An extended SU(2) x U(1) model with two-Higgs doublets and a discrete symmetry is considered. The latter is chosen to naturally obtain suppressed and hierarchical flavor-changing neutral currents induced by Higgs bosons. As a consequence, Higgs as light as 10 GeV is consistent with the observed K(L)-K(S) mass difference and problems with perturbative unitarity are avoided. In this model, the neutral Higgs can generate CP violation in K0-K0 system and the consequences of a scheme where these exchanges provide the only source of CP violation are worked out.