The Keystone Financial Alliance LLC

Item 5 – Fees and Compensation

Advisor Managed Accounts

Advisor Managed accounts are custodied at Charles Schwab & Co. (“Schwab”). The specific
manner in whichfees are charged by the Firm is established in a client’s written agreement. Our
annual portfolio management fee is billed and payable, quarterly in advance, based on the
balance at end of billing period.

                         Account Balances               Annual Fee
                         $0 - $1,000,000                1.50%
                         $1,000,001 -$2,000,000         1.25%
                         $2,000,001 - $5,000,000        1.00%
                         $5,000,001+10,000,000          0.85%

The initial fee is due during the first full billing cycle after the client’s account is accepted and
opened and will be based on the asset value of the account on that date. The initial fee will be
prorated according to the number of days remaining in the calendar quarter. Thereafter, the fee
will be calculated by multiplying the fair market value of the assets in the account as of the last
trading day of each calendar quarter by the annual fee and then dividing that result by 4, which
represents each quarter. The account value is calculated as the market value of all long and short
securities positions in the account and will not be reduced by any margin or other indebtedness
of the client with respect to such securities or other investments. Fees will not be adjusted or
pro-rated for additions to or withdrawals from the account during the calendar month, other
than a complete withdrawal in connection with a termination of the Account Agreement.

Fees are automatically deducted from the account pursuant to the advisory agreement and are

not billed separately to clients. Clients must maintain or deposit sufficient funds in the account
to cover payment of all fees authorized by the contract. If there are no funds to cover the fees,
then TKFA can liquidate assets to cover fees. The amount of the fee will be shown on the
statement received by theCustodian. TKFA urges clients to carefully review such statements.

Upon termination of an account, any prepaid, asset-based fees will be prorated according to the
days the account was opened during the calendar month and excess fees will be re-bated to the
client. All custodialtermination and transfer fees assessed by Charles Schwab, if any, will be the
responsibility of the client.

Other Fees

In addition to the advisory fees paid to TKFA, clients can also incur certain charges imposed by
other third parties, such as broker-dealers, custodians, trust companies, banks, and other
financial institutions (collectively “Financial Institutions”). These additional charges include
securities brokerage commissions, transaction fees, custodial fees, fees charged by the
Independent Managers, charges imposed directly by a mutual fund or ETF in a client’s account,
as disclosed in the fund’s prospectus (e.g., fund management fees and other fund expenses,
12(b)-1 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.
Some mutual funds within this program pay 12(b)-1 service fees (normally 0.25% per year) to
the Custodian. The mutual funds the Firm could purchase or recommend offer a variety of share
classes, including some that do not charge 12(b)-1 fees and are, therefore, less expensive. These
fee arrangements will be disclosed at the request of a client and are available in the applicable
fund‘s prospectus. When accounts are held through the Custodian, we may receive these 12(b)-
1 fees. The receipt of such fees represents a conflict of interest in that there is an incentive for
Advisors to recommend funds with 12(b)-1 fees over funds that have no fees or lower fees. To
mitigate this conflict of interest, TKFA will review the receipt of 12(b)-1 fees it receives quarterly
and rebate such fees to the client’s account. There are instances in which TKFA would
recommend a mutual fund that carries a 12(b)-1 fee, even when a lower-cost share class is
available for the same fund. For example, a lower-cost class share may not be available to TKFA
due to investment minimums. In other cases, mutual funds charging 12(b)-1 fees are transferred
into TKFA. In which case the Firm may recommend the client holds the existing share class,
instead of selling the fund and buying a lower-cost share, which could result in a tax liability. In
addition, some mutual funds charge 12(b)-1 fees, but no transaction fees, while other share
classes in the same fund family do not charge 12(b)-1 fees but do charge transaction fees. Mutual
funds charging 12(b)-1 fees will be recommended when the overall cost is seen as a benefit to
the client if the anticipated transaction fees exceed the anticipated 12(b)-1 fees. When
recommending a particular mutual fund share classes, the different available share classes are
compared and reviewed along with the anticipated investment timeframe, potential tax
consequences, future anticipated transactions, and other costs to determine the best selection

for the client at that time. TKFA does not receive any part of the fees charged by Mutual Funds.

Sub Advisory Accounts

The specific manner in which fees are charged by the Firm is established in a client’s written
agreement and the sub-advisor’s billing practices. The Firm charges clients an annual advisory
fee for its services, and Sub-Advisers charge a separate fee for their portfolio management
services. Clients therefore pay two layers of fees: (1) the Firm’s advisory fee and (2) the
Sub-Adviser’s fee. The minimum account value to open an account with a sub-advisor can vary
depending on the sub-advisor, and the amount of fees charged by the sub-advisor may range
from .25% to .75% based on the account size and strategy chosen. This fee charged by the sub-
advisor is in addition to TKFA’s advisory fee.
...

Item 7 – Types of Clients

We offer investment advisory services to individuals (other than high net worth individuals)
and high net worth individuals. In general, we do not require a minimum dollar amount to open
and maintain an advisory account.