Hofer & Associates Inc

Item 5 Fees and Compensation
Portfolio Management Services
Our fee for portfolio management services is based on a percentage of the assets in your account and
is set forth in the following annual fee schedule:

                                         Annual Fee Schedule

           Assets Under Management                                        Annual Fee
                 $0 - $250,000                                              1.15%
              $250,000 - $1,000,000                                         1.00%
            $1,000,000 - $2,000,000                                         0.90%
            $2,000,000 - $4,000,000                                         0.80%
             $4,000,000 - $6,000,000                                        0.70%
                  $6,000,000 +                                              0.60%

Our annual portfolio management fee is billed and payable, monthly in advance, based on the balance
at end of billing period. Please note that, on occasion, the asset values used to calculate fees as
reflected on your billing invoice may differ from the asset values on the custodian/broker-dealer's
monthly statement. This discrepancy is due to securities excluded from billing, and/or dividends,
interest or other purchases or sales that may not have settled as of the preparation date of the billing
invoice. In all cases, the fee charged to your account is as reflected on the billing invoice. If you have
any questions concerning these differences, please contact us at the number listed on the cover page
of this brochure.

If the portfolio management agreement is executed at any time other than the first day of a calendar
month, 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 month for which you are a client. The first monthly fee charged
will include this pro rata amount. 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.

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 the following requirements are met:

    • You provide our firm with written authorization permitting the fees to be paid directly from your
      account held by the qualified custodian.
    • We send you an invoice showing the amount of the fee, the value of the assets on which the
      fee is based, and the specific manner in which the fee was calculated at the same time we send
      a copy to the custodian.
    • The qualified custodian agrees to send you a statement, at least quarterly, indicating all
      amounts dispersed from your account including the amount of the advisory fee paid directly to
      our firm.

We encourage you to reconcile our invoices with the statement(s) you receive from the qualified
custodian. If you find any inconsistent information between our invoice and the statement(s) you
receive from the qualified custodian call our main office number located on the cover page of this
brochure.

You may terminate the portfolio management agreement upon 30 days written notice. 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 month 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.

Financial Planning Services
We charge a fixed fee for financial planning services, which generally ranges between $1,000 - $5,000.
The fee is negotiable depending upon the complexity and scope of the plan, your financial situation,
and your objectives. We do not require you to pay fees six or more months in advance. Fees are
payable on completion of the contracted services.

Depending on the arrangements made at the time of the engagement we may also agree to charge an
hourly fee ranging from $60 to $350 for financial planning services. This fee is also negotiable
depending on the scope and complexity of the plan, your situation, and your financial 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 and request that you approve the additional fee.

We also offer advice on single subject financial planning/general consulting services at the same
hourly rate.

We will not require prepayment of a fee more than six months in advance and in excess of $1,200.

At our discretion, we may offset our financial planning fees to the extent you implement the financial
plan through our Portfolio Management Service.

Our financial planning fees are negotiable and payable on completion of the contracted services. You
may terminate the financial planning agreement by providing written notice to our firm. Since fees are
payable in arrears, you will be responsible for a prorated fee based on services performed.

Additional Fees and Expenses
As part of our investment advisory services to you, we may invest, or recommend that you invest, in
mutual funds and exchange traded funds. The fees that you pay to our firm for investment advisory
services are separate and distinct from the fees and expenses charged by mutual funds or exchange
...

Item 7 Types of Clients
We offer investment advisory services to individuals (other than high net worth individuals), high net
worth individuals, charitable organizations and corporations or other businesses not listed above.

In general, we do not require a minimum dollar amount to open and maintain an advisory account;
however, we have the right to terminate your Account if it falls below a minimum size which, in our sole
opinion, is too small to manage effectively.

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.