KWB Wealth

Item 5: Fees & Compensation

Compensation for Our Advisory Services

KWB Wealth Advisory Service:

The maximum annual fee to be charged to the client’s account(s) will not exceed 1.3%. The fee to be
assessed to each account will be detailed in the client’s signed advisory agreement, LPL Account
Application or LPL Tiered Fee Authorization form. Fees are billed on a pro-rata basis quarterly in
advance based on the value of the account(s) on the last day of the previous quarter. Fees are
negotiable and will be deducted from the account(s). Please note that fees will be adjusted for
deposits and withdrawals made during the quarter and unless otherwise agreed to in writing, fees
will be assessed on cash and cash equivalents. If accounts are opened during the quarter, the pro-
rata advisory fees will be deducted during the next regularly scheduled billing cycle. As part of this
process, Clients understand the following:

       a) LPL as the client’s custodian sends statements at least quarterly, showing all disbursements
          for each account, including the amount of the advisory fees paid to our firm;
       b) Clients provide authorization permitting LPL to deduct these fees;
       c) LPL calculates the advisory fees for all fee schedules and deducts them from the client’s
          account.

        Minimum Aggregate Account Value           Maximum Aggregate Account Value    % Fee (Annual Rate)
Next                                  $0.00   up to                   $50,000.00                           1.30
Next                             $50,000.01   up to                 $100,000.00                            1.20
Next                           $100,000.01    up to                 $500,000.00                            1.00
Next                           $500,000.01    up to                $1,000,000.00                           0.95
Next                          $1,000,000.01   up to                $2,500,000.00                           0.80
Next                          $2,500,000.01   up to                $5,000,000.00                           0.65
Next                          $5,000,000.01   up to                    and Above                           0.50

Other Types of Fees & Expenses

Clients will incur transaction fees for trades executed by their chosen custodian, via individual
transaction charges. These transaction fees are separate from our firm’s advisory fees and will be
disclosed by the chosen custodian.

LPL Financial offers a trading platform with select exchange traded funds (“ETFs”) that do not charge
transaction fees. The no-transaction-fee ETF trading platform is available to clients participating in
LPL Financial’s Strategic Wealth Management (“SWM”) program. Clients will be subject to
transaction fees charged by LPL Financial for ETFs not included in LPL Financial’s platform and for
other types of securities. The limited number of ETFs available on LPL Financial’s no-transaction fee
platform may have higher overall expenses than other types of securities and ETFs not included in
the platform. Other major custodians have eliminated transaction fees for all ETFs and U.S. listed
equities, so clients may pay more for investing in the same securities at LPL Financial.

Clients may also pay holdings charges imposed by the chosen custodian for certain investments,
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,

ADV Part 2A – Firm Brochure                           Page 5                                      KWB Wealth

mutual fund sales loads, 12b-1 fees, surrender charges, variable annuity fees, IRA and qualified
retirement plan fees, and other fund expenses), mark-ups and mark-downs, spreads paid to market
makers, fees for trades executed away from custodian, wire transfer fees and other fees and taxes on
brokerage accounts and securities transactions. Our firm does not receive a portion of these fees.

Termination & Refunds

Either party may terminate the signed advisory agreement at any time. Upon receipt of your notice
of termination, LPL will process a pro-rata refund of the unearned portion of the advisory fees
charged in advance at the beginning of the quarter.

Commissionable Securities Sales

Representatives of our firm are also associated with LPL as broker-dealer registered representatives
(“Dually Registered Persons”). In their capacity as registered representatives of LPL, certain Dually
Registered Persons may earn commissions for the sale of securities or investment products that they
recommend for brokerage clients. They do not earn commissions on the sale of securities or
investment products recommended or purchased in advisory accounts through our firm. Clients have
the option of purchasing many of the securities and investment products made available through
another broker-dealer or investment adviser. When purchasing these securities and investment
products away from our firm, however, Clients will not receive the benefit of the advice and other
services we provide.

Item 7: Types of Clients & Account Requirements

Our firm has the following types of clients:
   • Individuals and High Net Worth Individuals;
   • Trusts, Estates or Charitable Organizations;
   • Pension and Profit Sharing Plans;
   • Corporations, Limited Liability Companies and/or Other Business Types

Our firm does not impose requirements for opening and maintaining accounts or otherwise engaging
us.