Kahn Financial Group Inc

Fees and Compensation
                                                                                               Form ADV Part 2A, Item 5

The fees KFG will charge for financial planning services are dependent on the anticipated time and complexity
of the plan. The fees will be determined in advance and will be disclosed to the client before executing the
Investment Advisory Agreement. Fees will rarely depart from the established fee schedule but may do so in
exceptional circumstances. It is possible a client will pay more or less for similar services than another client. If
a client retains KFG on an hourly basis for plan development or consultation, the rate will range between $100
to $200 per hour (a lesser hourly fee may be charged for administrative and staff functions). If the client retains
KFG to create a financial plan on a fixed fee basis, that fee will range between $500 and $4,000, depending on
the complexity and comprehensiveness on the plan.

KFG provides investment advisory services using the Investment Management Program for Advisory Clients
(IMPAC). This program provides the client with ongoing investment advice and monitoring of securities
holdings. This is a fee-based account offered and administered through Raymond James & Associates, Inc
(RJA), member NYSE/SIPC
The fee schedule for IMPAC is
as follows:

First $500,000  1.5% per year
Next $4,500,000 1.0% per year
Over $5,000,000 Negotiable

Transaction fees range from no fee to $40.00. There are no transaction fees for mutual fund redemptions.

If the cash balance exceeds 20% of the Account Value as of the last business day of the quarter (“the valuation
date”) for three (3) consecutive quarterly valuation dates, the amount in excess of 20% is excluded from billing.

For those investors who meet the legally mandated net worth requirements to purchase it, private placement
life insurance and/or variable annuity policies may be employed, if deemed of benefit to the investor based on
the financial planning process. The fee schedule, based on the amount of dollars that are to be placed in such
policies are as follows:

1.5% for the first $10,000,000
1.0% for the next $15,000,000
½% for the next $25,000,000
¼% for any additional dollars

The minimum contribution to such a policy is $1,000,000. Compensation is due in part upon the signing of a
separate planning agreement specific to PPLI and/or PPVA and part at the acceptance of the financial plan.
The time of payment and the fee itself are negotiable.

The annual asset-based fee is paid quarterly in arrears or in advance at the choice of the client. For accounts
billed in arrears, the asset-based fee is calculated on the account asset value on the last business day of the
quarter for the previous quarter. KFG has the option to bill any management fees on a pro-rata basis for
deposits made during a quarter. For accounts billed in advance, the asset-based fee is billed when the account
is opened for the remainder of the current billing period based on the initial contribution. Thereafter, the
quarterly asset-based fee is paid in advance based on the account asset value on the last business day of the
previous quarter and is due the following business day. The client authorizes and directs Raymond James &
Associates (RJA) member NYSE/SIPC as Custodian, to deduct asset-based fees from the client’s account. If
the client prefers, he may choose to be billed each quarter for the fees due. If paid in a timely fashion, the fees
will not be deducted from the client’s account.

 Clients may incur a nominal charge per transaction for handling and postage. The client may also incur
charges for other account services provided by Raymond James Financial Services , member FINRA/SIPC
through RJA not deduction related to the execution and clearing of transactions including, but not limited to,
IRA custodial fees, safekeeping fees, interest charges on margin loans and fees for legal or courtesy transfers
of securities. KFG does not share in any of these additional charges paid to Raymond James Financial
Services .

Clients should be aware that all mutual funds and insurance products available under the IMPAC program have
their own separate management fees and operating expenses, which are disclosed in their respective
prospectuses.

KFG works primarily with individuals and high net worth individuals as well as pension and profit sharing
plans.

If fees have been paid in advance and the Investment Management agreement is terminated by providing
written notice, the client will receive a refund of the portion of the prepaid asset-based fee which has not been
utilized. If a client terminates the agreement within the first five (5) business days of entering into the
agreement, all prepaid fees will refunded. The written notice of termination should be sent to:

Kahn Financial Group
1700 McMullen Booth Rd.
Suite A-5
Clearwater, FL 33759

                                                                            ©2010 National Compliance Services 800-800-3204

While in most cases the investment advisor representative (IAR) invests the majority of client assets in mutual
funds on a fee basis as described above, there are occasions when it is deemed appropriate to use other
products that may pay a commission. The different types and amounts of compensation create a conflict of
interest.

When making cost comparisons, clients should be aware that the combination of multiple mutual fund
investments, advisory services, custodial and brokerage services available through each program may not be
available separately or may require multiple accounts, documentation and fees. If an account is actively traded
or the client otherwise may not qualify for reduced sale charges for fund purchases, the fees may be less
expensive than separately paying the sales charges and fees. If an account is not actively traded or the client
...

Types of Clients

                                                                                                     Form ADV Part 2A, Item 7

KFG works primarily with individuals, as well as with high net worth individuals. There is a $25,000 minimum
account value which can be waived by the firm.

               Methods of Analysis, Investment Strategies and Risk of Loss

                                                                                                     Form ADV Part 2A, Item 8
KFG believes that there is no investment without risk. Even a FDIC insured CD may have the risk of the loss of
purchasing power over time. Mutual funds, stocks, bonds, alternative investments, etc., can all potentially lose
some or all of the client’s investment. As each client has a different tolerance for these risks, the first step in
formulating investment advice or in managing assets is determining their specific risk tolerance as well as the
time frame for the investment and the goal or goals for the investment. We use a basic risk tolerance
questionnaire and follow that up with discussing the above points. We then align the various investments to the
result of that analysis.

Mutual Funds: Investing in mutual funds carries the risk of capital loss and thus you may lose money investing
in mutual funds. All mutual funds have costs that lower investment returns. The funds can be of bond (fixed
income) nature or stock (equity) nature, or a mix of multiple underlying security types.

We believe that mutual funds generally provide an appropriate balance between risk and reward. We analyze
each fund we recommend to clients using the data available through subscribing to Morningstar and also using
the proprietary mutual fund research of RJFS, as well as by attending various conferences and meeting with
fund representatives. We attempt to locate funds with managers that over a period of years often out-perform
their peers and their respective indexes. We also believe that a portfolio that is broadly diversified may lower
the overall level of risk. To that end, in addition to a core holding of mutual funds, we believe that using
alternative investments, for those clients meeting the minimum net worth requirements, will add to the
diversification of an investment portfolio.

As it is very true that past performance is no guarantee whatsoever of future results, a mutual fund can lose a
significant percentage of the funds being managed even if it has not happened in the past. Some alternative
investments have varying levels of risk, some quite high with others moderate.

We do not engage in frequent trading. We are looking to achieve long term results while primarily avoiding
speculative investments.

As mentioned above, we believe that while there is still significant risk in using mutual funds as the core
holding, especially over a short period of time, the level of risk is moderated through diversification within each
fund and through the use of several different funds with different investment objectives. Investing in securities
involves a risk of loss that you, as a client, should be prepared to bear.

                                                                            ©2010 National Compliance Services 800-800-3204