Hoffman Alan Nathan

Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
 ASSET MANAGEMENT
 Hoffman, Alan N. Investment Management offers discretionary direct asset management
 services to advisory Clients. Hoffman, Alan N. Investment Management charges an annual
 investment advisory fee based on the total assets under management of 1.5%.
 For example, a client with $500,000 under management would pay $7,500 on an annual
 basis. Each quarter the fee for this account will be calculated as follows: Account balance at
 quarter end X (1.5%/4) = Quarterly Fee.
 The annual fee may be negotiable based upon certain criteria (e.g., historical relationship,
 type of assets, anticipated future earning capacity, anticipated future additional assets, dollar

 amounts of assets to be managed, related accounts, account composition, negotiations with
 Clients, etc.).
 Fees are billed quarterly in arrears based on the amount of assets managed as of the close of
 business on the last business day of the previous quarter. Lower fees for comparable services
 may be available from other sources. Clients may terminate their account within five (5)
 business days of signing the Investment Advisory Agreement with no obligation and without
 penalty. Clients may terminate advisory services with thirty (30) days written notice. For
 accounts opened or closed mid-billing period, fees will be prorated based on the days
 services are provided during the given period. All unpaid earned fees will be due to Hoffman,
 Alan N. Investment Management. Client shall be given thirty (30) days prior written notice
 of any increase in fees. Any increase in fees will be acknowledged in writing by both parties
 before any increase in said fees occurs.
 If Hoffman, Alan N. Investment Management is authorized or permitted to deduct fees
 directly from the account by the custodian:
    •   Hoffman, Alan N. Investment Management will provide the Client with an invoice
        concurrent to instructing the custodian to deduct the fee stating the amount of the
        fee, the formula used to calculate the fee, the amount of assets under management the
        fee is based on and the time period covered by the fee;
    •   Hoffman, Alan N. Investment Management will obtain written authorization signed
        by the Client allowing the fees to be deducted; and
    •   The Client will receive quarterly statements directly from the custodian which
        disclose the fees deducted.
Client Payment of Fees
 Investment management fees are billed quarterly in arrears, meaning that we invoice you
 after the billing period. Fees are usually deducted from a designated Client account to
 facilitate billing. The Client must consent in advance to direct debiting of their investment
 account.
 Hoffman, Alan N. Investment Management, in its sole discretion, may waive its minimum fee
 and/or charge a lesser investment advisory fee based upon certain criteria (e.g., historical
 relationship, type of assets, anticipated future earning capacity, anticipated future additional
 assets, dollar amounts of assets to be managed, related accounts, account composition,
 negotiations with Clients, etc.).
Additional Client Fees Charged
 Custodians may charge transaction fees on purchases or sales of certain mutual funds,
 equities, and exchange-traded funds. These charges may include mutual fund transaction
 fees, postage and handling and miscellaneous fees.
 For more details on the brokerage practices, see Item 12 of this brochure.
Prepayment of Client Fees
 Hoffman, Alan N. Investment Management does not require any prepayment of fees.

External Compensation for the Sale of Securities to Clients
 Hoffman, Alan N. Investment Management does not receive any external compensation for
 the sale of securities to Clients, nor do any of the investment advisor representatives of
 Hoffman, Alan N. Investment Management.

Item 7: Types of Clients
Description
 Hoffman, Alan N. Investment Management generally provides investment advice to
 individuals and high net worth individuals.
 Client relationships vary in scope and length of service.
Account Minimums
 Hoffman, Alan N. Investment Management requires a minimum of $100,000 to open an
 account. In certain instances, the minimum account size may be lowered or waived.