Financial Management Associates 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 and without penalty. How we
are paid depends on the type of advisory service we are performing. Please review the fee and compensation
information below.

How we are paid depends on the type of advisory service we are performing. The fee and compensation
information are listed below.

Standard Advisory Fee
Our standard advisory fee is based on the market value of the assets under management and is calculated as
follows:
                                 Account Size                    Annual Advisory Fee
                       $0-$500,000                                     1.25%
                       $500,001-$3,000,000                             1.00%
                       $3,000,001 - $5,000,000                         0.80%
                       $5,000,001 - $10,000,000                        0.75%

The annual fees are negotiable and are pro-rated and paid in arrears on a quarterly basis. All deposits and
withdrawals of $50,000 or more shall be pro-rated for that billing period. FMA may reduce management fees
depending on the type of investments managed. Clients who receive advice about mutual funds or ETFs are
always advised that they will, in effect, be paying two levels of fees, i.e., a fee to the applicant and a fee to
the fund manager.

Refund and Termination Procedures
The professional relationship may be terminated by FMA or client at will. FMA (on a prorated basis) shall
refund all unapplied fees. FMA will also impose a service charge of one percent (1%) per month on all
outstanding fees which have not been paid by the sixtieth (60th) day following submission of original billing.

Planning and Consulting Fees
Associated Persons of FMA provide financial planning and non-securities advice consistent with the client's
financial and tax status, age, risk tolerance and investment objectives. Advice on topics including tax planning,
estate planning, business planning, retirement planning, education planning budgeting and cash flow is also
available. A fee of between $100-$250/hr may be imposed depending on who is providing the advice.
($100/hr. for administrative, $150/hr. for professional time, $250/hr. for principal's time). In addition, a flat
fixed fee may be negotiated for certain financial planning services. Any proposed financial planning service
fees associated with the above will be discussed and negotiated with the Client and agreed to by separate
engagement letter.

In the event that there is any conflict of interest which may arise, it is the formalized policy of the firm to
immediately advise the client of such conflict of interest and to always place the interests of the client ahead
of the interests of the firm and its associated persons.

Other Types of Fees and Expenses
Our fees are exclusive of brokerage commissions, transaction fees, and other related costs and expenses that
may be incurred by the client. Clients may incur certain charges imposed by custodians, brokers, and other
third parties such as custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer
and electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions. Mutual

fund and exchange traded funds also charge internal management fees, which are disclosed in a fund’s
prospectus. Such charges, fees and commissions are exclusive of and in addition to our fee, and we shall not
receive any portion of these commissions, fees, and costs.
Item 12 further describes the factors that we consider in selecting or recommending broker-dealers for
client’s transactions and determining the reasonableness of their compensation (e.g., commissions).
We do not accept compensation for the sale of securities or other investment products including asset-based
sales charges or service fees from the sale of mutual funds.

Item 7: Types of Clients
FMA provides services to individuals, pension plans, profit sharing plans, trusts, estates, charitable
organizations, corporations, and other business entities. FMA does not have any minimum account size
requirements.