Dixon Financial Services Inc

Item 5         Fees and Compensation
Our current fee schedule is below.

Client Assets                            Per Annum               Per Quarter
Up to $250,000                             1.50%                   0.38%
Next $250,000 to $500,000                  1.00%                   0.25%
Next $500,000 to $1,000,000                0.75%                   0.19%
Next $1,000,000 to $2,000,000              0.55%                   0.14%
Amounts above $2,000,000                   0.40%                   0.10%

Upon execution of the “Dixon Financial Services Investment Adviser Agreement” and the initial
allocation of funds invested, prorated fees for the current quarter are due and payable. We
deduct subsequent fees quarterly, in advance, from each client’s account based upon the market
value of the account as of the last day of the previous calendar quarter. The Asset Allocation
Advisory Service may be terminated by either party thirty (30) days after written notice. Any
prepaid fees will be prorated from the date of termination and DFS will refund the difference.

In the event a client deposits $50,000 or 1% (whichever is greater) of AUM more during a
particular quarter, such client will be billed a pro-rata advisory fee based on the remaining
number of the days in such quarter. Conversely, in the event a client withdraws $50,000 or 1%
(whichever is greater) of AUM more during a particular quarter, such client will be refunded a
pro-rata advisory fee based on the remaining number of days in such quarter.

Accounts managed by DFS but serviced by another independent registered investment adviser or
an asset management company will be separately billed by such independent investment adviser.
The independent investment adviser may also bill accounts for our fees as well. The total
amount of our fees and the independent investment adviser’s fees, on a percentage basis, is
always approved in advance by each client and may be .1% to .5% higher than the fee schedule
above, depending on the third party and the size of the account.

DFS does not negotiate fees. There may be certain exceptions in unusual situations, such as
when we review and report on a client’s assets that we do not directly manage. In these
instances, which we review on a case-by-case basis, we charge an administrative fee on either an
hourly or a fixed-fee basis as quoted.

Our clients are responsible for additional fees and expenses not included in the above schedule.
In general, all of our clients will incur transaction fees (commissions) from their custodian, as
well as mutual fund fees. Unless specifically requested by a client, we do not purchase funds
with sales fees, including front-end loads and surrender fees. This helps keep our clients’ costs
down. A few clients incur custodian fees, including holding and maintenance fees for a small
number of specific assets that we do not include in most accounts. Please refer to Item 12 of this

brochure for more details about brokerage (custodian) fees. Although we don’t generally
recommend annuities to our clients, some of our clients do have them and they are often subject
to custodian fees.

Neither DFS nor any of its supervised persons accepts compensation for the sale of securities or
other investment products.

Item 7         Types of Clients
Dixon Financial Services has the following types of clients:

      Individuals who have personal investment or retirement accounts such as IRAs.
      Business owners who maintain investment accounts for the company or act as plan
       administrators for their company retirement and pension plans.
      Trustees who administer personal trusts for themselves, for their families, for an estate or
       for a charitable trust.
      Charitable Organizations that maintain endowment accounts or charitable accounts.
      Corporations that maintain accounts for non-profit organizations or associations.

Account Requirements
The minimum account size for a client of Dixon Financial Services is typically $500,000. We
may make, at our discretion, exceptions to this based on a variety of factors. These factors
include, but are not limited to, considerations such as growth potential, relationship of a potential
client to us or to a current client, and the type of client.