Philip O Johnson & Company Ltd

ITEM 5 - FEES AND COMPENSATION
Fee Schedule

Investment Management Services
JFA charges advisory fees for investment management services based on a percentage of the client’s
total assets under management. Fees are billed at a rate not to exceed 2.25% annually based on the size
of the client’s portfolio, and the scope and complexity of the services provided.

Johnson Financial Advisors                           8                                     Part 2A Brochure

JFA, in its discretion, may negotiate fees based upon individual account criteria such as anticipated
future assets, client’s unique circumstances, and additional services performed. Our fees may be higher
or lower than fees charged by other financial professionals offering similar services or by JFA to other
clients with similar investment and risk profiles. Some accounts are under different fee schedules
honoring prior agreements. Cash balances and balances subject to currently outstanding margin loans
are included for fee calculation purposes. We also manage some family and related accounts with fees
waived or at a reduced charge.

Financial Planning Services
We charge a fixed fee for financial planning services with a $2,500 minimum fee for all plans; however,
some or all of the fees may be waived for clients that engage us for investment management services.
We base the total fee, which is negotiable, on the nature and complexity of the plan, report, or analysis
and both parties will agree to our fees in advance of JFA providing any services. In addition to the initial
financial planning fee, additional fees for any annual reviews and/or updates to the financial plan will be
quoted in advance.

Billing Method

Investment Management Services
JFA’s advisory fees are payable monthly in arrears at the beginning of each calendar month. We charge
one twelfth of the annual fee each month based on the market value of the client’s portfolio as of the
last business day of the prior calendar month. The formula used for the calculation is as follows: (Annual
Rate) x (Total Assets Under Management at Month-End) / 12. JFA also bills advisory fees to some clients
monthly in advance honoring prior agreements. For legacy accounts held at Osaic, contributions or
withdrawals greater than $10,000 made during the billing period result in a pro-rata adjustment to the
client’s advisory fee. For accounts held at Fidelity, we do not adjust for contributions or withdrawals
made during the billing period.

For new client accounts, the first payment is a pro-rata calculation that takes into consideration the
number of days remaining in the month and the initial value of the portfolio on the day account
management begins. We consider account management to begin when the client’s account is funded.
The formula used to calculate the initial advisory fee would be as follows: (Result of monthly Calculation)
x (Days Remaining in Month) / (Total Number of Days in Month). For advisory fee calculation purposes, a
day is any calendar day including weekends and holidays.

With client authorization, JFA will automatically withdraw JFA’s advisory fee from the client’s account
held by an independent custodian. Typically, the custodian withdraws advisory fees from the client’s
account based on JFA’s instruction. All clients will receive brokerage statements from the custodian no
less frequently than quarterly (generally, monthly). The custodian statement will show the deduction of
the advisory fee.

Financial Planning Services
The total Financial Planning Services fee is due and payable at the time the client executes the contract
for services. At no time will fees of more than $1,200 be charged more than six months in advance.

Johnson Financial Advisors                           9                                      Part 2A Brochure

Other Fees and Expenses
JFA’s fees do not include custodian fees. Clients pay all brokerage commissions, stock transfer fees,
margin charges, foreign exchange, and settlement fees, and/or other charges incurred in connection
with transactions in accounts, from the assets in the account. These charges are in addition to the fees
client pays to JFA. See Item 12 - Brokerage Practices below for more information.

If mutual fund shares are held in a client’s account, the client will be subject to deferred sales charges,
12b-1 fees, early redemption fees, and other fund-related expenses, as applicable. Each fund’s
prospectus fully describes the fees and expenses. All fees paid to JFA for investment management
services are separate and distinct from the fees and expenses charged by mutual funds. Mutual funds
pay advisory fees to their managers, which are indirectly charged to all holders of the mutual fund
shares.

Termination

Investment Management Services
Either party may terminate the agreement upon written notice to the other party. For fees billed in
arrears, the client will receive an invoice showing the advisory fees due for services rendered and not
yet paid and any earned unpaid advisory fees will be due and payable. For fees billed in advance, JFA will
refund any prepaid, unearned advisory fees based on the effective date of termination.

Terminations will not affect liabilities or obligations from transactions initiated in client accounts prior to
termination. In the event the client terminates the investment advisory agreement, JFA will not liquidate
any securities in the account unless instructed by the client to do so. In the event of client’s death or
disability, JFA will continue management of the account until we are notified of client’s death or
disability and given alternative instructions by an authorized party. Our ongoing management and/or
ability to effect transactions in a client’s account(s) may be limited by restrictions placed on accounts by
the client’s broker/custodian.

Financial Planning Services
In the event that either the client or JFA wishes to terminate the financial planning agreement before
...

ITEM 7 - TYPES OF CLIENTS
JFA provides advisory services to individuals, high net worth individuals, trusts and estates, charitable
organizations, and businesses.

Johnson Financial Advisors                            10                                      Part 2A Brochure

Account Requirements
Generally, JFA requires clients to maintain a minimum portfolio size of $250,000. Withdrawal of
significant funds may result in a request for additional fund deposits to continue with management of
accounts. At our discretion, we may combine extended family accounts to meet the account size
minimum or reduce or waive the account minimum requirements.