Additional Information about Advisor Billing

If you have agreed to pay your advisor a wrap fee or bundled fee that covers both your advisor's investment management services and certain brokerages and execution related services, your Advisor will enroll your account in Advisor Billing. Once enrolled, Schwab will bill your Advisor directly for most commissions and/or other transaction related service fees that arise when your advisor places trades directly with Schwab on your behalf. Schwab's Advisor Billing technology allows your Advisor to pay Schwab directly for these services in lieu of Schwab billing your Account.

Your Advisor is responsible to inform you of any enrollment or unenrollment of your account in Advisor Billing. You will be responsible for all trading, execution, service fees and/or other transaction related fees outlined in the Charles Schwab Pricing Guide for Clients of Independent Investment Advisors if you terminate your relationship with your advisor or if you or your advisor request unenroll your account from Advisor Billing.

If you are unsure whether your account is enrolled in Advisor Billing, please contact your investment advisor directly or you can reach out to Schwab Alliance at 1-800-515-2157.

Fees and Costs Excluded from Advisor Billing

You will still be responsible to pay certain service fees and expenses, even if your Account is enrolled in Advisor Billing. The items listed below are generally your responsibility and will not be billed to your Advisor, unless otherwise agreed.

(a) Other Broker-Dealers' Fees. Commissions and other fees for services provided by broker-dealers other than Schwab for transactions that your Advisor or you execute away from Schwab and that settle into or from your Schwab Account, such as through our use of Schwab's Prime Brokerage or Trade-Away Services. You will be responsible for paying any commissions and other fees or compensation charged by broker-dealers other than Schwab.

(b) Mutual Fund Operating Fees and Expenses. Fees charged by some mutual fund companies, unit investment trusts (UITs), closed-end funds, and other collective investment vehicles, including, but not limited to, fees assessed by the fund but collected for the fund by Schwab, such as sales loads (a portion of which are paid to Schwab) and/or charges and short-term redemption fees.

(c) Markups and Markdown, Bid-Ask Spreads, Selling Concessions, etc. Markups and markdowns, bid-ask spreads, selling concessions, and the like received by Schwab in connection with transactions it executes as principal by selling or buying securities to or from clients for its own account. Schwab may act as principal in executing trades for your Account. Principal transactions contrast with those in which Schwab acts as agent for clients in effecting trades between the client and a third party. Schwab may make a profit or incur a loss on trades in which it acts as principal. Markups and markdowns and bid-ask spreads are not separate fees, but rather are reflected in the net price at which a trade order is executed.

(d) Margin Interest. If your Account has a margin feature, the margin interest on any margin loans made.

(e) Cashiering Fees and Account Activity Fees. Cashiering fees including, electronic funds and wire transfers fees, certificate delivery fees, and other account activity fees outlined in the Charles Schwab Pricing Guide for Clients of Independent Investment Advisors ("Pricing Guide").

(f) Custody Fees for Non-Publicly Traded Securities. Custody fees for Non-Publicly Traded Securities (as defined in the Pricing Guide), which include, without limitation, promissory notes; church bonds; limited partnerships; private limited partnerships; limited liability companies; private common, preferred, and convertible preferred stock; private bonds; private warrants; private placements; and private REITs.

(g) Miscellaneous Fees and Charges. Transfer taxes, odd-lot differentials, certificate delivery fees, reorganization fees, fees required by law, and any other fees or charges similar to those described above.

Schwab provides a broad range of value-added services, some of which have associated fees. The Charles Schwab Pricing Guide for Clients of Independent Investment Advisors (or a successor thereto) ("Pricing Guide"), outlines the current pricing for commissions, transaction fees, and key account and service fees. The most recent pricing information is available at

Important information when participating in a Wrap Fee Program recommended by your advisor

It is important that you have, read, and understand your advisor's fee disclosures and understand the total costs associated with paying your advisor a single wrap fee that covers your advisor's or investment manager's investment advice and related execution services to determine that if your advisor's wrap fee arrangement is appropriate for you. Please reach out to your advisor if you have not already been provided with disclosures discussing any conflicts that arise from the fee arrangement recommended by advisor.

(a) Your advisor's wrap fees may cost you more than paying for your advisor's investment advice and Schwab's brokerage services separately.

(b) Wrap fees may not be not appropriate for all accounts, including but not limited to accounts holding primarily, and for any substantial period of time, cash or cash equivalent investments, fixed income securities or no-transaction-fee mutual funds, or any other type of security that your advisor or you could trade without commissions or other transaction fees.

(c) Your advisor will pay certain trading and execution costs incurred by your account directly, and this arrangement can create an incentive for your Advisor to trade in your account less frequently.

If you have any questions about Advisor Billing or your advisor's fee arrangement, please reach out to your Advisor directly.