Sorrento Pacific Financial LLC

Item 5 – Fees and Compensation

This section provides information concerning fees and compensation for investment advisory services and
programs available through SPF. Additional information regarding fees and compensation for the Contour
wrap fee program offered by SPF can be found in the Contour Wrap Fee Program Brochure.

SPF and our IARs are compensated for our services by charging an advisory fee. Advisory fees are typically
calculated as a percentage of assets under management. Fees vary based on the type of advisory service

provided to a client. The actual fee is disclosed prior to the client signing the agreement. The advisory fee is
shared between your IAR, the IAR’s financial institution if applicable, and SPF. Although platform fees and
third-party money manager fees are generally non-negotiable, your IAR can negotiate his or her advisory fee.

Specific program fees are discussed below. The fee charged can be higher or lower than a program’s listed
fees depending on the client’s unique circumstances. The fee charged by SPF is established in the client’s
written agreement with SPF. Depending on the program selected, fees will be billed on a monthly or quarterly
basis in advance or arrears. All fees are specified in the client agreement, which typically authorizes the
custodian to directly deduct the advisory fees from a client's account.
Certain advisory programs offer the ability to “household” eligible accounts for a lower fee schedule.
Householding involves aggregating your accounts for fee calculation purposes, which can help you qualify for
a lower fee. A household is generally a group of accounts having the same address of record or same Social
Security number. Households are established through the IAR and must be requested by the client. Neither
SPF nor our IARs are responsible for identifying eligible accounts. The client is responsible for determining if
they have eligible accounts and ensuring those accounts remain eligible. SPF and our IARs earn higher fees if
clients elect not to household eligible accounts where available. Clients should discuss the program fee and
any potential fee reduction available through householding with their IAR.

Advisory fees are charged to clients of SPF’s various advisory platforms in exchange for account management,
investment advice, consultation, and other advisory services offered under the platforms. Advisory fees are
separate and distinct from fees and charges imposed on clients by custodians, brokers (including SPF), third
party investment advisers, and other third parties, such as fees charged by managers, transaction fees,
custodial maintenance fees, fees and taxes on brokerage accounts and securities transactions, and underlying
mutual fund fees and expenses paid to mutual funds and other investment product companies. Some
common transactions that include associated processing fees and charges include trading, transfers,
distribution of funds, systematic investments and withdrawals, and mutual fund exchanges. Many different
circumstances can cause fees and charges to vary account by account. Some of these circumstances include
the type of security being traded and dollar amount and/or share quantity of the trade. Custodial fees vary
between custodians and the type of account. For instance, some types of retirement accounts carry higher
custodial maintenance fees than others.

Clients are charged fees for specific accounts custodied with Pershing including for: outgoing transfers, wired
funds, stop payments, direct registration of securities, paper statements and confirms, margin extensions,
and IRA maintenance and termination. See “Other Fees and Expenses” below.

The costs associated with an advisory account may be more than costs associated with a traditional brokerage
account arrangement where the client pays a commission for each transaction but does not receive ongoing
investment advice, this is particularly true for clients that intend to have a low number of transactions or
follow a buy-and-hold approach. If you intend to follow a buy-and-hold investment strategy or do not wish
to receive ongoing investment advice or management services, you should consider opening a commission-

based brokerage account rather than an advisory account.

In advisory accounts, a client is paying for ongoing investment advice from an IAR. An IAR recommending an
advisory account to a client receives a portion of the advisory fee as a result of the client’s participation in an
advisory program. In some circumstances, this compensation will be more than what the IAR would receive
if the client had a brokerage account through SPF. If compensation would be more in recommending an
advisory account than a brokerage account, an IAR has a financial incentive to recommend advisory programs
or services over brokerage programs or services. Notwithstanding that conflict of interest, SPF and our IARs
take their responsibility to clients seriously and will recommend an advisory program or service to a client
only if it is believed to be in the client’s best interest.
The amount of compensation an IAR can receive varies between advisory programs and services, therefore,
an IAR has a financial incentive to recommend one advisory program or service that permits the IAR to charge
the higher compensation over another advisory program or service where the IAR’s level of compensation is
less. Recommendations for specific advisory programs and services are made based on the IARs best
judgment based on the information a client provides to the IAR.

In most circumstances, IARs are also registered representatives with SPF and, as such, may act in a broker-
dealer capacity. In such capacity, an IAR may sell securities through SPF and receive normal and customary
commissions as a result of purchases and sells as well as 12b-1 fees from mutual funds held in client accounts.
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Item 7 – Types of Clients

SPF, through its IARS, offers investment advisory services to individuals, high net worth individuals, pension
and profit-sharing plans, charitable institutions, and corporations and other business entities. Our clients can
have both fee-based advisory accounts and commission-based brokerage accounts. Depending on an IAR’s
registrations and qualifications, and a client’s preferences and needs, our representatives IARs provide
advisory services, brokerage services, or both.

The initial minimum account size for the Contour programs is listed below.

                       Contour Program                                    Minimum
                       Advisor as Portfolio Manager                       $25,000
                       Fund Strategist Portfolios                         As low as $2,000
                       Separately Managed Accounts                        $100,000
                       Unified Managed Accounts                           $100,000

The initial Contour account minimum can, however, be waived at SPF’s discretion, considering various
factors. Such factors include length of client relationship, or combined values of other household/family
member accounts. In the SMA program, should the SMA Manager require a higher minimum, the higher
minimum will apply. In the UMA program, the minimum account size for each model style is determined by
the Model Provider or Sub- Manager.

The minimum account size for these programs can be waived at SPF’s discretion. TPIA advisory programs also
require minimum investment amounts that vary by program. We do not require a minimum asset amount for
the Retirement Services Program or Financial Planning & Consulting Services.