Schwab Wealth Advisory Inc

Item 5 – Fees and Compensation
Pursuant to an agreement between SWAI and CS&Co., CS&Co. pays SWAI a fee for investment advisory services provided, which includes:
investment advice to SWA Accounts, which is equal to the costs and expenses incurred by SWAI in connection with the SWA Program plus an
additional amount of 10% of those costs and expenses; and includes point-in-time investment advice that is provided to CS&Co. clients and/or
SWA clients by SWAI Specialists and DWAMS.

SWAI also provides advisory services to other CS&Co. affiliates and receives compensation for those services:
•	 Charles Schwab Trust Company (“CSTC”): SWAI gives CSTC non‑discretionary investment recommendations for certain trust accounts when
   requested.

•	 Charles Schwab Hong Kong (“CSHK”): SWAI provides research services for a recurring fee that may change if both parties agree in writing.

SWAI does not enter into agreements directly with SWA clients, CS&Co. clients, CSTC clients, or CSHK clients, and therefore does not bill them
directly, negotiate fees, or receive direct compensation.

The compensation to SWAI and SWAI Associates does not vary based on the securities, mutual funds, ETFs or SMAs that are recommended to
clients. However, due to the higher compensation CS&Co. receives, CS&Co. and its other affiliates benefit more when clients:

•	 invest in a no transaction fee (“NTF”) fund

•	 invest in a Schwab ETF

•	 purchase third-party active semi-transparent ETFs

•	 purchase alternative investments in a SWA Account versus a Brokerage Account.

The Schwab® Government Money Fund (“SWGXX”) pays CS&Co. an annual asset-based fee of up to 0.10% annually for sweep administrative
services that CS&Co. provides to shareholders invested in sweep shares of SWGXX. In aggregate, the fees CS&Co. or its affiliates, excluding
SWAI, receive from Schwab Funds may be greater than the compensation CS&Co. receives from unaffiliated fund companies. When an SWAI
Associate recommends a client invest in an affiliated fund, this represents a conflict of interest, as CS&Co. earns additional compensation if
clients purchase and hold affiliated funds.

                                                   Schwab Wealth Advisory, Inc. Disclosure Brochure

SWAI Associates can recommend SMAs while you are enrolled in the SWA Program, which are managed either by CSIM or third-party money
managers. CS&Co. and its affiliates, excluding SWAI, earn additional compensation when a client enrolls in SMAs, which creates a conflict of
interest.

Referrals by SWAI Associates
SWAI Associates do not recommend certain products, such as some banking products, 529 plans, annuities, and life insurance, but they may
refer you to another party for more information. SWAI Associates are not paid for these referrals. However, CS&Co. may receive compensation if
you choose to purchase and hold these products, which creates a conflict of interest. More information about these referral products is available
in the SWA Disclosure Brochure.

Item 7 – Types of Clients
CS&Co., as sponsor of the SWA Program, determines the types of clients and accounts that are eligible to participate in the SWA Program.

To enroll in the SWA Program, CS&Co. currently requires clients to have at least $500,000 in investable assets. In some cases, CS&Co. may
reduce or waive this minimum, based on business needs or individual circumstances.

If an account or account group balance later drops below the minimum, for example, because of withdrawals or because the client originally joined
when a lower minimum applied, CS&Co. may allow the client to remain in the program.
In addition to SWA Program clients, SWAI also provides advisory services to certain clients and prospective clients who are not enrolled in the
SWA Program and who are referred by CS&Co. for point‑in‑time investment advice. These services are limited in scope and do not include ongoing
portfolio monitoring or discretionary investment management. Clients receiving this type of advice are not subject to the SWA Program eligibility
requirements, and the advice provided does not result in enrollment in the SWA Program unless the client subsequently meets applicable
eligibility criteria and elects to enroll.