Nicholas Hoffman & Company LLC

Item 5 - Fees and Compensation

General Fee Information
Fees paid to us are exclusive of all custodial and transaction costs paid to the client’s custodian,
brokers or other third-party consultants. Please see Item 12 - Brokerage Practices for additional
information. Fees paid to us are also separate and distinct from the fees and expenses charged by
mutual funds, private funds, ETFs (exchange traded funds) or other investment pools to their
shareholders (generally including a management fee and fund expenses, as described in each fund’s
prospectus or offering materials). The client should review all fees charged by funds, brokers, us and
others to fully understand the total amount of fees paid by the client for investment and financial-
related services.

Financial Planning Fees
When we provide financial planning services to clients, these services are generally part of our
portfolio management services. If a separate fee is to be charged for financial planning, it will be
negotiated at the time of the engagement for such services and will normally be in the form of a fixed
fee.

Portfolio Management Fees
The annual fee schedule, based on a percentage of assets under management, is as follows:

        First $1,000,000                       1.25%
        Next $2,000,000                        1.00%
        Next $2,000,000                        0.75%
        Next $5,000,000                        0.50%
        Next $10,000,000                       0.40%
        Amounts over $20,000,000               0.30%

Although we have established the standard fee structure set forth above, we retain the discretion to
negotiate or waive fees on a client-by-client basis. We may also negotiate a fixed fee or negotiate a
minimum portfolio value and/or a minimum fee. In proposing the fee structure for your account(s),
we consider the nature of our proposed advisory relationship, which is determined by the assets to
be placed under our management, anticipated future additional assets, the complexity of financial
planning and other services to be provided, other accounts you may have with us, account type,
portfolio style, account composition, and reporting, among other factors. Your specific annual fee
structure is described in your Advisory Agreement (“Agreement”) with us. Also, pre-existing advisory
clients are subject to any minimum fee requirements and advisory fees in effect at the time the client
entered into the advisory relationship with us. Therefore, the applicable minimum fee requirements
as well as advisory fees paid will differ among clients, and other clients may pay less than you or have
lower minimums.

Asset-based portfolio management fees are generally payable quarterly, in arrears. The client’s total
asset value at the end of each month in the quarter are averaged to calculate the “average monthly
balance” for the quarter. The average monthly balance is applied to the annual fee schedule set out
in the client’s Agreement and then divided by four (4) to calculate the quarterly fee. Clients with a
fixed fee arrangement may be charged quarterly in advance or arrears. Our policy is to round fee
values to the nearest whole dollar. Each client’s specific fee arrangement is detailed in the client’s
Agreement with us.

If management begins after the start of a quarter, fees will be prorated accordingly. With client
authorization and unless other arrangements are made, fees are normally debited directly from client
account(s).

Either we or the client may terminate the Agreement at any time, subject to any written notice
requirements in the Agreement. In the event of termination, any paid but unearned fees will be
promptly refunded to the client based on the number of days that the account was managed, and any
fees due us from the client will be invoiced or deducted from the client’s account prior to termination.

We do not trade on margin as an investment strategy. However, you may elect to borrow funds
against your investment portfolio. For accounts with a margin balance, you are assessed the
management fee based on the gross value of the assets in your account. In other words, your account
value on which the fee is calculated is not reduced by the margin balance. This could create a conflict

of interest in which we may have an incentive to encourage the use of margin as this could result in
a higher market value and therefore an increased management fee.

Family Office Services Fees
Family Office Services are individually negotiated and typically included in the client’s portfolio
management fee. The scope of services and applicable fee is described in the client’s Agreement with
us. Additional fees and expenses may be charged by third-party service providers.

Private Fund Fees
When a client invests in a Private Fund, the fees and other expenses assessed by the Private Fund will
be separate from and in addition to our fee. Additionally, some of the Private Funds that we
recommend charge performance-based fees. Clients invested in private funds bear the following
expenses in addition to any management or similar fees paid in respect of the investment:

       •   All costs, fees or expenses incurred in connection with:
                   − due diligence reviews of the investment or manager;
                   − negotiating, financing and documenting the investment or any sale or
                        recapitalization of the investment;
                   − all brokers, accountants, tax advisors, administrators, lawyers, investment
                        bankers, consultants, auditors and other advisors;
                   − all regulatory filings or any claim, action, suit, proceeding or litigation of any
                        kind or nature;
                   − the administrator, the custodian, the depositary or any other fund service
                        providers;
                   − underlying fees and expenses of pooled investment vehicles in which the
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Item 7 - Types of Clients

We serve individuals, pension and profit-sharing plans, trusts, foundations, private funds, and
estates. We may impose a minimum portfolio value eligible for conventional investment advisory
services and/or a minimum fee.

The minimum amounts to invest in private funds are disclosed in their respective offering
documents. Additionally, investors in private funds must meet specific suitability and investor
eligibility requirements in order to invest.