Ballentine Partners LLC

Item 5.          Fees and compensation; valuation of securities
A.      Methods of compensation

        Our primary source of compensation is from fees paid to us by our clients in exchange for
advice and other services we provide. We also receive income from speaking engagements and
book sales. Our income from our relationship is fully disclosed in our Client Agreement with
you. This makes it very easy for you to determine your costs with us. We do not receive any
compensation from the sale of investment or insurance products, or from other investment
managers whom we may recommend. Our gifts and entertainment policy requires employees to
avoid lavish gifts and entertainment offered by investment managers and service providers.
        We customize our fee arrangement for you, based on the amount of staffing and other
resources your engagement will require. The fee agreement covers all services we contract to
deliver to you. Our fees are generally based on one of the following systems:
             •   A percentage of assets under our advice;

             •   A flat fee that is periodically renegotiated approximately annually; or

 Assets under management (AUM) are assets for which we provide continuous and regular advice, supervisory, or
management services. Assets under advisement (AUA) includes all Assets under management, plus other assets for
which we provide advice and implementation services.

  Discretionary means that we make investment decisions without consulting you. We are required to make our
decisions within the guidelines of your Investment Instructions. Please refer to Item 16 for more information.

  We provide strategic investment advice and wealth planning advice related to these assets, but we are not
responsible for the day-to-day investment decisions.

  This is the approximate value of other client assets that are under our strategic wealth planning advice.

                                     Ballentine Partners, LLC

           •   Project fees.

       Some of our clients pay fees based on assets under management, while others pay flat
fees. Investment accounts are managed the same regardless of the fee arrangement. A flat fee is
usually better suited for families with large, complex situations where most of the family’s assets
are committed to operating companies or other illiquid investments.
       If your fee is a calculated amount based on assets under management, we will use the
gross value of your account to calculate our fee. Therefore, if you borrow against the value of
any account whose value is included within the scope of our fee agreement, the amount you
borrow will not impact the fee we charge. If your Ballentine Partners fee agreement is based on
assets under our management, we have a conflict of interest with regard to providing you with
advice about whether or not to pay down margin debt or any other type of debt. Also, if your
Ballentine Partners fee agreement is based on assets under our management, the fee we are
charging to manage cash may exceed the yield on cash investments.
STANDARD FEES FOR HIGH NET WORTH CLIENTS
       Our standard tiered fee schedule based on assets under management for services provided
to High Net Worth clients ranges from 0.95% to 0.25% of the value of your portfolio, per
annum, with a minimum annual fee of $40,000.
STANDARD FEES FOR FAMILY OFFICE CLIENTS
       Our standard tiered fee schedule based on assets under management for services provided
to Family Office clients ranges from 0.60% to 0.10% of the value of your portfolio, per annum,
with a minimum annual fee of $180,000. Fixed service fees are negotiable, but generally range
from $180,000 to $500,000 yet may be higher or lower than the range described depending on
the level, scope, complexity, and range of services.
       Our flat fee is based on the scope of services we provide to each family and subjective
factors such as the degree of complexity in a family situation, it is likely our fee will differ for
families with similar amounts of investment assets. Also, the level of intensity of work and the
scope of services we provide is likely to vary over the course of a year. If you engage us to work
on a special project with a defined scope and duration, we will negotiate fees and payment terms
as part of the agreement defining the project.
SERVICES BY A SUPERVISED PERSON
       Upon request by a client, a supervised person of Ballentine may serve as trustee, trust

                                     Ballentine Partners, LLC

protector, secretary, or similar role for an advisory client. The supervised person’s position in
connection with advisory services Ballentine presents certain compliance risks and causes
Ballentine to have custody of client assets. Ballentine, accordingly, requires the Chief
Compliance and Risk Officer’s and Chief Wealth Advisory Officer’s approval before a
supervised person is permitted to serve these roles, and Ballentine monitors the actions taken.
Ballentine may charge fees for serving as trustee or similar roles that are determined on a case-
by-case basis. Flat fee relationships may range between $3,000 and $5,000 while AUM based
fees may range from 0.02% and 0.50% for each trust or entity. Fees may be higher or lower than
the range described depending on the complexity of the engagement and resources required.
FAMILY OFFICE – BILL PAYMENT ADMINISTRATION FEES
        As an optional service, Ballentine will provide bill payment administration services. Fees
are determined case-by-case and typically between $10,000 and $50,000 per year, although may
be significantly higher based on the complexity of the engagement and resources required.
CONSULTING FEES AND PROJECT BASED FEES
        For certain clients, Ballentine is contracted to provide advisory services or project-based
services which may be unrelated to the wealth and investment management services provided to
...

Item 7.           Types of clients
        We provide investment advice to the following types of clients:
              •   Individuals,

              •   Trusts and estates,

              •   Charitable foundations, charitable trusts, and other non-profit organizations, and

              •   Pension and profit-sharing plans.

        Most of our clients are individuals or trusts. The trusts, charitable organizations, and
retirement plans we serve are generally closely related to our individual clients.
        We generally (subject to exception at Ballentine’s discretion) serve families with at least
$4 million of investment assets. Many of our clients are families with large, complex financial
situations, who want objective advice, and who are seeking to optimize the use of their financial
resources.