JK Financial Inc

Item 5 – Fees and Compensation

The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into a written
agreement with the Advisor.

A. Fees for Advisory Services
Investment Management Services
Investment advisory fees are paid quarterly in advance of each calendar quarter, pursuant to the terms of the
investment advisory agreement. Investment advisory fees are based on the market value of assets under
management at the end of the prior calendar quarter. Investment advisory fees range from 0.50% to 1.75% annually
based on several factors, including: the scope and complexity of the services to be provided; the level of assets to be
managed; and the overall relationship with the Advisor. Relationships with multiple objectives, specific reporting
requirements, portfolio restrictions and other complexities may be charged a higher fee.

The investment advisory fee in the first quarter of service is prorated from the inception date of the account[s] to the
end of the first quarter. Fees may be negotiable at the sole discretion of the Advisor. The Client’s fees will take into
consideration the aggregate assets under management with the Advisor. All securities held in accounts managed by
J.K. Financial will be independently valued by the Custodian. The Advisor will conduct periodic reviews of the
Custodian’s valuation to ensure accurate billing.

The Advisor’s fee is exclusive of, and in addition to any applicable securities transaction and custody fees, and other
related costs and expenses described in Item 5.C below, which may be incurred by the Client. However, the Advisor
shall not receive any portion of these commissions, fees, and costs.

Financial Planning Services
J.K. Financial offers financial planning services at an hourly rate of up to $250 per hour. Fees may be negotiable
based on the nature and complexity of the services to be provided and the overall relationship with the Advisor. An
estimate for total hours and overall costs will be provided to the Client prior to engaging for these services.

B. Fee Billing
Investment Management Services
Investment advisory fees are calculated by the Advisor or its delegate and deducted from the Client’s account[s] at the
Custodian. The Advisor shall send an invoice to the Custodian indicating the amount of the fees to be deducted from
the Client’s account[s] at the beginning of the respective quarter. The amount due is calculated by applying the
quarterly rate (annual rate divided by 4) to the total assets under management with J.K. Financial at the end of the
prior quarter. Clients will be provided with a statement, at least quarterly, from the Custodian reflecting deduction of
the investment advisory fee. Clients are urged to also review and compare the statement provided by the Advisor to
the brokerage statement from the Custodian, as the Custodian does not perform a verification of fees. Clients provide
written authorization permitting advisory fees to be deducted by J.K. Financial to be paid directly from their account[s]
held by the Custodian as part of the investment advisory agreement and separate account forms provided by the
Custodian.

Financial Planning Services
Financial planning fees may be invoiced up to fifty percent (50%) of the expected total fee upon execution of the
financial planning agreement. The balance shall be invoiced upon completion of the agreed upon deliverable[s].
                                                     J.K. Financial, Inc.
                                        8222 Douglas Ave, Suite 590, Dallas, TX 75225
                                         Phone: (214) 706-4300 * Fax: (214) 706-4262
                                                   www.jkfinancialinc.com

C. Other Fees and Expenses
Clients may incur certain fees or charges imposed by third parties, other than J.K. Financial, in connection with
investments made on behalf of the Client’s account[s]. The Client is responsible for all custody and securities
execution fees charged by the Custodian, as applicable. The Advisor's recommended Custodian does not charge
securities transaction fees for ETF and equity trades in a Client's account, provided that the account meets the
terms and conditions of the Custodian's brokerage requirements. However, the Custodian typically charges for
mutual funds and other types of investments. The fees charged by J.K. Financial are separate and distinct from
these custody and execution fees.

In addition, all fees paid to J.K. Financial for investment advisory services are separate and distinct from the
expenses charged by mutual funds and ETFs to their shareholders, if applicable. These fees and expenses are
described in each fund’s prospectus. These fees and expenses will generally be used to pay management fees for
the funds, other fund expenses, account administration (e.g., custody, brokerage and account reporting), and a
possible distribution fee. A Client may be able to invest in these products directly, without the services of J.K.
Financial, but would not receive the services provided by J.K. Financial which are designed, among other things, to
assist the Client in determining which products or services are most appropriate for each Client’s financial situation
and objectives. Accordingly, the Client should review both the fees charged by the fund[s] and the fees charged by
J.K. Financial to fully understand the total fees to be paid. Please refer to Item 12 – Brokerage Practices for
additional information.

D. Advance Payment of Fees and Termination
Investment Management Services
J.K. Financial may be compensated for its investment management services in advance of the quarter in which
services are rendered. Either party may terminate the investment advisory agreement, at any time, by providing
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Item 7 – Types of Clients

J.K. Financial offers investment advisory services to individuals, high net worth individuals, trusts, estates,
businesses, and charitable organizations. J.K. Financial generally requires a minimum relationship size of
$1,000,000 to effectively implement its investment process, which may be waived at the Advisor’s sole discretion.