Kondo Wealth Advisors Inc

Item 5: Fees & Compensation

How We Are Compensated for Our Advisory Services

Portfolio Management:

             Assets Under Management            Annual Percentage of Assets Charge
                  First $0 - $250,000                        1.50%
              Next $250,001 - $1,000,000                     1.25%
             Next $1,000,001 - $2,000,000                    1.00%
             Next $2,000,001 - $5,000,000                    0.75%
                  Over $5,000,000+                           0.50%

Our firm’s annualized fees are billed on a pro-rata basis quarterly in advance and based on the value
of your account on the last day of the previous quarter. Fees will be adjusted for deposits and
withdrawals made during the quarter and will be deducted from your managed account. Our firm
bills on cash balances unless otherwise agreed in writing. However, legacy clients may be offered
discounts based on the terms of previously executed agreements. As part of this process, clients are
made aware of the following:

   a) Your independent custodian sends statements at least quarterly to you showing the market
      values for each security included in the Assets and all disbursements in your account
      including the amount of the advisory fees paid to us;
   b) You provide authorization permitting us to be directly paid by these terms. We send our
      invoice directly to the custodian; and
   c) If we send a copy of our invoice to you, it will include a legend urging you to compare
      information provided in our statement with those from the qualified custodian.

The maximum annual fee charged to clients utilizing third party money managers will not exceed the
maximum fee published above for this service. Our firm will debit fees for this service as disclosed in
the executed advisory agreement between the client and our firm. This fee shall be in addition to any
fees assessed by the chosen third party money manager. The third party money managers we
recommend will not directly charge you a higher fee than they would have charged without us
introducing you to them. Third party money managers establish and maintain their own separate
billing processes over which we have no control. They will directly bill you and describe how this
works in their separate written disclosure documents.

Financial Planning & Consulting:

We charge on an hourly or flat fee basis for financial planning and consulting services. Our hourly
rate will not exceed $495. Flat fees will not exceed $20,000. The total estimated fee, as well as the
ultimate fee that we charge you, is negotiable and based on the scope and complexity of our
engagement with you. We generally charge a minimum fee of $5,500 for written financial plans. Our
annual renewal fee will not exceed $1,000. The plan and renewal fees shall only be negotiable in the
event the client executes a Portfolio Management Agreement and invests $1,000,000 or more with
our firm within one year of executing a Financial Planning and Consulting Agreement. In all other
situations, the renewal fee is generally not negotiable. Prior agreed to annual renewal rates have been
grandfathered in. Payment of fees will be due following the delivery of a financial plan or
consultation. In all cases, we will not require a retainer exceeding $1,200 when services cannot be

rendered within 6 months. Upon client request, our firm will agree to directly invoice a client to allow
them to pay our firm’s fees for this service via check or via an approved secure money sending
application(s).

Other Types of Fees & Expenses

Clients will incur transaction charges for trades executed in their accounts. These transaction fees
are separate from our firm’s advisory fees and will be disclosed by the chosen custodian. However, it
is important to note that the custodian we generally recommend, Charles Schwab & Co., Inc.
(“Schwab”) as well as other custodians that we work with in limited situations including, but not limited
to, Pershing Advisor Solutions, LLC and Fidelity (Schwab and other custodians shall be collectively
referred to as “Custodians”), do not charge transaction fees for U.S. listed equities and exchange traded
funds. Clients may also pay charges imposed directly by a mutual fund, index fund, or exchange
traded fund, which shall be disclosed in the fund’s prospectus (i.e., fund management fees, initial or
deferred sales charges, mutual fund sales loads, 12b-1 fees, surrender charges, variable annuity fees,
IRA and qualified retirement plan fees, and other fund expenses). Our firm does not receive a portion
of these fees.

As part of our Portfolio Management service, clients may be invested in SA Funds – Investment Trust
(“SA Funds”), a family of ten asset class mutual funds advised by Focus Partners Advisor Solutions.
KWA and Focus Partners Advisor Solutions are unaffiliated firms. Focus Partners Advisor Solutions
receives management, administration and shareholder servicing fees that are separate from each of the
SA Funds described in the SA Funds’ prospectus. Clients may also be invested in other mutual funds or
Exchange Traded Funds (ETFs), (collectively, “DFA Funds”) managed by Dimensional Fund Advisors,
Inc. (“DFA”), or equities managed by other third party investment advisers that is unaffiliated with KWA
and Focus Partners Advisor Solutions. DFA acts as a sub-adviser for 9 out of 10 of the SA Funds, from
which DFA receives sub-advisory fees. The 10th SA Fund, SAWMX, does not utilize any sub-advisor. Our
firm does not receive a portion of these fees. Clients will be provided with a copy of the applicable SA
Fund and/or DFA Funds’ documents prior to investing. These factors present a conflict of interest, as it
provides incentive for Focus Partners Advisor Solutions to recommend the purchase of SA Funds and
DFA Funds rather than other similarly-situated mutual funds. KWA will always act in the client’s best
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Item 7: Types of Clients & Account Requirements

We have the following types of clients:
   • Individuals and High Net Worth Individuals;
   • Trusts, Estates or Charitable Organizations;
   • Corporations, limited liability companies and/or other business types

Below are our requirements for opening and maintaining accounts or otherwise engaging us:
   • We require a minimum account balance of $500,000 for our Portfolio Management service.
       Generally, this minimum account balance requirement is not negotiable and would be
       required throughout the course of the client’s relationship with our firm.
   • We generally charge a minimum fee of $5,500 for written financial plans, as well as an annual
       renewal fee of $1,000 dollars for ongoing Financial Planning & Consulting clients. If a client
       invests $1,000,000 (or more) with our firm within one year of executing a Portfolio
       Management Agreement, the $5,500 written financial planning fee & $1,000 annual renewal
       fee will be waived.