Compound Family Offices LLC

Fees and Compensation - Item 5

 Generally, Compound offers its fee-only advisory services for an annual asset-based fee. Our fees are described
 generally below and are detailed in each client’s Family Office Services Agreement executed with our firm. At our
 discretion, we may group multiple accounts of a client (or a group of related clients) together for fee billing
 purposes. Fees may change over time and, at our discretion, different fees or fee payment arrangements may be
 negotiated with different types of clients, different strategies, and different advisory arrangements as set forth in
 your Family Office Services Agreement with our firm.

 Compound’s standard annual family office services asset-based fee is charged as detailed below, based on the
 following blended tier schedule.**

                      Asset Amount                                          Maximum Annual Fee
                    $0 to $10,000,000                                             1.00%
               $10,000,001 to $20,000,000                                         0.85%
               $20,000,001 to $30,000,000                                         0.70%
               $30,000,001 to $80,000,000                                         0.50%
                    Over $80,000,001                                              0.25%

 **For example, an account with assets of $15,000,000 will be charged an annualized asset-based fee of 1.00% on
 the first $10,000,000, and the remaining $5,000,000 would be assessed the lower fee of 0.85%.

 Compound reserves the right to negotiate or waive certain fees depending on the circumstances. The exact fee
 to be paid by the client will be clearly stated in the Family Office Services Agreement signed by the client and the
 firm.

Compound Family Offices, LLC
Form ADV Part 2A Disclosure Brochure

 Billing on Cash Positions: The firm treats cash and cash equivalents as an asset class. Accordingly, unless otherwise
 agreed in writing, all cash and cash equivalent positions (e.g., money market funds, etc.) are included as part of
 assets under management for purposes of calculating the firm’s advisory fee. At any specific point in time,
 depending upon perceived or anticipated market conditions/events (there is no guarantee that such anticipated
 market conditions/events will occur), the firm may maintain cash and/or cash equivalent positions for defensive,
 liquidity, or other purposes. While assets are maintained in cash or cash equivalents, such amounts could miss
 market advances and, depending upon current yields, at any point in time, the firm’s advisory fee could exceed
 the interest paid by the client’s cash or cash equivalent positions.

 Periods of Portfolio Inactivity: The firm has a fiduciary duty to provide services consistent with the client’s best
 interest. As part of its investment advisory services, the firm will review client portfolios on an ongoing basis to
 determine if any changes are necessary based upon various factors, including but not limited to investment
 performance, fund manager tenure, style drift, account additions/withdrawals, the client’s financial
 circumstances, and changes in the client’s investment objectives. Based upon these and other factors, there may
 be extended periods of time when the firm determines that changes to a client’s portfolio are neither necessary
 nor prudent. Notwithstanding, unless otherwise agreed in writing, the firm’s annual investment advisory fee will
 continue to apply during these periods, and there can be no assurance that investment decisions made by the
 firm will be profitable or equal any specific performance level(s).

 Family office fees are billed quarterly, in arrears, and are based on the gross value of your portfolio at the end of
 the preceding quarter. Terms of payment are stated in the Family Office Services Agreement signed by the client
 and the firm. Generally, the family office fee will be deducted from the client’s account held with a non-affiliated,
 qualified custodian. The qualified custodian will provide the client with an account statement at least quarterly.
 This statement will detail all account activity, including any fees deducted from the account(s).

 At the inception of family office services, the first pay period’s fees will be calculated on a pro-rata basis. The
 Family Office Services Agreement between the client and Compound will continue in effect until either party
 terminates the Family Office Services Agreement in accordance with the terms of the Family Office Services
 Agreement. Compound’s annual fee will be prorated through the date of termination. Refunds are not applicable
 since fees are payable in arrears.

 Third-Party Investment Manager Fees
 Third-party investment managers charge separate fees in addition to our above-referenced fees. Third-party
 investment management fees may or may not be negotiable. Compound will attempt to negotiate third-party
 investment manager fees for the benefit of Compound’s clients with no direct benefit to Compound. You should
 carefully consider all fees charged by the third-party investment manager(s) and by us to determine the total
 amount of fees you will pay for the management of the assets managed by the third-party investment manager(s)
 that are also supervised by Compound. Generally, fees in excess of three percent of the assets under management
 are considered to be in excess of industry standards. In limited circumstances, for example, where clients are
 invested in certain private investments (e.g., certain hedge funds, funds-of-funds, etc.), the total combined fees
 paid to Compound and the third-party managers of these investments could exceed this amount. Therefore,
 clients should be aware that lower fee options may be available. Typically, fees paid to the third-party investment
 manager(s) and us will be deducted from the designated account(s) by the account custodian(s) as authorized by
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Types of clients - Item 7

 We primarily offer family office services to ultra-high net worth individuals and their families, including their
 trusts, estates, retirement accounts, and related entities. We also offer our services to charitable organizations,
 corporations, and other business entities.

 We generally require that family relationships have a minimum of $10,000,000 in assets to engage and maintain
 an advisory relationship with our firm. However, from time to time, in its sole discretion, Compound may accept
 smaller accounts based on various criteria, such as pre-existing client relationships with you or your family
 members and other related accounts, anticipated future assets, and account composition, among other factors
 and individual circumstances.

                       Methods of Analysis, Investment Strategies, and Risk of Loss - Item 8

 Methods of Analysis and Investment Strategies
 Compound utilizes quantitative and qualitative analysis as well as fundamental insight to determine client
 portfolio allocations, which are then allocated among managed accounts, mutual funds, exchange traded funds,
 and private funds (including hedge funds and private equity-type investments).

 Selection of Third-Party Investment Managers
 In the event we select third-party investment manager(s) to manage all or a portion of your assets, we will not
 perform a quantitative or qualitative analysis of individual securities. Instead, we will select third-party investment
 managers based on an assessment of the manager’s investment philosophy, process, fees, ownership and
 compensation structure, historical performance, and personal integrity of its management and personnel.
 Compound will attempt to negotiate third-party investment manager fees for the benefit of Compound’s clients
 with no direct benefit to Compound. We may replace a third-party money manager for any reason, including, for
 example, if there is an unexplained, significant deviation in characteristics or performance from the stated

Compound Family Offices, LLC
Form ADV Part 2A Disclosure Brochure

 strategy and/or benchmark. The primary risk associated with investing with a third-party investment manager is
 that while a particular third-party investment manager may have demonstrated a certain level of success in the
 past, it may not be able to replicate that success in future markets. In addition, as we do not control the underlying
 investments in third-party model portfolios, there is also a risk that a third party may deviate from the stated
 investment mandate or strategy of the portfolio, making it a less suitable investment for our clients. To mitigate
 this risk, we seek third parties with proven track records that have demonstrated a consistent level of
 performance and success over time. A third party’s past performance is not a guarantee of future results, and
 certain market and economic risks exist that may adversely affect an account’s performance, which could result
 in capital losses in your account.

 Additionally, we may use one or more of the following investment strategies when advising you on investments:
     • Long-Term Purchases – securities purchased with the expectation that the value of those securities will
         grow over a relatively long period of time, generally greater than one year. Using a long-term purchase
         strategy generally assumes the financial markets will go up in the long term, which may not be the case.
         There is also the risk that the segment of the market that you are invested in, or perhaps just your
         particular investment, will go down over time, even if the overall financial markets advance. Purchasing
         investments long-term may create an opportunity cost - "locking up" assets that may be better utilized
         in the short term in other investments.
     • Short-Term Purchases – securities purchased with the expectation that they will be sold within a
         relatively short period of time, generally less than one year, to take advantage of the securities' short-
         term price fluctuations. Using a short-term purchase strategy generally assumes that we can predict how
         financial markets will perform in the short term, which may be very difficult and will incur a
         disproportionately higher amount of transaction costs compared to long-term trading. Many factors can
         affect financial market performance in the short-term (such as short-term interest rate changes, cyclical
         earnings announcements, etc.), but may have a smaller impact over longer periods of time.
     • Short Sales – securities transactions in which an investor sells securities he or she borrowed in
         anticipation of a price decline. The investor is then required to return an equal number of shares at some
         point in the future. A short seller will profit if the stock goes down in price, but if the price of the shares
         increases, the potential losses are unlimited.
     • Options Writing – a securities transaction that involves selling an option. An option is a right, but not an
         obligation, to buy or sell a particular security at a specified price before the expiration date of the option.
         When an investor sells an option, he or she must deliver to the buyer a specified number of shares if the
         buyer exercises the option. The seller pays the buyer a premium (the market price of the option at a
         particular time) in exchange for writing the option. Options are complex investments and can be very
         risky, especially if the investor does not own the underlying stock. In certain situations, an investor’s risk
         can be unlimited.

 Risk of Loss
 Investing in securities involves the risk of loss that clients should be prepared to bear.

 The investment advice provided along with the strategies suggested by Compound will vary depending on each
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