc

Item 5 – Fees and Compensation

       A. CWM is primarily compensated for advisory services based on a percentage of assets under
          management according to the following fee schedules:

       Investment Advisory Engagements (excluding ERISA plans)

             Client Asset Under Management                       Annual Fee (% of assets managed)
             Initial $500,000                                    1.25%
             Next $2,000,000                                     1.00%
             Next $2,500,000                                     0.60%
             Above $5,000,000                                    0.40%

           As disclosed above, there are occasions when CWM charges separate fixed fees for financial planning
           or consulting services (i.e., based upon assets under management, special projects, etc.) per the terms
           and conditions of a separate Financial Planning and Consulting Agreement. However, CWM will not
           require or solicit payment of fees in excess of $1200 more than 6 months in advance of services
           rendered. Certain Legacy Clients may be under previous fee schedule arrangements, which remain in
           effect until updated.

           Clients who engage CWM to manage variable annuity sub-accounts, as set forth in Item 4 above,
           shall also be subject to the above investment fee schedule and billing methodology.

       ERISA Retirement Plans

             Plan Asset Under Management                         *Annual Fee (% of assets managed)
             Initial $250,000                                    1.00%
             Next $750,000                                       0.80%
             Above $1,000,000                                    0.60%
           Clients should note that similar advisory services may (or may not) be available from other registered
           (or unregistered) investment advisers for similar or lower fees. Legacy clients may be billed on
           previous fee schedules.

           Fee Dispersion. CWM, in its discretion, may charge a lesser investment advisory fee, charge a flat
           fee, waive its fee entirely, or charge fee on a different interval, based upon certain criteria (i.e.
           anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to be
           managed, related accounts, account composition, complexity of the engagement, anticipated services

           to be rendered, grandfathered fee schedules, employees and family members, courtesy accounts,
           competition, negotiations with client, etc.). Please Note: As result of the above, similarly situated
           clients could pay different fees. In addition, similar advisory services may be available from other
           investment advisers for similar or lower fees. ANY QUESTIONS: CWM’s Chief Compliance
           Officer, Nicholas Thompson, remains available to address any questions that a client or prospective
           client may have regarding advisory fees.

       B. The client provides written authorization permitting fees to be paid directly from the client’s account
          held by the custodian. This authorization is given on the custodian’s account application. CWM does
          not have access to client funds for the payment of fees without this consent. CWM directs its
          custodians to deduct fees directly from client accounts, and then remit those fees back to CWM.
          Management fees are charged on a quarterly basis and billed in arrears, based on the market value of
          the client’s account[s] at the end of the prior quarter (which fees shall be adjusted for intra-quarter
          additions/withdrawals). CWM will adjust its advisory fee with respect to any client deposits or
          withdrawals made during the advisory fee billing period.

       C. As discussed below, unless the client directs otherwise or an individual client’s circumstances require,
          CWM shall generally recommend that Schwab serve as the broker-dealer/custodian for client
          investment management assets. Broker-dealers such as Schwab charge transaction fees for effecting
          certain securities transactions (i.e. transaction fees are charged for certain no-load mutual fund and
          fixed income securities transactions). The types of securities for which transaction fees, commissions,
          and/or other type fees (as well as the amount of those fees) shall differ depending upon the broker-
          dealer/custodian. While certain custodians, including Schwab, generally (with potential exceptions)
          do not currently charge fees on individual equity transactions (including ETFs), others do. In addition
          to CWM’s investment management fee and brokerage transaction fees, clients will also incur, relative
          to all mutual fund and exchange traded fund purchases, charges imposed at the fund level (e.g.
          management fees and other fund expenses.

       D. CWM does not typically charge clients any pre-paid fees. All fees are generally charged based on
          quarter-end assets under management. In the event of a termination of the client’s advisory agreement,
          any pre-paid fees are pro-rated to the date of termination and any unearned portion thereof is refunded
          to the client.

       E. Neither CWM nor any of its employees accept compensation for the sale of securities or other
          investment products to clients. This includes asset based sales charges and service fees based on the
          sale of mutual funds.

Item 7 – Types of Clients

       CWM provides investment advice to the following types of clients: individuals, pension and profit sharing
       plans, trusts, estates, charitable organizations, corporations and business entities. CWM generally does not
       require a minimum account size.

       As indicated above at Item 5, CWM, in its discretion, may charge a lesser investment advisory fee, charge
       a flat fee, waive its fee entirely, or charge fee on a different interval, based upon certain criteria (i.e.
       anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to be

       managed, related accounts, account composition, complexity of the engagement, anticipated services
       to be rendered, grandfathered fee schedules, employees and family members, courtesy accounts,
       competition, negotiations with client, etc.). Please Note: As result of the above, similarly situated clients
       could pay different fees. In addition, similar advisory services may be available from other investment
       advisers for similar or lower fees. ANY QUESTIONS: CWM’s Chief Compliance Officer, Nicholas
       Thompson, remains available to address any questions that a client or prospective client may have regarding
       advisory fees.