KRAL Financial Advisors LLC

FEES AND COMPENSATION

Investment Management Fee Schedule

        Our written agreement with you establishes the specific manner in which we charge fees.
We determine fees based on your initial account value, as reported by your account custodians,
and the value of your account at the end of each subsequent billing period. We do not charge a
fee for cash and money market balances in non-retirement accounts. For the first billing period,
we will prorate fees based on the day the account is opened. We calculate fees based upon the
value of your account on the last trading day of the prior period. (The second quarter fee will be
based upon the March 31st account values and billed in mid-April.) We round fee-calculations to
the nearest dollar.

        The minimum annual fee for our Investment Management Services is $3,500. In certain
circumstances, fees may be negotiated. Negotiated fees may be higher or lower than those
described in this Brochure. In these circumstances, we will establish the negotiated fee schedule
in your Investment Management Agreement. We reserve the right to waive fees for family
members or decline services to any person or firm and for any reason.

        The fees are billed quarterly in advance and based on a percentage of your assets under
our management (at a rate of one-quarter of the annual percentage). Our standard fee schedule is
as follows:

Part 2A of Form ADV                             3                       Kral Financial Advisors, LLC

               Assets                                    Annual Percentage

               First $500,000                                .80%

               From $500,000 - $1,000,000                    .70%

               From $1,000,000 - $1,500,000                  .60%

               From $1,500,000 - $2,000,000                  .50%

               From $2,000,000 and up                        .40%

Financial Planning and Consulting Fees

         We bill fees for Financial Consulting services in arrears (after services have been
rendered). Depending on the services requested, our fees will be based upon our hourly rates or
a flat project fee and will be disclosed in the Financial Consultation Agreement. Currently, the
hourly rate for Financial Planning and Consultation Services is $300 per hour. Project fees will
vary and are quoted based upon the complexity of the project, as well as the time and effort
required. The minimum project fee for drafting a comprehensive Financial Plan is $2,500. The
total fee and services to be provided are agreed upon at the time of engagement. There are times
that we may request a retainer. In such as case, the retainer will be no more than 1/2 the
proposed project fee. Financial Planning Services are renewed from year to year unless or until
terminated by written notice.

Other Fees and Expenses

        Our advisory fees are exclusive of brokerage commissions, transaction fees, and other
related costs and expenses which you may incur. Your account will separately pay for those
services and will be reported to you on your custodian’s account statements. You may incur
certain charges imposed by custodians, brokers, third party investment and other third parties
such as: fees charged by managers, custodial fees, deferred sales charges, odd-lot differentials,
transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage
accounts and securities transactions. Mutual funds and exchange traded funds also charge
internal management fees, which are disclosed in a fund’s prospectus. Such charges, fees and
commissions are exclusive of and in addition to our fee. We do not receive any portion of these
commissions, fees, and costs.

       Consequently, for any type of mutual fund investment, it is important for you to
understand that you are directly and indirectly paying two levels of advisory fees and expenses:
one layer of fees at the fund level and one layer of advisory fees and expenses to us. Generally
speaking, most mutual funds may be purchased directly, without using our services and incurring
our advisory fees.

Part 2A of Form ADV                              4                       Kral Financial Advisors, LLC

       Additionally, due to regulations under the Employee Retirement Income Security Act of
1974, 12b-1 fees are refunded to the qualified retirement accounts and not received by the
custodian/broker dealer or the registered representative.

Direct Billing to Your Custodian

        You may elect to be billed directly for fees or to authorize us to directly debit fees from
your investment accounts. Generally, our clients authorize us under the Investment Management
Agreement to directly deduct our fees from their accounts. If you provide us such authorization,
the custodian’s periodic statements will show each fee deduction from your account. You will
receive a detailed invoice for your review at least one week before the fees are deducted from
your accounts. You may withdraw this authorization for direct billing of these fees at any time
by notifying us or your custodian in writing.

Termination of Services

        You may terminate the Investment Management Agreement upon 30 days’ written notice.
If the Agreement is terminated prior to the end of the first anniversary of the Agreement, a
termination fee will apply. The termination fee is meant to cover the time and expenses we incur
as part of the initial financial plan / portfolio design and implementation phase of work which is
time intensive and generally not recouped prior to the first anniversary. In consideration of the
start-up costs associated with your account, the termination fee will based upon the actual time
spent at our standard hourly rate ($300 per hour). We will offset the termination fee by any fees
you previously paid and you will receive an itemized invoice for the time and expenses incurred.
...

TYPES OF CLIENTS
       We provide financial planning and investment management services to individuals, high
net worth individuals, and trusts and estates. There is no minimum asset size for our financial
planning or investment management services.

Part 2A of Form ADV                              5                       Kral Financial Advisors, LLC

 METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF
                          LOSS