Friedlander Brenda S

Item 5 - FEES AND COMPENSATION

INVESTMENT MANAGEMENT
For its investment management services, Spectrum charges a fee based on a percentage of the market
value of the investments held in each client’s account. We assess a minimum annual investment
management fee of $10,000.

All assets in the account are included in the fee assessment unless specifically identified in writing for
exclusion. The annual management fee is prorated and billed quarterly, in advance. The quarterly fee is
computed on the last day of the billing period by determining the market value of the account assets as
provided by the client’s custodian. Any fee for a period of less than the full quarter, either upon
commencement or termination of this Agreement, will be prorated based on the number of days remaining
in the billing period.

Spectrum Financial Management has some clients who are under a semi-annual advisory agreement. These
clients generally do not meet Spectrum Financial Management’s minimum account size and as such, these
clients have a reduced minimum fee of $2,000. For these clients, the annual management fee is prorated and
billed semi-annually, in advance. The semi-annual fee is computed on the last day of the billing period by
determining the market value of the account assets as provided by the client’s custodian. Any fee for a
period of less than the semi-annual period, either upon commencement or termination of this Agreement,
will be prorated based on the number of days remaining in the billing period.

If assets are deposited into or withdrawn from the account after the inception of a billing period, the fee
payable with respect to such assets will be prorated (based on the number of days remaining in the billing
period) only if proration will result in at least a $250 increase or decrease in the fee assessment. Any fee
adjustments will be made in the subsequent billing period.

Client may withdraw account assets on notice to us, subject to the usual and customary securities
settlement procedures. However, Client acknowledges that Advisor designs client portfolios as long-term
investments and asset withdrawals may impair the achievement of a client’s investment objectives.

Fees charged by Advisor are for investment management services and do not include any service,
execution or transaction fees that may be charged by the Custodian or executing broker, securities issuers
(such as mutual funds), or other third-party administrators.

Neither Spectrum, nor its principal or employees 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.

Unless otherwise negotiated between the Firm and the client, the annual fee is calculated according to the
following standard fee schedule:

                             Spectrum Financial Management Fee Schedule

                       Value of Account Assets                                 Annual Billing Rate
 On assets valued up to $1 million                                        1.00%
 On assets valued above $1 million                                        0.50%

 Minimum Annual Investment Management Fee                                  $10,000

Services provided for the above fees are for investment advice and quarterly reporting. The client’s
investment management fee to the Firm is determined in accordance with the above standard fee
structure, with exceptions negotiated on a case-by-case basis at our discretion. Any deviations from the
fee structure are based on a number of factors including the nature and length of the client relationship,
the services requested, account composition, the amount of work involved, the amount of assets placed
under management and the attention needed to manage the account.

Clients customarily authorize Spectrum to deduct its quarterly investment advisory fee directly from their
custodial account. When there is no cash available in a client’s portfolio to allow us to deduct our
management fee, we will sell shares of an investment to make cash available. The authorization to deduct
our management fee from the client account is granted under the terms of the client’s signed investment
management agreement and the client’s instructions to the custodian. The Firm sends an itemized fee
invoice showing the fee calculation to each client at the time it invoices the client’s custodian to deduct
and transmit its fees. It is the client’s responsibility to verify the accuracy of the fee calculation, as the
custodian will not determine whether the fee is properly calculated. At the discretion of the Firm, clients
may arrange to pay their fee directly to the Firm. Under this arrangement, payment is due upon client’s
receipt of our billing invoice.

In certain cases clients may request that Spectrum purchase, maintain, or consolidate preexisting or other
securities positions in custodial accounts maintained with the Firm, that are not consistent with the Firm’s
investment strategy. In such cases, Spectrum will not charge a management fee on such assets, with the
specific understanding that these are non-managed assets for which client is responsible for determining
the suitability of maintaining such a position. The Firm will not sell such securities without specific
written instructions from the client.

TERMINATION OF INVESTMENT MANAGEMENT RELATIONSHIP
Clients or the Firm may terminate the relationship upon written notice to other party. The Firm does not
assess any fees related to termination but will be entitled to all management fees earned up to the date of
termination. Prepaid management fees will be prorated based on the days remaining in the billing period
and refunded to the client by check within five business days of termination.

If a copy of this Form ADV Part 2A disclosure statement was not delivered to the client at least 48 hours
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Item 7 - TYPES OF CLIENTS
Our clients include individuals and high net worth individuals and their trusts. We have established a
$1,000,000 minimum portfolio value for establishing a client relationship with our Firm. This minimum
may be waived in certain circumstances.
As a result of our minimum account value and minimum annual fee requirements, Spectrum’s services
may not be appropriate for everyone.