Kane Financial LLC

Item 5: Fees and Compensation

Please note, unless a client has received the firm’s disclosure brochure at least 48 hours
prior to signing the investment advisory contract, the investment advisory contract may
be terminated by the client within five (5) business days of signing the contract without
incurring any advisory fees. How we are paid depends on the type of advisory service we
are performing. Please review the fee and compensation information below.

Investment Management Services

Our Standard Advisory Fee is based on the market value of the assets under
management and is calculated as follows:

                 Account Value                       Annual Advisory Fee

                 $0 - $500,000                               1.00%

            $500,000 - $1,000,000                            0.75%

             $1,000,000 and Above                            0.50%

Fees are paid monthly or quarterly in arrears based on the average daily balance of the
account(s). Fees are negotiable. The Standard Advisory Fee is a blended fee calculated by
assessing the percentage rates using the predefined levels of assets as shown in the above
chart, resulting in a combined weighted fee.
For example, an account with an average daily balance totaling $2,000,000 would pay an
effective fee of 0.6875% with the annual fee of $13,750. The fee is determined by the
following calculation: (($500,000 x 1.00%) + ($500,000 x 0.75%) + ($1,000,000 x 0.50%)).
The annual fee is then divided by either twelve for monthly fee deduction or by four for
quarterly fee deduction. No increase in the annual fee shall be effective without prior
Client consent. Accounts initiated or terminated during a calendar billing period will be
charged a prorated fee based on the amount of time remaining in the billing period.
Advisory fees are directly debited from client account(s) held at a qualified custodian
upon Client’s written approval of such arrangement and the periodic submission to the
qualified custodian of the amount of advisory fees to be charged to Client’s account(s).
The Custodian will send an account statement to the Client at least quarterly, identifying
the amount of funds and each security in the account at the end of the period and setting
forth all transactions in the account during the period, including the amount of our
Standard Advisory Fee. Fees will typically be paid from cash balances or through the
liquidation of money market shares held in the Client’s account, however, if money

market shares or cash value are not available, other investments may be liquidated to pay
such fees when due. Clients may also choose to pay by check.
Fee-Based Variable Annuities: For assets held in a Fee-Based Variable Annuity, Adviser
charges an annual advisory fee of 0.50%, billed monthly or quarterly in arrears. Fees are
calculated based on the ending market value of the account on the last business day of the
billing period and multiplying it by 0.50% divided by twelve for monthly fee deduction or
by four for quarterly fee deduction.
Accounts initiated or terminated during an interim billing period will be charged a
prorated fee based on the amount of time remaining in the billing period. Fees will be
directly deducted from the Client’s account held at the third-party custodian upon
Client’s written approval of such arrangement. The custodian will send an account
statement to the Client at least quarterly showing the amount of the fee.
An account may be terminated with written notice at least 7 calendar days in advance.
Since fees are paid in arrears, no refund will be needed upon termination of the account.

Financial Planning Services

Financial Planning Services is billed at our hourly rate of $200.00 per hour, depending
on complexity. The fee may be negotiable in certain cases and is due at the completion of
the engagement. In the event of early termination by a client, any fees for the hours
already worked will be prorated and due upon the termination date. Fees for this service
may be paid by electronic funds transfer or check. At the commencement of the
engagement, an estimate of the number of hours needed to complete the work will be
notated in the Financial Planning Agreement.
Employee Benefit Plan Services
Employee Benefit Plan Services are either billed based upon a percentage of assets under
management (AUM) according to the following fee schedule or clients will pay a fixed
annual fee.
AUM Fee Schedule:

                       Plan Assets                          KF’s Fee

                     All Plan Assets                         0.50%

The annual fees are negotiable and are assessed pro rata, in arrears, from the assets in the
account on a quarterly basis. Fees are calculated at the end of each calendar quarter using
the ending market value of the account on the last business day of the quarter and
multiplying it by 0.125%.

No increase in the annual fee shall be effective without prior Client consent. Accounts
initiated or terminated during a calendar quarter will be charged a prorated fee based on
the amount of time remaining in the billing period.
Fees for this service are deducted directly from the plan assets by the Custodian or the
Plan Sponsor may choose to be invoiced directly. This service may be terminated with 7
calendar days’ advance notice.
Fixed Fee:
KF may charge a fixed fee per quarter instead of percentage of assets, based on the
number of plan participants, investment management services, travel, meeting
frequency, and other services. Fixed fees range from $300 to $1,000 per quarter billed in
arrears.
This fee is negotiable and can be revisited at any time at the discretion of the Advisor
and/or plan sponsor. The plan sponsor has the ability to pay this fee from the business or
to charge to plan assets on a pro rata basis. The employer may be responsible for paying
fees leveraged by the Custodian and Third-Party Administrator (TPA). Prior to
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Item 7: Types of Clients

We provide financial planning and portfolio management services to individuals, high
net-worth individuals, pension and profiting sharing plans, and small businesses.
We do not have a minimum account size requirement to open or maintain an account
under our management.