Keystone Wealth Management Inc

Item 5 Fees and Compensation
    Portfolio Management Services
    Our standard annual fee for portfolio management services is 1%, but is negotiable depending
    upon the market value of your assets under our management, the type and complexity of the
    asset management services provided, as well as the level of administration requested either
    directly or assumed by the client. Assets in each of your account(s) are included in the fee
    assessment unless specifically identified in writing for exclusion.

    Our annual portfolio management fee is billed and payable monthly in advance, based on the
    balance of your account on the last business day of the previous month. For example, fees for
    January will be based on the balance of your account as of the last business day of December.

    If the portfolio management agreement is executed at any time other than the first day of a
    month, 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 month for which you are a client. Our advisory fee is
    negotiable, depending on individual client circumstances.

    We typically 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 increases the asset total, which generally results in your paying a
    reduced advisory fee.

    We will deduct our fee directly from your account(s) through the qualified custodian holding your
    funds and securities. We will deduct our advisory fee only when the following requirements are
    met:

        • You provide our firm with written authorization permitting the fees to be paid directly
          from your account held by the qualified custodian;
        • We send you an invoice showing the amount of the fee, the value of the assets on
          which the fee is based, the time period covered by the fee, and the specific manner in
          which the fee was calculated; and
        • The qualified custodian agrees to send you a statement, at least quarterly, indicating
          all amounts disbursed from your account including the amount of the advisory fee paid
          directly to our firm.

    We encourage you to reconcile our invoices with the statements you receive from the qualified
    custodian. If you find any inconsistent information between our invoice and the statements you
    receive from the qualified custodian, call our main office number located on the cover page of
    this brochure.

    Fees are prorated based on the number of days service is provided during each billing period. If
    asset management services are commenced in the middle of a billing period, the prorated fee
    for the initial billing period is billed in arrears at the same time as the next full billing period's fee
    is billed. If an account is terminated during a billing period, we will provide a refund of any
    unearned advisory fees billed in advance based on the pro-rated number of days remaining in the
    month following the termination of the account by the client.

    We have a limited number of clients that have engaged us to manage their 401(k) accounts
    which are held-away from our custodian. These accounts are invoiced at 0.40% based on the
    account value when the account was initially established with Keystone Wealth Management.

Fees are reviewed annually for possible adjustment with written client consent, and these are
discretionary accounts.
Financial Planning Services and Financial Consulting Services
We do not charge separately for our financial planning services nor do we charge separately for
our financial consulting services if you are a Portfolio Management Service client. Our financial
planning services and financial consulting services are included in the fees you pay for our
Portfolio Management Services.

Your financial planning and financial consulting agreement will end upon termination of your
Portfolio Management Services' agreement. You will not have prepaid, unused financial
planning nor financial consulting fees in these cases.

Additional Fees and Expenses
As part of our investment advisory services to you, we 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 qualified custodian through whom your account
transactions are executed. We do not share in any portion of the brokerage fees/transaction
charges imposed by the 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.

We have a fiduciary duty to act in our client's best interest including the duty to seek best
execution. Therefore, our mutual fund selection and recommendation process takes into
consideration several factors in order to meet this requirement. See the Brokerage Practices
section for additional information on our mutual fund share class selection process. Mutual
funds have different share classes that have different cost structures. Please see "Mutual Fund
Share Classes" under Item 12 Brokerage Practices for additional details on this.

Compensation on the Sale of Insurance Products
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Item 7 Types of Clients
We offer investment advisory services to individuals and high net worth individuals. We also
offer retirement plan consulting services to small businesses.

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.

We may also combine account values for you and your minor children, joint accounts with your
spouse, and other types of related accounts to meet any minimum requirements.