Biltmore Family Office LLC

Item 5 - Fees and Compensation

All fee arrangements are agreed upon when the client engages our firm and are based specifically on each
client’s individual circumstances. For example, clients may agree to pay an asset-based Wealth
Management Fee assessed on the market value of the assets under management. In other situations, we
may agree that a fixed fee arrangement is more suitable. Under certain circumstances, the agreed-upon
fee may be comprised of a combination of these two methods. In either case, individual client fee schedules
are negotiated on a client-by-client basis based on the complexity of the relationship and other
considerations. In addition to asset size, we evaluate client complexity based on the services we provide,
the ownership and legal structure, the number and location of family members and the complexity,
composition, and frequency of reporting services. Regardless of the fee calculation methodology, accounts
are managed in the same way and with the same level of high customer service.

Wealth Management Fees
Our preference is to charge our client families a flat retainer-based fee ranging from $100,000 to
$1,000,000, as that is more representative of the services we provide and the complexity of the families
we serve, rather than the market value of assets under supervision. The retainer fee with the client would
be reviewed as the client’s service needs change.

However, we can also charge fees based on the market value of a client’s account(s), which is calculated
pursuant to BFO’s current fee schedule in effect at the time the applicable service is rendered. Our
published Wealth Management fee is as follows:

                        Assets Under Management         Annual Rate
                        The first $10,000,000             1.00%
                        $10,000,001-$25,000,000           0.85%
                        $25,000,001 and over              0.50%

Fees are payable quarterly in arrears at the end of each quarter based on the negotiated retainer fee or on
the market value of the client’s account(s).

It should also be noted that there is an annual minimum Wealth Management Fee of $100,000.

In some circumstances when the Wealth Management Fee is calculated using market values, several client
accounts’ values under our management may be aggregated and the total fee pro-rated across accounts
so that a client’s family benefits from the tiered fee schedule.

We do not receive, under any circumstances, any remuneration from any sub-advisor, affiliated advisor,
third party money manager or private fund manager for the recommendation of any such manager or fund
to our clients or inclusion in client portfolios. All fees charged by sub-advisors, affiliated advisors and
private funds are separately disclosed to, and agreed upon by, the client. The client should review all fees
charged by funds, brokers, BFO and others to fully understand the total amount of fees paid by the client
for investment and financial-related services. We strive to negotiate and minimize sub-advisor fees in favor
of our clients.

Either we or the client may terminate the Investment Advisory Agreement at any time, subject to any
written notice requirements in the agreement. In the event of termination, any fees due to our firm from
the client will be invoiced or deducted from the client’s account prior to termination.

Our fee is exclusive of all custodial and transaction costs (see Item 12 – Brokerage Practices for more
information on our brokerage practices) as well as fees charged by sub-advisors, including advisors or sub-
advisors to private funds in which our clients may invest. These fees may vary and will depend on several
factors including, but not limited to, the size of investment, trading strategy, and degree of risk. Sub-advisor
management fees generally range from 0.10% to 2.00% of assets per annum. In addition, some sub-
advisors may charge performance fees of up to 20% of the profits experienced in an account. Since
performance fees are generally based upon increase in the net assets of the portfolio, such performance
fees may be based upon unrealized appreciation as well as realized gains. Mutual funds and exchange-
traded funds also charge internal management fees, which are disclosed in a fund’s prospectus.

Item 7 - Types of Clients

We serve the following types of clients, without limitation:

       1. High net worth individuals and other individuals,
        2. Trusts, estates, foundations, and other charitable organizations,
        3. Limited liability companies, and corporations.

We typically work with clients whose investible net worth or total net worth exceeds $25 million which is

often composed of liquid and illiquid net worth, operating businesses, real estate, or other private
investments. Our clients generally are, or have been, entrepreneurs, business owners, business sellers, or
corporate executives. We often work with existing single-family offices in various roles to complement the
services they provide internally.