K2 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 arrears at the end of each calendar quarter, pursuant to the terms of the
written investment advisory agreement between Client and Advisor. Investment advisory fees are based on the
market value of assets under management at the end of the prior quarter. Investment advisory fees typically range
from 0.50% to 1.35% annually. The fee amount paid by the Client will set forth in the written investment advisory
agreement between the Client and Advisor.

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 are negotiable at the sole discretion of the Advisor. The fees charged to Client will take
into consideration the aggregate assets under management with the Advisor at each custodian utilized by K2
Financial; however, Client accounts held at different custodians will not be aggregated for purposes of calculating the
applicable advisory fee. All securities held in accounts managed by K2 Financial will be independently valued by the
Custodian. K2 Financial will not have the authority or responsibility to value portfolio securities. The Advisor relies on
the Custodian and third-party technology to determine the account value and fee determination. As of the date of this
filing, client assets held with Charles Schwab & Co., Inc. are billed on each day assets are in the account.

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 will be incurred by the Client. However, the
Advisor shall not receive any portion of these commissions, fees, and costs.

Certain legacy clients are billed under a different fee structure than those disclosed herein. In such instances, the
specific fees and billing practices will be as described in the respective legacy client’s agreement.

Financial Planning Services
K2 Financial offers financial planning services either on an hourly basis or for a fixed fee. Hourly fees are $250-$400
per hour. Fixed engagement fees range from $500 to $10,000. The amount payable to Advisor for financial planning
services is set forth in the written financial planning agreement between Advisor and Client. Financial planning fees
are negotiable at the sole discretion of the Advisor 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 total costs will be provided to the Client
prior to engaging for these services.

Retirement Plan Advisory Services
Fees for retirement plan advisory services are charged based on an annual asset-based fee of up to 1.35% and are
billed in arrears at the end of each calendar quarter, pursuant to the terms of the retirement plan advisory agreement
between Advisor and Client. Retirement plan advisory fees are based on the market value of assets under
management at the end of the prior quarter. Fees are negotiable, in the sole discretion of the Advisor, depending on
the size and complexity of the Plan. Fees range from 0.50% to 1.35% annually. The fee amount paid by the Client will
set forth in the written investment advisory agreement between the Client and Advisor.

Custodian Charges-Additional Fees
As discussed below at Item 12 below, when requested to recommend a broker-dealer/custodian for client accounts,
K2 Financial generally recommends that Investments Distributions Co. (“SEI") or Charles Schwab & Co., Inc.
("Schwab”) serve as the broker-dealer/custodian for client investment management assets. Broker-dealers such as
SEI and Schwab charge brokerage commissions, transaction, and/or other type fees for effecting certain types of
securities transactions (i.e., including transaction fees for certain mutual funds, and mark-ups and mark-downs
charged for fixed income transactions, etc.). The types of securities for which transaction fees, commissions, and/or
other type fees (as well as the amount of those fees) shall differ depending upon the broker-dealer/custodian. While
certain custodians, including SEI and Schwab, generally (with exceptions) do not currently charge fees on
individual equity transactions (including ETFs), others do. There can be no assurance that SEI or Schwab will not

                                                       K2 Financial, Inc.
                                        233 South Glendora Avenue, Glendora, CA 91773
                                          Phone: (626) 553-6113 * Fax: (626) 389-4001
                                                  www.k2financialpartners.com

change their transaction fee pricing in the future. SEI and Schwab may also assess fees to clients who elect to
receive trade confirmations and account statements by regular mail rather than electronically.

Use of Independent Managers
As noted in Item 4, the Advisor has the option to implement all or a portion of a Client’s investment portfolio utilizing
one or more Independent Managers. To eliminate any conflict of interest, the Advisor does not earn any
compensation from any Independent Manager for recommending a Client use the services of an Independent
Manager. The Advisor will only earn its investment advisory fee as described above. Fees charged by Independent
Managers providing advisory services to Client accounts are typically in addition to the fees assessed by Advisor.
However, such combined fees shall generally not exceed a total advisory fee of 2.00%. Independent Managers will
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Item 7 – Types of Clients
K2 Financial offers investment advisory services to individuals, high net worth individuals, trusts, estates, and
retirement plans. K2 Financial generally does not impose a minimum relationship size.

Advisor reserves the right to accept or decline a potential client for any reason, in its sole discretion. Prior to
engaging Advisor to provide any of the investment advisory services described in this Brochure, the Client will be
required to enter into one or more written agreements with Advisor setting forth the terms and conditions under
which the Advisor shall render its services.

There are times when certain account restrictions are requested by a Client which will prevent K2 Financial from
accepting or continuing to manage the Client’s account. Advisor reserves the right to not accept and/or terminate
management of a Client’s account if Advisor feels that the Client imposed restrictions which would limit or prevent it
from meeting and/or maintaining the Client’s overall investment strategy.