Dowling Financial Services Inc

Item 5 - Fees and Compensation

Fees and Payment

Portfolio Management Services
Our fee for portfolio management services is based on a percentage of your assets we
manage and is set forth in the following fee schedule:

                 Assets Under Management                         Annual Fee
              Up to $1,000,000                                   1.25%
              $1,000,000 - $1,999,999                            1.00%
              $2,000,000 - $4,999,999                            0.90%
              $5,000,000 - $9,999,999                            0.85%
              $10,000,000 - $14,999,999                          0.80%
              $15,000,000 - $20,000,000                          0.75%
              $20,000,000 +                                      Negotiable

Our annual portfolio management fee is billed and payable quarterly, in advance, as set
forth in the investment advisor agreement between you and us. Fees are based on the
value of your account on the last day of the previous quarter. In lieu of quarterly
payments, you have the option to be billed monthly in advance based on the value of
your account on the last day of the previous month.

If the portfolio management agreement is executed at any time other than the first day
of a billing period, our fees will apply on a pro rata basis, which means that the advisory fee
is payable in proportion to the number of days in the quarter (or month) for which you are
a client. Our advisory fee is negotiable, depending on individual client circumstances.

At our discretion, we may combine the account values of family members living in the
same household to determine the applicable advisory fee. For example, we may combine
account values for you and your minor children, joint accounts with your spouse, and
other types of related accounts. Combining account values may increase the asset total,
which may result in your paying a reduced advisory fee based on the available
breakpoints in our fee schedule stated above.

You may terminate the portfolio management agreement upon written notice to our firm.
You will incur a pro rata charge for services rendered prior to the termination of the

portfolio management agreement, which means you will incur advisory fees only in
proportion to the number of days in the quarter for which you are a client. If you have pre-
paid advisory fees that we have not yet earned, you will receive a prorated refund of those
fees equal to the proportionate amount of such fees that are attributable to the number of
days in the quarter that remain after the effective date of termination.

We will send you an invoice for the payment of our advisory fee, or we will deduct our
fee directly from your account through the qualified custodian holding your funds and
securities. We will deduct our advisory fee only when you have given our firm written
authorization permitting the fees to be paid directly from your account. Further, the
qualified custodian will deliver an account statement to you at least quarterly. These
account statements will show all disbursements from your account. You should review
all statements for accuracy.

Financial Planning Services

We charge a fixed fee or hourly rate for broad-based financial planning services, which
generally ranges between $2,500 and $20,000. The fixed fee is determined by estimating
the amount of time we will spend on the plan, considering such factors as the complexity
and scope of the desired plan. If you only require advice on a single aspect of your
finances, we offer modular financial planning/general consulting services on an hourly
basis. Our rate for such services is $500 per hour for our professional staff and. Our fee
may be negotiable depending on the scope and complexity of the plan, your financial
situation, and your objectives. An estimate of the total time/cost will be determined at the
start of the advisory relationship. In limited circumstances, the cost/time could potentially
exceed the initial estimate. In such cases, we will notify you in advance and request
that you approve the additional fee.

Financial planning clients are expected to pay for services in advance. If you terminate
a financial planning contract, you will incur a pro rata charge for services rendered prior to
the termination of the agreement. We will provide you with an invoice for estimated
financial planning fees, which will be due at the inception of the financial planning process.
In some circumstances, we may permit you pay 50% of the fee in advance and the
remaining portion upon the completion of the services rendered.

You may terminate the financial planning agreement by providing written notice to our firm.
You will incur a pro rata charge for services rendered prior to the termination of the
agreement. If you have pre-paid advisory fees that we have not yet earned, you will receive
a prorated refund of those fees.

Selection of Other Advisers

Advisory fees charged by third party advisors (“TPAs”) are separate and apart from our
advisory fees. Assets managed by TPAs will be included in calculating our advisory fee,
which is based on the fee schedule set forth in the “Portfolio Management Services” section
in this Brochure. Advisory fees that you pay to the TPA are established and payable in
accordance with the disclosure brochure provided by each TPA to whom you are referred.
These fees may or may not be negotiable. You should review the recommended TPA’s
disclosure brochure and take into consideration the TPA’s fees along with our fees to
determine the total amount of fees associated with this program.

In most cases, you will be required to sign an agreement directly with the recommended
TPA(s). You may terminate your advisory relationship with the TPA according to the terms
of your agreement with the TPA. You should review each TPA’s disclosure brochure for
specific information on how you may terminate your advisory relationship with the TPA
...

Item 7 - Types of Clients

We offer investment advisory services to individuals, high net worth individuals,
pensions and profit-sharing plans, corporations, and other business entities.

In general, other than for the automated investment program, we require a minimum of
$500,000 to open and maintain an advisory account. At our discretion, we may waive
this minimum account size. For example, we may waive the minimum if you appear to
have significant potential for increasing your assets under our management. We may
also combine account values for you and your minor children, joint accounts with your
spouse, and other types of related accounts to meet the stated minimum.