Johnson Bixby & Associates LLC

Item 5: Fees & Compensation

Compensation for Our Advisory Services

Asset Management:

Clients will be charged an ongoing annual fee applied quarterly in advance based on the value of
the assets in the client’s account on the last day of the month prior to the current billing cycle. Our
fee for Asset Management as a percentage of assets under management will not exceed 1.50%.
Fees to be assessed will be outlined in the advisory agreement to be signed by the client. Our firm
bills on cash balances unless otherwise agreed in writing. Our fees vary and are negotiable. The
amount clients pay will depend, for example, on the complexity of each client situation, the
services clients receive and the amount of assets in the client’s account. Our firm’s fees will be
automatically deducted from the client’s advisory account. Our firm will assess fees on a pro-rata
basis (based on the number of days) for accounts that transfer intra-quarter, in other
circumstances, we will waive our fee, and start billing on the next cycle. In rare cases, we will agree
to send clients invoices rather than automatically deduct our fees from a client’s advisory account.

ADV Part 2A – Firm Brochure                   Page 5                                       Johnson Bixby

Further, it is important to note that our firm includes cash and cash equivalents held in clients’
managed accounts for billing purposes. As part of this process, clients understand the following:

    a) The client’s independent custodian sends statements at least quarterly showing the market
       values for each security included in the assets and all account disbursements, including the
       amount of the advisory fees paid to our firm;
    b) Clients will provide authorization permitting our firm to be directly paid by these terms.
       Our firm will send an invoice directly to the custodian; and
    c) If our firm sends a copy of our invoice to the client, a legend urging the comparison of
       information provided in our statement with those from the qualified custodian will be
       included.

Financial Planning & Consulting:

Our firm charges on an hourly, flat, or recurring fee basis for financial planning and consulting
services. The total estimated fee, as well as the ultimate fee charged, is based on the scope and
complexity of our engagement with the client. The maximum hourly fee to be charged will not
exceed $500. Flat fees will not exceed $10,000. Recurring fees will not exceed $20,000 annually.
The fee-paying arrangements will be determined on a case-by-case basis and will be detailed in
the signed consulting agreement. Our firm will not require a retainer exceeding $1,200 when
services cannot be rendered within six months.

Clients who pay $10,000 or more in annual advisory fees attributed to our firm’s Asset
Management will execute a Financial Planning & Consulting Agreement at no additional cost after
paying a one-time, initial Financial Planning & Consulting fee at the onset of the relationship.
Thereafter, clients will receive ongoing Financial Planning & Consulting Services as part of the
Asset Management service with no additional charges unless disclosed in advance. Some instances
in which our firm may assess an additional fee include but are not limited to: work that involves
extensive estate planning, divorce work, assisting with pension paperwork & analysis, business
evaluation, meetings with additional consultants such as a CPA, attorney, etc.; and in situations in
which the client does not pay at least $10,000 in annual advisory fees attributed to our Asset
Management service. Our firm may choose to waive the initial financial planning & consulting fee
requirement for legacy clients or under other circumstances at our sole discretion.

Other Types of Fees & Expenses

Clients will incur transaction fees for trades executed by Charles Schwab & Co., Inc. (“Schwab”),
via individual transaction charges. These transaction fees are separate from our firm’s advisory
fees and will be disclosed by Schwab. Schwab does not charge transaction fees for U.S. listed
equities and exchange traded funds.

Clients may also pay holdings charges imposed by Schwab for certain investments, charges
imposed directly by a mutual fund, index fund, or exchange traded fund, which shall be disclosed
in the fund’s prospectus (i.e., fund management fees and other fund expenses), mutual fund sales
loads, 12b-1 fees, surrender charges, variable annuity fees, IRA and qualified retirement plan fees,
mark-ups and mark-downs, spreads paid to market makers, fees for trades executed away from
custodian, wire transfer fees and other fees and taxes on brokerage accounts and securities
transactions. Our firm does not receive a portion of these fees.

ADV Part 2A – Firm Brochure                  Page 6                                      Johnson Bixby

Termination & Refunds

Either party may terminate the advisory agreement signed with our firm for Asset Management
services in writing at any time. Upon notice of termination, our firm will process a pro-rata refund
of the unearned portion of the advisory fees charged in advance.

Financial Planning & Consulting clients may terminate their agreement at any time before the
delivery of a financial plan by providing written notice. For purposes of calculating refunds, all
work performed by us up to the point of termination shall be calculated at the hourly fee currently
in effect. Clients will receive a pro-rata refund of unearned fees based on the time and effort
expended by our firm.

Commissionable Securities Sales

Representatives of our firm can be separately licensed as registered representatives of Private
Client Services, LLC. (“PCS”), member FINRA/SIPC. As such they can accept compensation for the
sale of securities or other investment products, including distribution or service (“trail”) fees.
Clients should be aware that the practice of accepting commissions for the sale of securities
...

Item 7: Types of Clients & Account Requirements

Our firm has the following types of clients:
    Individuals and high net worth individuals;
    Trusts, estates or charitable organizations;
    Corporations, limited liability companies and/or other business types

Clients who pay $10,000 or more in annual advisory fees attributed to our firm’s Asset
Management service will pay a one-time, initial Financial Planning & Consulting fee at the onset
of the relationship. Thereafter, clients will receive ongoing Financial Planning & Consulting
Services as part of the Asset Management service with no additional charges unless disclosed in

ADV Part 2A – Firm Brochure                  Page 7                                      Johnson Bixby

advance. Some instances in which our firm may assess an additional fee include but are not limited
to: work that involves extensive estate planning, divorce work, assisting with pension paperwork
& analysis, business evaluation, meetings with additional consultants such as a CPA, attorney, etc.;
and in situations in which the client does not pay at least $10,000 in annual advisory fees
attributed to our Asset Management service. Our firm may choose to waive the initial financial
planning & consulting fee requirement for legacy clients or under other circumstances at our sole
discretion.