Freedman Financial Associates Inc

Item 5 - Fees and Compensation

The amount of advisory fees will be disclosed prior to services being provided and agreed upon
in the appropriate written investment advisory agreement.
Financial Planning

Clients pay a fee, based on an hourly rate of $300, to Freedman Financial with a minimum
financial planning fee of $3,000 not to exceed a maximum of $20,000. One half of the proposed
fee is due at signing of the financial planning agreement and the client is billed for the balance
upon delivery of the financial plan.

If a client chooses to establish an asset management relationship with Freedman Financial by
opening a Wrap Program account, future financial planning fees, including any current
outstanding balance, may be waived at the discretion of Freedman Financial.

The client or Freedman Financial can terminate the financial planning agreement at any time by
providing written notice to the other party. Upon termination the client is entitled to a prorated
refund of the unearned portion of any prepaid fee. Any fees owed to Freedman Financial by the
client upon termination will be billed to the client.

The advisory representatives associated with Freedman Financial are also separately registered
as licensed securities representatives with LPL. In such capacity, the advisory representatives
may sell securities to clients and receive normal and customary compensation (e.g., commissions
and 12b-1 fees or trails) as a result of the securities transactions. This presents a conflict of
interest in that the advisory representatives have an incentive to recommend investments when
providing financial planning services based on compensation received rather than client needs.
To address this conflict, clients are advised that they are under no obligation to use an advisory
representative of Freedman Financial for implementation of financial planning
recommendations; investment products and asset management services may be purchased
through other brokers or agents not affiliated with the advisory representatives. In addition, to
the extent that client’s do subsequently hire an advisory representative of Freedman Financial for
assistance in his/her capacity as a registered representative of LPL or as an advisory
representative of Freedman Financial, additional discussions take place regarding the
relationship and, in the case of opening a Wrap Program account, the client would be required to
enter into a written investment advisory agreement with Freedman Financial.

For additional information, refer to Item 12 – Brokerage Practices.

Item 7 - Types of Clients

The majority of our clients are typically individuals and families. We provide services to clients
in their retirement years as well as clients in the accumulation phase of their life.