KB Financial Advisors LLC

Item 5           Fees and Compensation

   A. The Registrant’s fees for its advisory services are set forth below.

         ON YOUR WAY TO WEALTH SERVICE
         For the On Your Way to Wealth, Registrant charges the client an initial fee of $4,000 at
         the beginning of the engagement, and the client is subject to an ongoing, fixed fee of $4,000
         every six months.

         After the client has attained $1 million dollars in assets under management with the
         Registrant, the client will transition to the tiered, AUM-based fee schedule listed below.

         DESTINATION WEALTH SERVICE
         For the Destination Wealth Service, the Registrant charges the client an initial fee of $4,000
         at the beginning of the engagement, and the client is subject to an ongoing, fixed fee of
         $4,000, due quarterly.
         After the client has attained $2 million dollars in assets under management with the
         Registrant, the client will transition to the tiered, AUM-based fee schedule listed below.

    AUM Based Fee Schedule

    Up to $5,000,000                                  1%
    Greater than $5,000,000                           0.75%
    Greater than $7,500,000                           0.70%
    Greater than $10,000,000                          0.65%

    Fees in General. The Registrant shall price the above services based upon various objective
    and subjective factors. As a result, Registrant’s clients could pay diverse fees based upon
    the market value of their assets, the complexity of the engagement, and the level and scope
    of the overall investment advisory services to be rendered. As a result of these factors, the
    services provided by the Registrant to any particular client could be available from other
    advisers at lower fees. All clients and prospective clients should be guided accordingly.

    Independent Manager Fees. The fee charged by Independent Managers typically ranges
    from .19-.27%, dependent upon the Independent Manager selected. The fee charged by the
    Independent Manager is in addition to Registrant’s advisory fee.

B. Investment Advisory clients may elect to have the Registrant’s advisory fees deducted from
   their custodial account. The Registrant's custodial/clearing agreement may authorize the
   custodian to debit the account for the amount of the Registrant's investment advisory fee
   and to directly remit that management fee to the Registrant in compliance with regulatory
   procedures. Where Registrant bills its clients directly, payment is due upon receipt of the
   Registrant’s invoice. The Registrant generally determines its annual fee for ongoing
   advisory services for each year based upon various objective and subjective factors as of
   the last day of the quarter prior to the quarter in which the client engages the Registrant to
   provide investment advisory services.

C. As discussed below, unless the client directs otherwise or an individual client’s
   circumstances require, the Registrant shall generally recommend that Charles Schwab and
   Co., Inc. (“Schwab”) or Altruist Financial LLC (“Altruist”) serve as the broker-
   dealer/custodian for client investment management assets. Broker-dealers such as Schwab
   or Altruist charge transaction fees for effecting certain securities transactions (e.g.,
   transaction fees are charged for certain no-load mutual funds and fixed income securities
   transactions). In addition to Registrant’s investment management fee, brokerage
   commissions and/or 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).

    When in the reasonable determination of the Registrant that it would be beneficial for the
    client, individual equity and/or fixed income transactions may be executed through broker-
    dealers other than the account custodian. In that event, the client will generally incur both
    the fee (commission, mark-up/mark-down) charged by the executing broker-dealer and a
    separate “trade-away” and/or prime broker fee charged by the account custodian.

D. Unless otherwise agreed, the Registrant's annual fee for Destination Wealth services shall
   be prorated, paid quarterly in advance, and On Your Way to Wealth services shall be
   prorated, paid semi-annually, in advance. The Registrant generally requires a minimum
   annual fee of $8,000 for its On Your Way to Wealth service and $16,000 for its Destination
   Wealth service. Fees are negotiable, and the Registrant, in its sole discretion, may charge
   a lesser fee and/or waive or reduce its annual minimum fee 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, negotiations with client, etc.).

         The Agreement between the Registrant and the client will continue in effect until
         terminated by either party by written notice in accordance with the terms of the agreement.
         Upon termination, the Registrant shall refund the pro-rated portion of the advanced
         advisory fee paid, if any, based upon the number of days remaining in the billing cycle.

   E. Neither the Registrant nor its representatives accept compensation from the sale of
      securities or other investment products.

Item 7           Types of Clients

         The Registrant’s clients generally include individuals, high net worth individuals, trusts,
         and estates. Please see Item 5 for information about account minimums.