Preston F Sanders CHFC LLC

Item 5 Fees and Compensation
Asset Management Services
Our fee for asset management services is based on a percentage of the assets in your account and is
set forth in the following annual fee schedule:

                                         Annual Fee Schedule

                      Assets Under Management                    Annual Fee
                             First $500,000                        1.5%
                      Next $500,000 to $1,000,000                  1.0%
                        Next $1,000,000 and up                     0.75%

Our annual asset management fee is negotiable, billed and payable, quarterly in arrears, based on the
average daily balance. If the asset management agreement is executed at any time other than the first
day of a calendar quarter, our fees will apply on a pro rata basis, which means that the advisory fee is
payable in proportion to the number of days in the quarter for which you are a client. Our advisory fee
is negotiable, depending on individual client circumstances.

At our discretion, we may combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in your paying a reduced advisory fee
based on the breakpoints available in our fee schedule stated above.

We will deduct our fee directly from your account through the qualified custodian holding your funds
and securities. We will deduct our advisory fee only when you have given our firm written authorization
permitting the fees to be paid directly from your account. Further, the qualified custodian will deliver an
account statement to you at least quarterly. These account statements will show all disbursements
from your account. You should review all statements for accuracy.

You may terminate the asset management agreement upon 30 days written notice. You will incur a pro
rata charge for services rendered prior to the termination of the asset management agreement, which
means you will incur advisory fees only in proportion to the number of days in the quarter for which you

are a client. If you have pre-paid advisory fees that we have not yet earned, you will receive a prorated
refund of those fees.

Financial Planning and Consulting Services
Fees for financial planning and consulting services are negotiable based on the scope of the
engagement. You may terminate the financial consulting agreement upon written notice to our firm. If
you have pre-paid financial consulting fees that we have not yet earned, you will receive a prorated
refund of those fees. If financial consulting fees are payable in arrears, you will be responsible for a
prorated fee based on services performed prior to termination of the financial consulting
agreement. Financial planning and consulting fees may be waived should the client choose to engage
us for Asset Management Services.

Additional Fees and Expenses
As part of our investment advisory services to you, we may invest, or recommend that you invest, in
mutual funds and exchange traded funds. The fees that you pay to our firm for investment advisory
services are separate and distinct from the fees and expenses charged by mutual funds or exchange
traded funds (described in each fund's prospectus) to their shareholders. These fees will generally
include a management fee and other fund expenses. You will also incur transaction charges and/or
brokerage fees when purchasing or selling securities. These charges and fees are typically imposed by
the broker-dealer or custodian through whom your account transactions are executed. We do not
share in any portion of the brokerage fees/transaction charges imposed by the broker-dealer or
custodian. To fully understand the total cost you will incur, you should review all the fees charged by
mutual funds, exchange traded funds, our firm, and others. For information on our brokerage practices,
refer to the Brokerage Practices section of this brochure.

Compensation for the Sale of Securities or Other Investment Products
Persons providing investment advice on behalf of our firm are licensed as independent insurance
agents. These persons will earn commission-based compensation for selling insurance products,
including insurance products they sell to you. Insurance commissions earned by these persons are
separate and in addition to our advisory fees. This practice presents a conflict of interest because
persons providing investment advice on behalf of our firm who are insurance agents have an incentive
to recommend insurance products to you for the purpose of generating commissions rather than solely
based on your needs. You are under no obligation, contractually or otherwise, to purchase insurance
products through any person affiliated with our firm.

Item 7 Types of Clients
We offer investment advisory services to individuals (other than high net worth individuals), high net
worth individuals, charitable organizations and corporations, In general, we do not require a minimum
dollar amount to open and maintain an advisory account; however, we have the right to terminate your
account if it falls below a minimum size which, in our sole opinion, is too small to manage effectively.