Hoffmann Hermanson LLC

ITEM 5: FEES & COMPENSATION

Asset Management Fees

Hoffmann Hermanson’s primary compensation is in the form of fees assessed as a
percentage of investment assets managed.

       Table 1 ~ Asset Management Fees
         Household Assets                 Quarterly Rate**       Annual Rate**
         $0 - $1,000,000                  0.3125%                1.25%
         $1,000,001-$5,000,000            0.25%                  1%
         $5,000,001 and over              0.1875%                0.75%
       *Hoffmann Hermanson defines a household as any number of family members sharing
       the same residence.
       **All rates are marginal. For example, on an annual basis, a household with $1.5 million
       under management would be assessed a fee of 1.25% on the first $1,000,000 and a fee
       of 1% on the next $500,000.

Negotiation of Fees

Subject to the approval of the managing partners, Hoffmann Hermanson may negotiate
adjustments to the fee schedule based on account size, prospective new assets or other
factors.

Calculating Fees

Asset management fees are collected in advance of each quarter by multiplying the
market value of the account on the last day of the preceding quarter by the appropriate
quarterly rate. For example, an account with a market value of $100,000 on the last day
of the previous calendar quarter would be assessed a fee of $312.50 ($100,000 x
.3125%).

For new accounts opened in the middle of a quarter, the first fee is paid at the beginning
of the subsequent quarter. The fee for the partial quarter is pro-rated and collected in
arrears along with the fee for the subsequent quarter. Fees are adjusted to reflect
material additions to or subtractions from the account on a pro-rata basis

Payment of Fees

Advisory fees are withdrawn directly from client accounts pursuant to the client's written
permission, which is granted as part of the client’s account application. Fee
disbursements are reflected in the transaction summary of client account statements,
which are provided by the firm’s account custodian. See Item 12 for more information
about custodian selection and Item 15 for more information about electronic fee
deduction.

                         Form ADV Part 2, Hoffmann Hermanson LLC

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Account Termination

A client may close their account at any time without penalty by notifying Hoffmann
Hermanson in writing. If a client terminates an account before the end of a quarter that
has already been billed, the client will receive a pro-rata refund.

Example: A client pays $1,000 for second quarter fees and then terminated the account
on May 31. The client would receive a refund of $1,000 x (30/91) = $329.67.

Other Investment-Related Fees & Expenses

Clients are responsible for all third-party investment expenses, including broker
commissions, service fees as and mutual fund operating, administrative and sales
expenses where applicable. Hoffmann Hermanson does not receive any portion of
these fees and attempts to minimize them to the greatest extent possible by selecting
competitively priced products and services.

ITEM 7: TYPES OF CLIENTS

Hoffmann Hermanson provides advisory services to individuals, trusts, estates,
charitable organizations, businesses and business entity retirement plans.
Hoffmann Hermanson does not impose asset minimums to open or maintain an account.
Each client brings a unique set of financial circumstances to the relationship, and the
firm evaluates these circumstances on a case-by-case basis rather than by drawing an
arbitrary line based on current investable assets.