We Family Offices LLC

Item 5 – Fees and Compensation

Our clients compensate us for our investment advice and other family office services by
paying us advisory fees. WE does not receive any compensation based on the
recommendation or sale of securities or other investment products – i.e., transaction-based
compensation. Our advisory fees are generally payable quarterly, in arrears, for the prior
quarter, upon our presentation of an invoice to the client.

Ongoing Family Office Services Mandates

The specific manner in which our clients with whom WE has ongoing family office services
mandates are charged fees is typically established in a written agreement between each
client and WE.

WE clients’ fees are negotiated and determined based on factors such as the overall
complexity of the client’s financial affairs, the nature of the services provided, and other
unique factors. Some WE clients’ fees may differ from the fees in the guidelines below.

WE’s current flat fee guidelines are:

   1)   $200,000 minimum fee;
   2)   $250,000 to $500,000 for clients with a net worth of $50 million to $250 million;
   3)   $500,000 to $700,000 for clients with a net worth of $250 million to $500 million;
   4)   $700,000 to $1,000,000 for clients with a net worth of $500 million to $1 billion; and

   5) $1,000,000 and more for clients with a net worth of $1 billion or greater.

Our strong preference is for flat fee compensation arrangements; although, a number of our
clients who signed agreements with one of our predecessor firms, pay us an annual wealth
management fee based on a percentage of the value of the client’s assets under advisement
(“AUA Fees”). These fees typically have ranged from 0.45% to 1.50% of AUA, and generally
decrease as a percentage of AUA as the AUA amount increases. To calculate a client’s annual
management fees based on the amount of AUA, WE relies on prices and asset values obtained
from a third party wealth management platform – Addepar, Inc. sourced data and other
third-party platforms (i.e. direct feeds) and non-direct feed data that may be obtained, but
not limited to, one or more of: (1) financial information services (e.g., Factset); (2) reporting
by money managers; (3) periodic account statements of custodians of client’s assets; or (4)
real asset values provided by a client. See also, Item 6, below.

Unless otherwise specified in a written investment advisory agreement, for accounts with
advisory fees calculated as a percentage of AUA, WE adjusts the balance of a client’s AUA that
is subject to the percentage fee to account for each significant capital contribution and
withdrawal made during the applicable calendar quarter. Asset pricing used in calculating a
client’s AUA is subject to the reasonable availability of current prices for their assets. For
example, pricing for certain kinds of investments, such as private equity, is often available
only significantly after a given date, such as a quarter- or year-end. In those instances, WE
uses the most recent available pricing for the asset to calculate asset value-based client fees.

Our advisory agreements typically provide that accounts initiated or terminated during a
calendar quarter will be charged the agreed advisory fee until the end of the first calendar
quarter (e.g., March 31, June 30, September 30, or December 31) following the last day of the
prescribed notice period, typically sixty (60) calendar days.

Wealth Enterprise Diagnostic Services

In addition to ongoing family office services mandates, WE also provides investment
advisory services pursuant to mandates from clients to perform a wealth diagnostic in return
for a flat fee, which ranges from $50,000 to $100,000.

Our wealth diagnostic is a limited or project-based engagement in which we map out a client
family’s current wealth enterprise to develop a series of specific action steps for the family
to address their specific current concerns, and better manage the enterprise over the short
and long terms. The diagnostic process also enables a family to have a “trial run” of the
benefits of engaging WE as their family office. The diagnostic is designed to provide a
powerful set of data and insights into the family’s current wealth picture, and typically
focuses on the following activities:

       •   Creating a comprehensive map of a family’s overall wealth enterprise that
           includes:

               o The family’s assets and liabilities;

               o Current investment portfolio diagnostic (asset allocation, performance,
                 manager quality, fees and expenses, etc.);
               o Sources & uses of cash and a liquidity analysis;
               o Review of the ownership and decision-making rights in each family wealth
                 structure;
               o Analysis of current wealth services providers (banks, brokers, asset
                 managers, insurance, accountants, lawyers, etc.), and fees paid.

       •   Developing an initial set of strategic goals and objectives (i.e. what’s important to
           the family) including an investment policy statement to help set the frame for
           decision-making and wealth management on an on-going basis;

       •   Creating a plan for specific action based on the findings and implications of the
           diagnostic, including a proposal to engage WE to provide ongoing family office
           services designed to put the client in control of their wealth.

These diagnostic mandates are performed pursuant to a letter agreement with the client
specifying the scope of the services to be provided, the deliverables, and the term of the
project, which is typically three months, but may be extended upon the client’s request.

Clients Also Pay Fees Charged by Their Third-Party Service Providers

WE’s advisory fees do not include any fees charged to clients by brokers, money managers,
and other third-party service providers our clients use. These and other providers’ charges
...

Item 7 – Types of Clients

WE provides, among other family office services, investment advisory services to high net
worth and ultra-high net worth families.