T2 Asset Management LLC

Item 5: Fees and Compensation

as a PKS registered representative, are prohibited from earning an advisory fee on the securities
value transferred from an advisory client’s PKS brokerage account unless commissions earned
on such securities transactions occurred at least a 12–18 months prior to the transfer. Please see
Item 10 for detailed information and conflicts of interest.

E. Important Disclosure – Custodian Investment Programs
Please be advised that certain of the firm’s investment adviser representatives are registered
with a broker-dealer and/or the firm is a broker-dealer or affiliated with a broker-dealer. Under
these arrangements, we can access certain investment programs offered through the broker-
dealer that offer certain compensation and fee structures that create conflicts of interest of
which clients need to be aware. As such, the investment adviser representative and/or the firm
may have an economic incentive to recommend the purchase of 12b-1 or revenue share class
mutual funds offered through the broker-dealer platform rather than from the investment
adviser platform.
Please be advised that the firm utilizes certain custodians/broker-dealers. Under these
arrangements we can access certain investment programs offered through such custodian(s)
that offer certain compensation and fee structures that create conflicts of interest of which
clients need to be aware. Please note the following:
Limitation on Mutual Fund Universe for Custodian Investment Programs: Please note that as a
matter of policy we prohibit the receipt of revenue share fees from any mutual funds utilized for
our advisory clients’ portfolios. There are certain programs in which we participate where a
client’s investment options may be limited in certain of these programs to those mutual funds
and/or mutual fund share classes that pay 12b-1 fees and other revenue sharing fee payments,
and the client should be aware that the firm is not selecting from among all mutual funds
available in the marketplace when recommending mutual funds to the client.
Conflict Between Revenue Share Class (12b-1) and Non-Revenue Share Class Mutual Funds:
Revenue share class/12b-1 fees are deducted from the net asset value of the mutual fund and
generally, all things being equal, cause the fund to earn lower rates of return than those mutual
funds that do not pay revenue sharing fees. The client is under no obligation to utilize such
programs or mutual funds. Although many factors will influence the type of fund to be used, the
client should discuss with their investment adviser representative whether a share class from a
comparable mutual fund with a more favorable return to investors is available that does not
include the payment of any 12b-1 or revenue sharing fees given the client’s individual needs
and priorities and anticipated transaction costs. In addition, the receipt of such fees can create
conflicts of interest in instances (i) where our adviser representative is also licensed as a
registered representative of a broker-dealer and receives a portion of 12b-1 and or revenue
sharing fees as compensation – such compensation creates an incentive for the investment
adviser representative to use programs which utilize funds that pay such additional
compensation; and (ii) where the custodian receives the entirety of the 12b-1 and/or revenue
sharing fees and takes the receipt of such fees into consideration in terms of benefits it may
elect to provide to the firm, even though such benefits may or may not benefit some or all
of the firm clients.

                      Part 2A of Form ADV: T2 Asset Management, LLC Brochure

Item 7: Types of Clients
T2 Asset Management offers its investment advisory services to various types of clients including
individuals and high-net-worth individuals, small businesses, and institutions.
In general, we require a minimum account size of $100,000. At our discretion, we may waive this
minimum account size. The firm may also combine account values for clients and their children,
joint accounts with their spouse, and other types of related accounts to meet the stated
minimum. T2 Asset Management has the right to terminate a client’s account if it falls below a
minimum size, which, in our sole opinion, is too small to effectively manage.

                     Part 2A of Form ADV: T2 Asset Management, LLC Brochure