Davis Financial Management Inc

Item 5 - Fees and Compensation
The fees described in the following paragraphs, as well as account minimums, under certain
circumstances may be negotiable/waived with final determination made by Mr. Davis. Clients should
note that similar advisory services may (or may not) be available from other registered investment
advisers for similar or lower fees. Clients also have the option to purchase similar investment products
recommended by DFM through other brokers or agents not affiliated with DFM.

Advisory Service Fee Schedules
Asset Allocation/Portfolio Monitoring Services
The annual fee for DFM's Asset Allocation/Portfolio Monitoring Services will be charged as a percentage
of assets under management, according to the following schedule:

Assets Under Management                            Annual Fee (%)
First $1,000,000                                     1.00%
Next $2,000,000                                      0.80%
Next $2,000,000                                      0.70%
Next $5,000,000                                      0.50%
Above $10,000,000                                    Negotiable

We do not assess account opening or administrative “set-up” fees. A minimum initial asset under
management balance of $500,000 is required for this service. The minimum balance requirement may
be negotiable under certain circumstances. If the minimum balance requirement is waived, the same fee
schedule listed above is applied for billing purposes. DFM's minimum balance requirement may prevent
DFM from accepting and providing investment management services to very small client accounts. DFM
may group certain related client accounts for the purposes of achieving the minimum annual fee and
determining the annualized fee.

The specific manner in which fees are charged by DFM is established in a client’s written agreement with
DFM. Fees will generally be debited from the account in advance at the beginning of each calendar
quarter based upon the value (market value or fair market value in the absence of market value), of the
client's account at the end of the previous quarter.

    The first billing cycle will begin once the client agreement is executed, and account assets have settled
    into the client’s separately identifiable account held by the custodian of record. The client’s written
    authorization is required for the custodian of record to deduct advisory fees from the account. By
    signing the custodian’s account opening documents, the client is authorizing the custodian to withdraw
    our fee, and the custodian will remit the Asset Allocation/Portfolio Monitoring Services fee directly to
    DFM. We do not entertain client requests to directly pay the firm its Asset Allocation/Portfolio
    Monitoring Services fee in lieu of having the advisory fee withdrawn from their investment account. The
    fee deducted from a client’s account will be noted on account statements that the client receives
    directly from the account custodian of record, and we encourage our clients to review this information. 4

    DFM’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and
    expenses which shall be incurred by the client. Clients may incur certain charges imposed by custodians,
    brokers, third party investment and other third parties such as fees charged by managers, 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 funds and ETFs 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, DFM’s fee, and DFM shall not receive any portion of
    these commissions, fees, and costs. Additional information about DFM’s brokerage recommendations is
    included in Item 12.

    Financial Planning Fees
    Initial Consultation
    Initial consultation Financial Planning fees will be charged in one of two ways:

    As a fixed fee, typically ranging from $1,500 to $8,000. Fixed fees are quoted to a client based on an
    estimate of the time required to complete the service (at DFM's standard hourly rate of $200) and will
    depend on the nature and complexity of each client's circumstances. Half the fee is generally due upon
    signing the financial planning agreement, with the balance due upon presentation of the financial plan
    to the client.

    On an hourly basis, typically charged at $250 per hour, depending on the nature and the complexity of
    each client's circumstances, as well as the DFM staff member performing the work. If appropriate, an
    estimate of total hours may be determined at the start of the advisory relationship. Half of the
    estimated fee may be due upon signing the financial planning agreement, with the balance (based on
    actual hours) due upon presentation of the plan to the client. Otherwise, DFM will invoice the client
    monthly, or quarterly, in arrears for fees due each billing period.

    Financial Planning fees encompass the written financial plan and related client consultations for a six-
    month period after entering into the financial planning agreement.

    Ongoing Financial Planning Services
    After expiration of the six-month follow-up period to an initial consultation, Financial Planning fees for
    clients who choose to enter into ongoing financial planning services will be charged an annual fee

4   Periodic account value variances between the firm’s invoice and custodian statement (beyond the firm’s control) may occur
    due to late trade settlement, dividend distribution, etc., requiring adjusted transaction reporting from the custodian of record.

typically ranging from $2,000 to $8,000. This fee will be billed monthly or quarterly, in advance, and is
...

Item 7 - Types of Clients

    DFM clients consist of individuals, high net worth individuals, small businesses, and their pension and
    profit- sharing (retirement) plans. We also offer our services to corporations, trusts, foundations, and
    charitable organizations. Refer to Item 5 for details involving minimum investment account size
    requirements.