Franklin Parker Financial LLC

Item 5 Fees and Compensation
ADVISORY FEES

The following information describes how Directional Advisors is compensated for the advisory
services we provide to our clients. The specific manner in which fees are charged and the
compensation we receive may differ between clients depending upon the individual Investment
Management Agreement with each client. Directional Advisors reserves the right to negotiate our
compensation with clients depending on the scope of our advisory relationship, and we may charge
higher or lower fees than are available from other firms for comparable services. Directional
Advisors has the general discretion to waive all or a portion of our fees, but typically only exercises
this discretion for our employees.

Investment Management Fees. In consideration for providing investment management services
and pursuant to the Investment Management Agreement with the client, Directional Advisors
charges an annual asset-based fee equals to 1.5%, based on the client’s assets under management
(“AUM”) as valued by the custodian. Please refer to the following chart and formula for a general
fee schedule and quarterly fee charged by Directional Advisors. These fees, however, are subject
to specific negotiations with each particular client, based on a variety of factors, such as the amount
of assets being managed, future deposits to the accounts under our management, the level and type
of services provided and/or the nature of the relationship with the client.

                                             Fee Schedule
          Assets Under Management                     Annualized Fee %
          No account minimum
          *Fees are charged based on
              • the size of the account,
                                                         1.5%
              • complexity of investment strategy, and
              • types of holdings.
              • Relationship with the Firm

Franklin Parker Financial, LLC                                                                      6
Form ADV Part 2A

Quarterly Fee Formula:

[Average Daily Balance x Annualized Fee]/4 = $ [Quarterly Payment]

Directional Advisors generally bills our fees on a quarterly basis in arrears. Clients may authorize
the deduction of the investment management fees from their managed accounts by the qualified
custodian Charles Schwab. Clients may elect to have our investment management fees calculated
by our Firm and deducted from their accounts. Directional Advisors does not withdraw fees
directly from client’s accounts. The client can make this election when applying for their account
at the qualified custodian(s) or at any time or cancel the existing arrangement.

Under Section 116.17(a)(3)(B) of the Rules and Regulations of the Texas State Securities Board
(“Board Rules”) any arrangement (including a general power of attorney) under which the
investment adviser is authorized or permitted to withdraw clients’ funds or securities maintained
with a custodian upon the investment adviser’s instruction to the custodian constitutes having
custody. As a result, in the state of Texas, Directional Advisors is considered to have custody of
client funds solely as a consequence of our ability to deduct fees from client accounts. Directional
Advisors does not have physical custody of client funds or securities.

Financial Planning & Consulting Services . The fees charged for financial planning services are
negotiable and vary depending on the complexity of the process undertaken, the types of issues
addressed, the scope of services provided, and the frequency with which the services are rendered.
All fees are agreed upon before entering into the Financial Planning and Consulting Agreement
you sign.

                         Financial Planning and Consulting Fee Schedule
                              Hourly                       $250 per hour
                             Fixed Fee                    $1,000 - $5,000

 Financial planning and consulting fees are assessed on an hourly basis, as a one-time project fee,
or as an annual fee payable either monthly or quarterly. An estimate for total hours will be
determined at the start of the relationship in order to determine whether hourly planning or a
project-based plan is in the Client’s best interest. Hourly fees will be invoiced upon completion of
the financial plan or the rendering of consulting services with a thirty (30) day written notice. For
one-time projects, the Client agrees to pay one-half of the total fee upon signing the Financial
Planning and Consulting Agreement and the remaining fee upon delivery of the plan.

Held Away Account Services. Directional Advisors has two types of held-away securities. The
first are securities held by a sponsor, but which are billed per the client account agreement and
paid directly by the client or referenced client account. The second type are assets held by a
custodian whereby direct deduction of fees by Directional Advisors is not possible. For these fees,
the custodian will deduct the fee per the client fee agreement and then send Directional Advisors
their portion of the fee.

Franklin Parker Financial, LLC                                                                    7
Form ADV Part 2A

Additional Fees and Expenses. All brokerage commissions, custodial fees, stock transfer fees,
transactional charges imposed directly by mutual, index or exchanged-traded funds, fees imposed
by variable annuity providers, certain deferred sales charges, odd-lot differentials, transfer taxes,
wire transfer and electronic fund fees and other similar charges incurred in connection with
transactions for the client account(s) imposed by unaffiliated third parties will be paid out of the
assets in the client account(s) and are in addition to the fees paid by clients to our Firm. For more
information on our brokerage practices, please refer to the Item 12 Brokerage Practices of this
Brochure.
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TYPES OF CLIENTS

Directional Advisors offers investment advisory services to a diversified group of clients including
individuals, high net worth individuals, trusts, estates, charitable/non-profit organizations,
corporations, and other business entities. Client relationships may vary in scope and length of
service.

Certain investments we recommend alternative investments such as interests in private funds are
available to accredited investors only. Under Rule 506 of Regulation D of the Securities Act, an
accredited investor, in the context of a natural person, includes anyone who earned income that
exceeded $200,000 in each of the prior two years or has a net worth over $1 million excluding the
value of the person’s primary residence. Alternative investments are recommended to clients only
after a review of their financial situation and goals.

ACCOUNT REQUIREMENTS

Directional Advisors does not require a minimum account for our investment management
services. However, Directional Advisors in its sole discretion may require a minimum account
balance requirement based on various criteria (i.e., complexity of service, length of service,
negotiations with the client, etc.).